63H-2-402 - Sources from which an authority bond may be made payable -- Authority powers regarding authority bond. - Utah Statutes

63H-2-402. Sources from which an authority bond may be made payable --Authority powers regarding authority bond.
(1) The principal and interest on an authority bond may be made payable from:
(a) the income and revenues related to a qualifying transmission project financed with theproceeds of the authority bond;
(b) the income and revenues from a public or private source under Subsection63H-2-201(2)(c);
(c) a contribution, loan, grant, or other financial assistance from a public entity or othersource under Subsection 63H-2-201(2)(d);
(d) authority revenues generally; or
(e) money derived from a combination of the methods listed in Subsections (1)(a)through (d).
(2) In connection with the issuance of an authority bond, the authority may:
(a) pledge all or any part of the authority's gross or net revenues to which the authority:
(i) has a right that exists at issuance of the authority bond; or
(ii) may have a right that comes into existence after issuance of the authority bond; and
(b) even if a covenant or action is not specifically enumerated in this chapter, make acovenant or take an action that:
(i) may be necessary, convenient, or desirable to secure the authority bond; or
(ii) except as otherwise provided in this chapter, will tend to make the authority bondmore marketable.
(3) A member of the board or other person executing an authority bond is not liablepersonally on the authority bond.
(4) (a) An authority bond:
(i) is not a general obligation or liability of the state or any of the state's politicalsubdivisions; and
(ii) does not constitute a charge against the general credit or taxing powers of the state orany of the state's political subdivisions.
(b) An authority bond is not payable out of money or properties other than those of theauthority pledged for the payment of the bond.
(c) A community, the state, or a political subdivision of the state may not be liable on anauthority bond.
(d) An authority bond does not constitute indebtedness within the meaning of aconstitutional or statutory debt limitation.
(5) An authority bond is fully negotiable.
(6) An authority bond is:
(a) issued for an essential public and governmental purpose; and
(b) together with interest on the authority bond and income from the authority bond,exempt from state taxes except the corporate franchise tax.
(7) Nothing in this section may be construed to limit the right of an obligee to pursue aremedy for the enforcement of a pledge or lien given under this part by the authority on theauthority's rents, fees, grants, properties, or revenues.

Enacted by Chapter 378, 2009 General Session