17D-2-505 - Security for local building authority bonds. - Utah Statutes

17D-2-505. Security for local building authority bonds.
(1) The principal of and interest on bonds that a local building authority issues under thispart:
(a) shall be secured by a pledge and assignment of the revenue that the local buildingauthority receives under its lease agreement with respect to the project that was financed with thebond proceeds;
(b) may be secured by:
(i) a mortgage covering some or all of the project;
(ii) a pledge and assignment of the lease agreement for that project;
(iii) money held in a reserve fund; and
(iv) any other security device with respect to the project that the local building authorityconsiders most advantageous.
(2) A proceeding under which a mortgage is given to secure the bonds of a local buildingauthority may contain any agreement or provision listed in Section 17D-2-503 that could becontained in a proceeding under which a local building authority is authorized to issue bondsunder this part.
(3) A mortgage to secure bonds issued by a local building authority under this part mayprovide that:
(a) upon default in its payment or the violation of any covenant or agreement containedin the mortgage, the mortgage may be foreclosed in the manner permitted by law; and
(b) the trustee or holder of any bond secured by the mortgage may become the purchaserat a foreclosure sale, if the trustee or holder is the highest bidder.

Enacted by Chapter 360, 2008 General Session