Utah Code 72-2-204. Loan program procedures — Repayment
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(1) A public entity may obtain an infrastructure loan from the department, upon approval by the commission, by entering into a loan contract with the department secured by legally issued bonds, notes, or other evidence of indebtedness validly issued under state law, including pledging all or any portion of a revenue source controlled by the public entity to the repayment of the loan.
Terms Used In Utah Code 72-2-204
- Commission: means the Transportation Commission created under Section 72-1-301. See Utah Code 72-1-102
- Contract: A legal written agreement that becomes binding when signed.
- Damages: Money paid by defendants to successful plaintiffs in civil cases to compensate the plaintiffs for their injuries.
- Department: means the Department of Transportation created in Section 72-1-201. See Utah Code 72-1-102
- Equitable: Pertaining to civil suits in "equity" rather than in "law." In English legal history, the courts of "law" could order the payment of damages and could afford no other remedy. See damages. A separate court of "equity" could order someone to do something or to cease to do something. See, e.g., injunction. In American jurisprudence, the federal courts have both legal and equitable power, but the distinction is still an important one. For example, a trial by jury is normally available in "law" cases but not in "equity" cases. Source: U.S. Courts
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Fund: means the State Infrastructure Bank Fund created under Section 72-2-202. See Utah Code 72-2-201
- Highway: means any public road, street, alley, lane, court, place, viaduct, tunnel, culvert, bridge, or structure laid out or erected for public use, or dedicated or abandoned to the public, or made public in an action for the partition of real property, including the entire area within the right-of-way. See Utah Code 72-1-102
- Infrastructure loan: means a loan of fund money to finance a transportation project or publicly owned infrastructure project. See Utah Code 72-2-201
- Public entity: means a state agency, county, municipality, special district, special service district, an intergovernmental entity organized under state law, or the military installation development authority created in Section 63H-1-201. See Utah Code 72-2-201
- Publicly owned infrastructure project: means a project to improve sewer or water infrastructure that is owned by a public entity. See Utah Code 72-2-201
- State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5
(2) A loan or assistance from the fund shall bear interest at a rate not to exceed .5% above bond market interest rates available to the state.
(3) A loan shall be repaid no later than 15 years from the date the department issues the loan to the borrower, with repayment commencing no later than:
(3)(a) when the project is completed; or
(3)(b) in the case of a highway project, when the facility has opened to traffic.
(4) The public entity shall repay the infrastructure loan in accordance with the loan contract from any of the following sources:
(4)(a) transportation project or publicly owned infrastructure project revenues, including special assessment revenues;
(4)(b) general funds of the public entity;
(4)(c) money withheld under Subsection (7); or
(4)(d) any other legally available revenues.
(5) An infrastructure loan contract with a public entity may provide that a portion of the proceeds of the loan may be applied to fund a reserve fund to secure the repayment of the loan.
(6) Before obtaining an infrastructure loan, a county or municipality shall:
(6)(a) publish its intention to obtain an infrastructure loan at least once in accordance with the publication of notice requirements under Section 11-14-316; and
(6)(b) adopt an ordinance or resolution authorizing the infrastructure loan.
(7)
(7)(a) If a public entity fails to comply with the terms of its infrastructure loan contract, the department may seek any legal or equitable remedy to obtain compliance or payment of damages.
(7)(b) If a public entity fails to make infrastructure loan payments when due, the state shall, at the request of the department, withhold an amount of money due to the public entity and deposit the withheld money in the fund to pay the amounts due under the contract.
(7)(c) The department may elect when to request the withholding of money under this Subsection (7).
(8) All loan contracts, bonds, notes, or other evidence of indebtedness securing the loan contracts shall be held, collected, and accounted for in accordance with Section 63B-1b-202.