11-32-4 - Assignment of rights to receive delinquent tax receivables to financing authority -- Documentation -- Agreement.
11-32-4. Assignment of rights to receive delinquent tax receivables to financingauthority -- Documentation -- Agreement.
(1) At any time following the date of delinquency for property in Title 59, Chapter 2, Part13, the governing body of any county desiring to implement the provisions of this chapter byassigning the delinquent tax receivables of the participant members to its authority shall ascertainthe amount of delinquent taxes owed to the participant members within the county. Afterascertaining the amount of delinquent tax receivables owed, the governing body of the countymay, as agent for the other participant members, assign the rights of the participant members toreceive the delinquent tax receivables, in whole or in part, as designated by the governing bodyof the county, to the financing authority. The assignment of rights described above shall take theform of an assignment of an account receivables. The purchase price paid by the authority maybe equal to, greater than, or less than the amount of the delinquent tax receivables sold to theauthority. The documentation by which the transfer of the delinquent tax receivables are madeshall contain the following:
(a) the tax year or years for which the delinquent taxes owing were levied;
(b) the amount of taxes, interest, and penalties due to the participant members withrespect to the tax years as of the date the accounts are assigned;
(c) the tax identification numbers or other descriptions of the specific properties withrespect to which the delinquent tax receivables are being assigned;
(d) the interest rate at which the delinquent taxes subject to the assignment bear interestpursuant to Section 59-2-1331;
(e) the discount or premium, if any, at which the account is assigned;
(f) a certificate representing the transfer of the rights of the county and the otherparticipant members to receive the amounts due and owing the county and the other participantmembers with respect to the delinquent tax receivables transferred; and
(g) certification by the governing body of the county that all amounts received by thecounty with respect to the delinquent taxes, interest, and penalties assigned to the authority andowed to the county and the other participant members, for the tax years specified, upon thespecified property, and the additional interest and penalties to accrue on the delinquent amounts,shall be deposited upon receipt into a special fund of the county created for this purpose and shallbe used solely to pay the amounts falling due to the financing authority as specified in theassignment agreement.
(2) The assignment agreement shall contain a statement to the effect that any amountsfalling due under it are payable solely from a special fund into which the county shall pay theamounts collected with respect to the delinquent tax receivables pledged and shall state thatunder no circumstances may the county or any of the other participant members be required touse any other funds, property, or money of the county or the other participant members or to levyany tax to satisfy amounts due under the agreement.
Amended by Chapter 181, 1995 General Session