Utah Code 11-42-411. Installment payment of assessments

(1)

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Terms Used In Utah Code 11-42-411

Assessment area: means an area, or, if more than one area is designated, the aggregate of all areas within a local entity's jurisdictional boundaries that is designated by a local entity under Part 2, Designating an Assessment Area, for the purpose of financing the costs of improvements, operation and maintenance, or economic promotion activities that benefit property within the area. See Utah Code 11-42-102
Assessment bonds: means bonds that are:
(3)(a) issued under Section 11-42-605; and
(3)(b) payable in part or in whole from assessments levied in an assessment area, improvement revenues, and a guaranty fund or reserve fund. See Utah Code 11-42-102
Assessment resolution: means a resolution adopted by a local entity under Section 11-42-404 that levies an assessment on benefitted property within an assessment area. See Utah Code 11-42-102
Bonds: means assessment bonds and refunding assessment bonds. See Utah Code 11-42-102
Development authority: means :
(18)(a) the Utah Inland Port Authority created in Section 11-58-201; or
(18)(b) the military installation development authority created in Section 63H-1-201. See Utah Code 11-42-102
Economic promotion activities: means activities that promote economic growth in a commercial area of a local entity, including:
     (19)(a) sponsoring festivals and markets;
     (19)(b) promoting business investment or activities;
     (19)(c) helping to coordinate public and private actions; and
     (19)(d) developing and issuing publications designed to improve the economic well-being of the commercial area. See Utah Code 11-42-102
Equal: means , with respect to biological sex, of the same value. See Utah Code 68-3-12.5
Fixed Rate: Having a "fixed" rate means that the APR doesn't change based on fluctuations of some external rate (such as the "Prime Rate"). In other words, a fixed rate is a rate that is not a variable rate. A fixed APR can change over time, in several circumstances:
- You are late making a payment or commit some other default, triggering an increase to a penalty rate
- The bank changes the terms of your account and you do not reject the change.
- The rate expires (if the rate was fixed for only a certain period of time).
Governing body: means :
     (22)(a) for a county, city, or town, the legislative body of the county, city, or town;
     (22)(b) for a special district, the board of trustees of the special district;
     (22)(c) for a special service district:
          (22)(c)(i) the legislative body of the county, city, or town that established the special service district, if no administrative control board has been appointed under Section 17D-1-301; or
          (22)(c)(ii) the administrative control board of the special service district, if an administrative control board has been appointed under Section 17D-1-301;
     (22)(d) for the military installation development authority created in Section 63H-1-201, the board, as defined in Section 63H-1-102;
     (22)(e) for the Utah Inland Port Authority, created in Section 11-58-201, the board, as defined in Section 11-58-102; and
     (22)(f) for a public infrastructure district, the board of the public infrastructure district as defined in Section 17D-4-102. See Utah Code 11-42-102
Local entity: means :
     (31)(a) a county, city, town, special service district, or special district;
     (31)(b) an interlocal entity as defined in Section 11-13-103;
     (31)(c) the military installation development authority, created in Section 63H-1-201;
     (31)(d) a public infrastructure district under Title 17D, Chapter 4, Public Infrastructure District Act, including a public infrastructure district created by a development authority;
     (31)(e) the Utah Inland Port Authority, created in Section 11-58-201; or
     (31)(f) any other political subdivision of the state. See Utah Code 11-42-102
Property: includes real property and any interest in real property, including water rights and leasehold rights. See Utah Code 11-42-102
Variable Rate: Having a "variable" rate means that the APR changes from time to time based on fluctuations in an external rate, normally the Prime Rate. This external rate is known as the "index." If the index changes, the variable rate normally changes. Also see Fixed Rate.

