11-17-4 - Bonds -- Limitations -- Form and provisions -- Sale -- Negotiability.
11-17-4. Bonds -- Limitations -- Form and provisions -- Sale -- Negotiability.
(1) All bonds issued by a municipality or county under this chapter shall be limitedobligations of the municipality or county. Bonds and interest coupons issued under this chaptermay not constitute nor give rise to a general obligation or liability of the municipality or countyor a charge against its general credit or taxing powers. Such limitation shall be plainly statedupon the face of such bonds.
(2) The bonds referred to in Subsection (1) may be authorized by resolution of thegoverning body, and may:
(a) be executed and delivered at any time and from time to time;
(b) be in such form and denominations;
(c) be of such tenor;
(d) be in registered or bearer form either as to principal or interest or both;
(e) be payable in such installments and at such time or times as the governing body maydeem advisable;
(f) be payable at such place or places either within or without the state of Utah;
(g) bear interest at such rate or rates, payable at such place or places, and evidenced insuch manner;
(h) be redeemable prior to maturity, with or without premium;
(i) be convertible into equity positions in any asset or assets acquired or developed withthe proceeds of the sale of the bonds; and
(j) contain such other provisions not inconsistent with this chapter as shall be deemed forthe best interests of the municipality or county and provided for in the proceedings of thegoverning body under which the bonds shall be authorized to be issued.
(3) Any bonds issued under this chapter may be sold at public or private sale in suchmanner and at such time or times as may be determined by the governing body to be mostadvantageous. The municipality or county may pay all expenses, premiums, and commissionswhich the governing body may deem necessary or advantageous in connection with theauthorization, sale, and issuance of such bonds from the proceeds of the sale of such bonds orfrom the revenues of the project or projects.
(4) All bonds issued under this chapter and all interest coupons applicable thereto shallbe construed to be negotiable instruments, despite the fact that they are payable solely from aspecified source.
Amended by Chapter 378, 2010 General Session