Full text of Utah Utah Code § 11-42-702 — Reserve fund., with citation guidance and answers to common questions.
§ 11-42-702. Reserve fund.
11-42-702.
Reserve fund.
(1)
In lieu of creating and funding a guaranty fund under Section 11-42-701 for an issue of assessment bonds or refunding assessment bonds, a local entity may establish a reserve fund to secure the issue.
(2)
If a local entity establishes a reserve fund under this section:
(a)
the bonds secured by the reserve fund are not secured by a guaranty fund under Section 11-42-701;
(b)
the local entity is not required to fund a guaranty fund under Section 11-42-701 for those bonds; and
(c)
unless otherwise provided in this part or in the proceedings authorizing the issuance of bonds, the provisions of this part regarding a guaranty fund have no application to the bonds that are secured by the reserve fund.
(3)
Each local entity that establishes a reserve fund shall:
(a)
fund and replenish the reserve fund in the amounts and manner provided in the proceedings authorizing the issuance of the bonds that are secured by the reserve fund; and
Subject to Subsection (4)(b), a local entity may replenish a reserve fund under this section by any of the methods described in Subsection 11-42-701(1)(b).
(b)
The proceedings authorizing the issuance of assessment bonds or refunding assessment bonds shall provide that if a local entity uses any of the methods described in Subsection 11-42-701(1)(b) to replenish a reserve fund, the local entity shall be reimbursed, with interest at a rate that the local entity determines, with money that the local entity receives from foreclosing on delinquent property.
(5)
Upon the retirement of bonds secured by a reserve fund, the local entity shall:
(a)
terminate the reserve fund; and
(b)
disburse all remaining money in the fund as provided in the proceedings authorizing the issuance of the bonds.
Section 11-42-702 ("Reserve fund.") 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 § 11-42-702?
A common citation format is "Utah Code § 11-42-702" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
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.
How does Utah § 11-42-702 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
