Utah Code 17D-2-401. Project lease agreements
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(1) A local building authority and its creating local entity may enter into a lease agreement with respect to a project that the local building authority:
Terms Used In Utah Code 17D-2-401
- Bond: includes a bond, note, or other instrument issued under this chapter evidencing an indebtedness of a local building authority. See Utah Code 17D-2-102
- Creating local entity: means the local entity that creates or created the local building authority. See Utah Code 17D-2-102
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Local entity: means a county, city, town, school district, special district, or special service district. See Utah Code 17D-2-102
- Project: means an improvement, facility, property, or appurtenance to property that a local entity is permitted under law to own or acquire, whether located inside or outside the local entity's boundary, including:(8)(a) a public building or other structure of any kind; and(8)(b) a joint or partial interest in the improvement, facility, property, or appurtenance to property. See Utah Code 17D-2-102
- Property: includes both real and personal property. See Utah Code 68-3-12.5
(1)(a) has constructed, acquired, improved, or extended on behalf of the creating local entity; or(1)(b) will construct, acquire, improve, or extend on behalf of the creating local entity.
(2)
(2)(a) A local building authority and its creating local entity may enter into a lease agreement before the local building authority’s acquisition of a site or construction of the project.
(2)(b) Each lease agreement described in Subsection (2)(a) shall:
(2)(b)(i) provide that the creating local entity is not required to make a lease payment until acquisition or construction of the project is completed; and
(2)(b)(ii) require the local building authority to furnish or cause the construction contractor to furnish a bond satisfactory to the creating local entity, conditioned upon:
(2)(b)(ii)(A) final completion of the project as expeditiously as reasonably possible from the date of the execution of the lease agreement; and
(2)(b)(ii)(B) delivery of possession of the project to the creating local entity free and clear of all liens and encumbrances, except:
(2)(b)(ii)(B)(I) taxes, liens, and encumbrances on the local building authority’s interest in the leased property; and
(2)(b)(ii)(B)(II) easements and restrictions that the creating local entity accepts.