17D-1-507 - Guaranteed bonds.
17D-1-507. Guaranteed bonds.
(1) Before a special service district may issue guaranteed bonds:
(a) the special service district shall:
(i) obtain a report:
(A) prepared by:
(I) a qualified, registered architect or engineer; or
(II) a person qualified by experience appropriate to the project proposed to be funded bythe proceeds from the guaranteed bonds;
(B) setting forth:
(I) a description of the project proposed to be funded by the proceeds from theguaranteed bonds;
(II) the estimated or, if available, the actual cost of the project;
(III) the principal amount and date and amount of each stated maturity of:
(Aa) the guaranteed bonds to be issued; and
(Bb) any outstanding guaranteed bonds of the special service district;
(IV) the interest rate or rates of any outstanding guaranteed bonds of the special servicedistrict;
(V) the amount of the annual debt service for each year during the life of all outstandingguaranteed bonds issued by the special service district;
(VI) the estimated amount of the annual debt service for each year during the life of allguaranteed bonds that the special service district intends to issue to finance all or any part of theproject; and
(VII) the date or estimated date that the project will be complete; and
(ii) submit to the Governor's Office of Economic Development:
(A) the report described in Subsection (1)(a)(i);
(B) a copy of each proposed guarantee of the guaranteed bonds, certified by the specialservice district;
(C) a legal opinion indicating that each guarantee, when executed, will be the legal andbinding obligation of the taxpayer executing the guarantee in accordance with the terms of theguarantee; and
(D) evidence satisfactory to the Governor's Office of Economic Development from eachtaxpayer executing a guarantee of the guaranteed bonds as to the financial ability of the taxpayerto perform under the guarantee;
(b) the Governor's Office of Economic Development shall, if it approves the issuance ofthe guaranteed bonds, deliver to the special service district governing body a written statement ofits approval; and
(c) the special service district governing body shall file the written approval statementunder Subsection (1)(b) with the recorder of the county in which the special service district islocated.
(2) The issuance of guaranteed bonds is conditioned upon the approval of special servicedistrict voters at an election held for that purpose as provided in Title 11, Chapter 14, LocalGovernment Bonding Act.
(3) Guaranteed bonds that have been issued and remain outstanding shall be included inthe determination of the debt limit under Subsection 17D-1-502(4) if the bonds by their terms nolonger enjoy the benefit of the guarantee.
(4) On July 1 of each year, the governing body shall file with the department ofcommunity affairs a report certifying:
(a) the total amount of bonds issued by the special service district and other debt thenoutstanding and subject to the debt limit of Subsection 17D-1-502(4);
(b) the total amount of guaranteed bonds then outstanding and not subject to the debtlimit of Subsection 17D-1-502(4); and
(c) the total amount of guaranteed bonds that, during the preceding 12 months,discontinued to enjoy the benefit of the guarantee.
Enacted by Chapter 360, 2008 General Session