(1) Each local entity that issues refunding assessment bonds shall adopt a resolution or ordinance amending the assessment resolution or assessment ordinance previously adopted.
lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Utah Code 11-42-608

  • 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 lien: means a lien on property within an assessment area that arises from the levy of an assessment, as provided in Section 11-42-501. See Utah Code 11-42-102
  • Assessment ordinance: means an ordinance 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
  • 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
  • Benefitted property: means property within an assessment area that directly or indirectly benefits from improvements, operation and maintenance, or economic promotion activities. See Utah Code 11-42-102
  • Bonds: means assessment bonds and refunding assessment bonds. See Utah Code 11-42-102
  • Escrow: Money given to a third party to be held for payment until certain conditions are met.
  • 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
  • Incidental refunding costs: means any costs of issuing refunding assessment bonds and calling, retiring, or paying prior bonds, including:
         (27)(a) legal and accounting fees;
         (27)(b) charges of financial advisors, escrow agents, certified public accountant verification entities, and trustees;
         (27)(c) underwriting discount costs, printing costs, the costs of giving notice;
         (27)(d) any premium necessary in the calling or retiring of prior bonds;
         (27)(e) fees to be paid to the local entity to issue the refunding assessment bonds and to refund the outstanding prior bonds;
         (27)(f) any other costs that the governing body determines are necessary and proper to incur in connection with the issuance of refunding assessment bonds; and
         (27)(g) any interest on the prior bonds that is required to be paid in connection with the issuance of the refunding assessment bonds. See Utah Code 11-42-102
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • 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
  • Mailing address: means :
         (33)(a) a property owner's last-known address using the name and address appearing on the last completed real property assessment roll of the county in which the property is located; and
         (33)(b) if the property is improved property:
              (33)(b)(i) the property's street number; or
              (33)(b)(ii) the post office box, rural route number, or other mailing address of the property, if a street number has not been assigned. See Utah Code 11-42-102
  • Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
  • Prior bonds: means the assessment bonds that are refunded in part or in whole by refunding assessment bonds. 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
  • Reduced payment obligation: means the full obligation of an owner of property within an assessment area to pay an assessment levied on the property after the assessment has been reduced because of the issuance of refunding assessment bonds, as provided in Section 11-42-608. See Utah Code 11-42-102
  • Refunding assessment bonds: means assessment bonds that a local entity issues under Section 11-42-607 to refund, in part or in whole, assessment bonds. See Utah Code 11-42-102
  • 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) Each amending resolution or ordinance under Subsection (1) shall:

     (2)(a) reduce, as determined by the local entity’s governing body:

          (2)(a)(i) the assessments levied under the previous resolution or ordinance;
          (2)(a)(ii) the interest payable on the assessments levied under the previous resolution or ordinance; or
          (2)(a)(iii) both the assessments levied under the previous resolution or ordinance and the interest payable on those assessments;
     (2)(b) allocate the reductions under Subsection (2)(a) so that the then unpaid assessments levied against benefitted property within the assessment area and the unpaid interest on those assessments receive a proportionate share of the reductions;
     (2)(c)

          (2)(c)(i) state the amounts of the reduced payment obligation for each property assessed in the prior resolution or ordinance; or
          (2)(c)(ii) incorporate by reference a revised assessment list approved by the governing body containing the reduced payment obligations; and
     (2)(d) state the effective date of any reduction in the assessment levied in the prior resolution or ordinance.
(3) A resolution or ordinance under Subsection (2) is not required to describe each block, lot, part of block or lot, tract, or parcel of property assessed.
(4) Each reduction under Subsection (2)(a) shall be the amount by which the principal or interest or both payable on the refunding assessment bonds, after accounting for incidental refunding costs associated with the refunding assessment bonds, is less than the amount of principal or interest or both payable on the prior bonds.
(5) A reduction under Subsection (2)(a) does not apply to an assessment or interest paid before the reduction.
(6) A resolution or ordinance under Subsection (2) may not become effective before the date when all principal, interest, any redemption premium on the prior bonds, and any advances made under Subsection 11-42-607(5)(a) are fully paid or legally considered to be paid.
(7)

     (7)(a) At least 21 days before the first payment of a reduced assessment becomes due, each local entity shall provide notice of the reduced payment obligations resulting from adoption of a resolution or ordinance under Subsection (2) by mailing, postage prepaid, a notice to each owner of benefitted property within the assessment area at the owner’s mailing address.
     (7)(b) Each notice under Subsection (7)(a) shall:

          (7)(b)(i) identify the property subject to the assessment; and
          (7)(b)(ii) state the amount of the reduced payment obligations that will be payable after the applicable date stated in the resolution or ordinance under Subsection (1).
     (7)(c) A notice under Subsection (7)(a) may:

          (7)(c)(i) contain other information that the governing body considers appropriate; and
          (7)(c)(ii) be included with any other notice regarding the payment of an assessment and interest that the local entity sends to property owners in the assessment area within the time and addressed as required under Subsection (7)(a).
     (7)(d) The validity of a resolution or ordinance under Subsection (1) is not affected by:

          (7)(d)(i) a local entity’s failure to provide notice as required under this Subsection (7); or
          (7)(d)(ii) a defect in the content of the notice or the manner or time in which the notice was provided.
     (7)(e) Whether or not notice under this Subsection (7) is properly given, no other notice is required to be given to owners of property within an assessment area in connection with the issuance of refunding assessment bonds.
(8) Except for the amount of reduction to a prior assessment or interest on a prior assessment, neither the issuance of refunding assessment bonds nor the adoption of a resolution or ordinance under Subsection (1) affects:

     (8)(a) the validity or continued enforceability of a prior assessment or interest on the assessment; or
     (8)(b) the validity, enforceability, or priority of an assessment lien.
(9) Each reduction of a prior assessment and the interest on the assessment shall continue to exist in favor of the refunding assessment bonds.
(10) Even after payment in full of the prior bonds that are refunded by refunding assessment bonds, an assessment lien continues to exist to secure payment of the reduced payment obligations, the penalties and costs of collection of those obligations, and the refunding assessment bonds in the same manner, to the same extent, and with the same priority as the assessment lien.
(11) A lien securing a reduced payment obligation from which refunding assessment bonds are payable and by which the bonds are secured is subordinate to an assessment lien securing the original or prior assessment and prior bonds until the prior bonds are paid in full or legally considered to be paid in full.
(12) Unless prior bonds are paid in full simultaneously with the issuance of refunding assessment bonds, the local entity shall:

     (12)(a) irrevocably set aside the proceeds of the refunding assessment bonds in an escrow or other separate account; and
     (12)(b) pledge that account as security for the payment of the prior bonds, refunding assessment bonds, or both.
(13) This part applies to all refunding assessment bonds:

     (13)(a) whether already issued or yet to be issued; and
     (13)(b) even though the prior bonds they refunded were issued under prior law, whether or not that law is currently in effect.
  Previous section
Next section  
 Part 6 Contents