Utah § 11-42-606 - Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.

Full text of Utah Utah Code § 11-42-606 — Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds., with citation guidance and answers to common questions.

§ 11-42-606. Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.

11-42-606.  Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.
(1) Assessment bonds are not a general obligation of the local entity that issues them.
(2) A local entity that issues assessment bonds:
(a) may not be held liable for payment of the bonds except to the extent of:
(i) funds created and received from assessments against which the bonds are issued;
(ii) improvement revenues; and
(iii) the local entity's guaranty fund under Section 11-42-701 or, if applicable, reserve fund under Section 11-42-702; and
(b) is responsible for:
(i) the lawful levy of all assessments;
(ii) the collection and application of improvement revenues, as provided in this chapter;
(iii) the creation and maintenance of a guaranty fund or, if applicable, a reserve fund; and
(iv) the faithful accounting, collection, settlement, and payment of:
(A) assessments and improvement revenues; and
(B) money in a guaranty fund or, if applicable, a reserve fund.
(3) If a local entity illegally assesses property that is exempt from assessment, the local entity:
(a) is liable to the holders of assessment bonds for the payment of the illegal assessment; and
(b) shall pay the amount for which it is liable under Subsection (3)(a) from the local entity's general fund or other legally available money.


Enacted by Chapter 329, 2007 General Session

Source: official Utah text · Last verified 2026-08-27

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Frequently Asked Questions About Utah § 11-42-606

What does Utah Code § 11-42-606 cover?

Section 11-42-606 ("Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.

How do I cite Utah § 11-42-606?

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Is this the official text of Utah law?

No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.

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