17D-1-502 - General obligation bonds. - Utah Statutes

17D-1-502. General obligation bonds.
(1) Except as provided in Subsection (3), if a special service district intends to issuegeneral obligation bonds, the special service district shall first obtain the approval of specialservice district voters for issuance of the bonds at an election held for that purpose as provided inTitle 11, Chapter 14, Local Government Bonding Act.
(2) General obligation bonds shall be secured by a pledge of the full faith and credit ofthe special service district.
(3) A special service district may issue refunding general obligation bonds, as providedin Title 11, Chapter 27, Utah Refunding Bond Act, without obtaining voter approval.
(4) (a) A special service district may not issue general obligation bonds if the issuance ofthe bonds will cause the outstanding principal amount of all of the special service district'sgeneral obligation bonds to exceed the amount that results from multiplying the fair market valueof the taxable property within the special service district, as determined under Subsection11-14-301(3)(b), by .12.
(b) Bonds or other obligations of a special service district that are not general obligationbonds are not included in the limit stated in Subsection (4)(a).
(5) A special service district may not be considered to be a municipal corporation forpurposes of the debt limitation of the Utah Constitution Article XIV, Section 4.
(6) Bonds issued by an administrative or legal entity created under Title 11, Chapter 13,Interlocal Cooperation Act, may not be considered to be bonds of a special service district thatparticipates in the agreement creating the administrative or legal entity.

Enacted by Chapter 360, 2008 General Session