(1) Nothing in this part may be construed to require:

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Terms Used In Utah Code 17D-2-506

  • 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
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage: means any instrument under which property may be encumbered as security for an obligation, including a mortgage, trust deed, indenture, pledge, assignment, security agreement, and financing statement. See Utah Code 17D-2-102
  • 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.
  • 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) the state or any political subdivision of the state to pay a bond issued under this part;
     (1)(b) the state or, except the creating local entity, any political subdivision of the state to pay any rent or lease payment due to a local building authority under the terms of a lease agreement; or
     (1)(c) the creating local entity to appropriate money to pay:

          (1)(c)(i) principal of or interest on bonds issued by a local building authority; or
          (1)(c)(ii) the lease payments under a lease agreement with the local building authority.
(2) A breach of a mortgage or a covenant or agreement in a mortgage may not impose a general obligation or liability upon or a charge against:

     (2)(a) the creating local entity; or
     (2)(b) the general credit or taxing power of the state or any political subdivision of the state.