53B-21-112 - Financing projects and buildings -- Security instruments -- Terms. - Utah Statutes

53B-21-112. Financing projects and buildings -- Security instruments -- Terms.
(1) In connection with the financing of any project or building under this chapter, theboard, on behalf of an institution of higher education, may grant a purchase money mortgage,trust deed, or other security device pledging any land, buildings, furnishings, equipment, or otherfacilities to be acquired or constructed and paid for from the proceeds of the financing.
(2) The rights and remedies available in the event of a default to the mortgagee, trustee,or lender shall be as agreed upon between the board and the lender and contained in thedocument.
(3) In making any agreements, the board does not have the power to obligate itself or thestate, except with respect to: (a) the project; (b) the building and the application of the revenuesfrom it; (c) the revenues from any special fund pledged to repay it; (d) the proceeds of any advalorem tax; or (e) any appropriations from the Legislature of the state.
(4) Any purchase money mortgage, trust deed, or other security device made or grantedby the board to secure the loan or other method of financing may also provide that in the event ofa default in payment or the violation of any agreement, the mortgage, trust deed, or securitydevice may be foreclosed or otherwise realized in any manner permitted by law. However, nodeficiency judgment shall lie in any event and the breach of the agreement does not impose anygeneral obligation or liability upon the board, the state, the proceeds of ad valorem taxes, orappropriations from the Legislature.
(5) The purchase money mortgage, trust deed, or other security device may also providethat any mortgagee, trustee, lender, or the holder of any evidence of indebtedness secured by thesecurity instrument may become the purchaser at any foreclosure sale, if the highest bidder.

Enacted by Chapter 167, 1987 General Session