Utah Code 11-42-503. Local entity payments to avoid a default in local entity obligations — Reimbursement of payments when property sold at tax or foreclosure sale
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(1) To avoid a default in the payment of outstanding local entity obligations, a local entity may pay:
Terms Used In Utah Code 11-42-503
- Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
- Guaranty fund: means the fund established by a local entity under Section
11-42-701 . 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 Section63H-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 Section11-58-201 ; 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
- Reserve fund: means a fund established by a local entity under Section
11-42-702 . See Utah Code 11-42-102(1)(a) the delinquent amount due, plus interest, penalties, and costs;(1)(b) the amounts described in Subsection (1)(a) and the full balance of an assessment, if accelerated; or(1)(c) any part of an assessment or an installment of an assessment that becomes due during the redemption period.
(2) A local entity may:
(2)(a) pay the amounts under Subsection (1) from a guaranty fund or a reserve fund, or from any money legally available to the local entity; and
(2)(b) charge the amounts paid against the delinquent property.
(3)
(3)(a) Upon the tax sale or foreclosure of the property charged as provided in Subsection (2):
(3)(a)(i) all amounts that the local entity paid shall be included in the sale price of the property recovered in the sale; and
(3)(a)(ii) the local entity’s guaranty fund, reserve fund, or other source of money paid under Subsection (2)(a), as the case may be, shall be reimbursed for those amounts.
(3)(b) If the property charged as provided in Subsection (2) is sold to the local entity at the tax sale or foreclosure and additional assessment installments become due, the local entity:
(3)(b)(i) may pay the additional installments from the guaranty fund or reserve fund, as the case may be, or from any legally available money;
(3)(b)(ii) shall recover, in a sale of the property, the amount of the installments paid; and
(3)(b)(iii) shall reimburse the guaranty fund or reserve fund when the property is sold.