Utah Code 17B-1-902.1. Interest — Collection of administrative costs
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Terms Used In Utah Code 17B-1-902.1
- 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
- Interest rate: The amount paid by a borrower to a lender in exchange for the use of the lender's money for a certain period of time. Interest is paid on loans or on debt instruments, such as notes or bonds, either at regular intervals or as part of a lump sum payment when the issue matures. Source: OCC
- 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(1)(a) A special district may charge interest on a past due fee or past due charge.(1)(b) If a special district charges interest as described in Subsection (1)(b), the special district shall calculate the interest rate for a calendar year:(1)(b)(i) based on the federal short-term rate determined by the secretary of the treasury under Section 6621, Internal Revenue Code, in effect for the preceding fourth calendar quarter; and(1)(b)(ii) as simple interest at the rate of eighteen percentage points above the federal short-term rate.(1)(c) If a special district charges interest on a past due fee collected by the special district, regardless of whether the fee is certified, the special district may charge the interest monthly but may not compound the interest more frequently than annually.(2)(2)(a) A special district may charge and collect only one of the following:(2)(a)(i) a one-time penalty charge not to exceed 8% for a past-due fee; or(2)(a)(ii) an administrative cost for some or all of the following:(2)(a)(ii)(A) the collection cost of a past due fee or charge;(2)(a)(ii)(B) reasonable attorney fees actually incurred for collection and foreclosure costs, if applicable; and(2)(a)(ii)(C) any other cost.(2)(b) A special district may not charge interest on an administrative cost.