63C-7-301 - Bond authorized -- Payment -- Security -- Liability -- Purpose -- Exemption from certain taxes.
63C-7-301. Bond authorized -- Payment -- Security -- Liability -- Purpose --Exemption from certain taxes.
(1) The Utah Communications Agency Network may:
(a) issue bonds from time to time for any of its corporate purposes provided in Section63C-7-102;
(b) issue refunding bonds for the purpose of paying or retiring bonds previously issued byit;
(c) issue bonds on which the principal and interest are payable:
(i) exclusively from the income, purchase or lease payments, and revenues of all or aportion of the communications network; or
(ii) from its revenues generally.
(2) Any bonds issued by the Utah Communications Agency Network may be additionallysecured by a pledge of any loan, lease, grant, agreement, or contribution, in whole or in part,from the federal government or other source, or a pledge of any income or revenue of the UtahCommunications Agency Network.
(3) The officers of the Utah Communications Agency Network and any person executingthe bonds are not liable personally on the bonds.
(4) (a) The bonds and other obligations of the Utah Communications Agency Networkare not a debt of any member or state representative of the Utah Communications AgencyNetwork, and do not constitute indebtedness for purposes of any constitutional or statutory debtlimitation or restrictions.
(b) The face of the bonds and other obligations shall state the provisions of Subsection(4)(a).
(5) Any bonds of the Utah Communications Agency Network shall be revenueobligations, payable solely from the proceeds, revenues, or purchase and lease payments receivedby the Utah Communications Agency Network for the communications network.
(6) The full faith and credit of any member or state representative may not be pledgeddirectly or indirectly for the payment of the bonds.
(7) A member or state representative may not incur any pecuniary liability under thischapter until it enters into a service contract, lease, or other financing obligation with the UtahCommunications Agency Network. Once a member enters into a service contract, lease, or otherfinancing obligation with the Utah Communications Agency Network, the member shall beobligated to the Utah Communications Agency Network as provided in that contract, lease, orfinancing obligation.
(8) A bond or obligation may not be made payable out of any funds or properties otherthan those of the Utah Communications Agency Network.
(9) Bonds of the Utah Communications Agency Network are:
(a) declared to be issued for an essential public and governmental purpose by publicinstrumentalities; and
(b) together with interest and income, exempt from all taxes, except the corporatefranchise tax.
(10) The provisions of this chapter exempting the properties of the Utah CommunicationsAgency Network and its bonds and interest and income on them from taxation shall be consideredpart of the contract for the security of bonds and have the force of contract, by virtue of this partand without the necessity of this being restated in the bonds, between the bondholders, including
all transferees of the bonds, and the Utah Communications Agency Network and the state.
Enacted by Chapter 136, 1997 General Session