Utah Code 17D-2-403. Provisions that a lease agreement may contain
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(1) A lease agreement between a local building authority and its creating local entity may:
Terms Used In Utah Code 17D-2-403
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- 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
- 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
(1)(a) provide that the creating local entity, as part of the lease payments for the leased property:(1)(a)(i) pay all taxes and assessments levied against or on account of the leased property or rentals from it;(1)(a)(ii) maintain insurance on the leased property for the benefit of the local building authority and the holders of the local building authority’s bonds; and(1)(a)(iii) assume all responsibility for any repair, replacement, alteration, or improvement to the leased property during the term of the lease agreement; and(1)(b) authorize the local entity to sublease all or specified portions of a project to:(1)(b)(i) the state;(1)(b)(ii) another local entity; or(1)(b)(iii) a private party, including a nonprofit corporation, if the local building authority or local entity:(1)(b)(iii)(A) intends to own the project throughout the useful life of the project; and(1)(b)(iii)(B) determines that the local building authority or local entity’s ownership of the project furthers a legitimate public purpose.
(2) A local entity that subleases some or all of a project under Subsection (1)(b) continues to be responsible for lease payments due under the lease agreement with the local building authority.