73-10d-5 - Bond issues -- Debt not authorized -- Project not a public utility -- Financing as an industrial facility.
73-10d-5. Bond issues -- Debt not authorized -- Project not a public utility --Financing as an industrial facility.
(1) The governing body of any municipality or county may, under Title 11, Chapter 17,the Utah Industrial Facilities and Development Act, and this chapter, issue bonds to finance thecosts of privatization projects within or partially within its own jurisdiction, on behalf of privateowner/operators, all pursuant to contracts and other arrangements provided for in the proceedingsunder which the bonds are issued. Privatization projects shall provide services to one or morepolitical subdivisions, which may include the municipality or county issuing bonds.
(2) All bonds issued under this chapter shall be limited obligations of the municipality orcounty issuing the bonds. Bonds issued under this chapter or interest on them do not constitutenor give rise to a general obligation of the state, the issuer of the bonds, or any other politicalsubdivision, nor are they a charge against the general credit or taxing powers of the state, theissuer, or any other political subdivision. This limitation shall be plainly stated on the face of thebonds. The bonds are not payable from any funds other than those of the municipality or countythat shall be specifically pledged for that purpose in accordance with this chapter and Title 11,Chapter 17, the Utah Industrial and Facilities Development Act.
(3) All expenses incurred in carrying out any provision of this chapter with respect to aprivatization project are payable solely as provided under this chapter, and nothing in this chaptershall be construed to authorize the issuer of bonds to incur indebtedness or liability on behalf of orpayable by the state or any political subdivision.
(4) A privatization project or its private owner/operator is not a "public utility" for anypurpose of Title 54, Chapter 2, with respect to any privatization project or the services providedthereby.
(5) For purposes of Title 11, Chapter 17, the Utah Industrial and Facilities DevelopmentAct, a privatization project is a "project" as defined in Section 11-17-2.
Amended by Chapter 93, 1990 General Session