Utah Code 17B-1-1103. Levy to pay for general obligation bonds
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Terms Used In Utah Code 17B-1-1103
- 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.
- Property: includes both real and personal property. See Utah Code 68-3-12.5
- Special district: means a limited purpose local government entity, as described in Section
17B-1-103 , that operates under, is subject to, and has the powers described in:(31)(a) this chapter; or(31)(b)(31)(b)(i) this chapter; and(31)(b)(ii)(31)(b)(ii)(A) Chapter 2a, Part 1, Cemetery Maintenance District Act;(31)(b)(ii)(B) Chapter 2a, Part 2, Drainage District Act;(31)(b)(ii)(C) Chapter 2a, Part 3, Fire Protection District Act;(31)(b)(ii)(D) Chapter 2a, Part 4, Improvement District Act;(31)(b)(ii)(E) Chapter 2a, Part 5, Irrigation District Act;(31)(b)(ii)(F) Chapter 2a, Part 6, Metropolitan Water District Act;(31)(b)(ii)(G) Chapter 2a, Part 7, Mosquito Abatement District Act;(31)(b)(ii)(H) Chapter 2a, Part 8, Public Transit District Act;(31)(b)(ii)(I) Chapter 2a, Part 9, Service Area Act;(31)(b)(ii)(J) Chapter 2a, Part 10, Water Conservancy District Act;(31)(b)(ii)(K) Chapter 2a, Part 11, Municipal Services District Act; or(31)(b)(ii)(L) Chapter 2a, Part 13, Infrastructure Financing Districts. See Utah Code 17B-1-102- Water conservancy district: means a special district that operates under and is subject to the provisions of this chapter and Chapter 2a, Part 10, Water Conservancy District Act, including an entity that was created and operated as a water conservancy district under the law in effect before April 30, 2007. See Utah Code 17B-1-102
(1)(a) If a district has issued general obligation bonds, or expects to have debt service payments due on general obligation bonds during the current year, the district’s board of trustees may make an annual levy of ad valorem property taxes in order to:(1)(a)(i) pay the principal of and interest on the general obligation bonds;(1)(a)(ii) establish a sinking fund for defaults and future debt service on the general obligation bonds; and(1)(a)(iii) establish a reserve to secure payment of the general obligation bonds.(1)(b) A levy under Subsection (1)(a) is:(1)(b)(i) for a water conservancy district, subject to the limit stated in Section 17B-2a-1006; and(1)(b)(ii) for each other special district, without limitation as to rate or amount.(2)(2)(a) Each district that levies a tax under Subsection (1) shall:(2)(a)(i) levy the tax as a separate and special levy for the specific purposes stated in Subsection (1); and(2)(a)(ii) apply the proceeds from the levy solely for the purpose of paying the principal of and interest on the general obligation bonds, even though the proceeds may be used to establish or replenish a sinking fund under Subsection (1)(a)(ii) or a reserve under Subsection (1)(a)(iii).(2)(b) A levy under Subsection (2)(a) is not subject to a priority in favor of a district obligation in existence at the time the bonds were issued.