(1)(a) In an assessment resolution or ordinance, the governing body may, subject to Subsection (1)(b), provide that some or all of the assessment be paid in installments over a period:

(1)(a)(i) not to exceed 20 years from the effective date of the resolution or ordinance, except as provided in Subsection (1)(a)(ii); or

(1)(a)(ii) not to exceed 30 years from the effective date of the resolution, for a resolution adopted by:

(1)(a)(ii)(A) a development authority;

(1)(a)(ii)(B) an infrastructure financing district under Title 17B, Chapter 2a, Part 13, Infrastructure Financing Districts;

(1)(a)(ii)(C) a public infrastructure district created by a development authority under Title 17D, Chapter 4, Public Infrastructure District Act; or

(1)(a)(ii)(D) any other local entity, if the resolution is adopted with the consent of all owners of surface property within the assessment area.

(1)(b) If an assessment resolution or ordinance provides that some or all of the assessment be paid in installments for a period exceeding 10 years from the effective date of the resolution or ordinance, the governing body:

(1)(b)(i) shall make a determination that:

(1)(b)(i)(A) the improvement for which the assessment is made has a reasonable useful life for the full period during which installments are to be paid; or

(1)(b)(i)(B) it would be in the best interests of the local entity and the property owners for installments to be paid for more than 10 years; and

(1)(b)(ii) may provide in the resolution or ordinance that no assessment is payable during some or all of the period ending three years after the effective date of the resolution or ordinance.

(2) An assessment resolution or ordinance that provides for the assessment to be paid in installments may provide that the unpaid balance be paid over the period of time that installments are payable:

(2)(a) in substantially equal installments of principal; or

(2)(b) in substantially equal installments of principal and interest.

(3)

(3)(a) Each assessment resolution or ordinance that provides for the assessment to be paid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balance of the assessment bear interest at a fixed rate, variable rate, or a combination of fixed and variable rates, as determined by the governing body, from the effective date of the resolution or ordinance or another date specified in the resolution or ordinance.

(3)(b) If the assessment is for operation and maintenance costs or for the costs of economic promotion activities:

(3)(b)(i) a local entity may charge interest only from the date each installment is due; and

(3)(b)(ii) the first installment of an assessment shall be due 15 days after the effective date of the assessment resolution or ordinance.

(3)(c) If an assessment resolution or ordinance provides for the unpaid balance of the assessment to bear interest at a variable rate, the assessment resolution or ordinance shall specify:

(3)(c)(i) the basis upon which the rate is to be determined from time to time;

(3)(c)(ii) the manner in which and schedule upon which the rate is to be adjusted; and

(3)(c)(iii) a maximum rate that the assessment may bear.

(4) Interest payable on assessments may include:

(4)(a) interest on assessment bonds;

(4)(b) ongoing local entity costs incurred for administration of the assessment area; and

(4)(c) any costs incurred with respect to:

(4)(c)(i) securing a letter of credit or other instrument to secure payment or repurchase of bonds; or

(4)(c)(ii) retaining a marketing agent or an indexing agent.

(5) Interest imposed in an assessment resolution or ordinance shall be paid in addition to the amount of each installment annually or at more frequent intervals as provided in the assessment resolution or ordinance.

(6)

(6)(a) Except for an assessment for operation and maintenance costs or for the costs of economic promotion activities, a property owner may pay some or all of the entire assessment without interest if paid within 25 days after the assessment resolution or ordinance takes effect.

(6)(b) After the 25-day period stated in Subsection (6)(a), a property owner may at any time prepay some or all of the assessment levied against the owner’s property.

(6)(c) A local entity may require a prepayment of an installment to include:

(6)(c)(i) an amount equal to the interest that would accrue on the assessment to the next date on which interest is payable on bonds issued in anticipation of the collection of the assessment; and

(6)(c)(ii) the amount necessary, in the governing body’s opinion or the opinion of the officer designated by the governing body, to assure the availability of money to pay:

(6)(c)(ii)(A) interest that becomes due and payable on those bonds; and

(6)(c)(ii)(B) any premiums that become payable on bonds that are called in order to use the money from the prepaid assessment installment.

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