Utah § 42a-404 - Reducing assessments after issuance of refunding assessment bonds -- Retroactive effect.
Full text of Utah Utah Code § 42a-404 — Reducing assessments after issuance of refunding assessment bonds -- Retroactive effect., with citation guidance and answers to common questions.
§ 42a-404. Reducing assessments after issuance of refunding assessment bonds -- Retroactive effect.
Effective 3/28/2017 11-42a-404.
Reducing assessments after issuance of refunding assessment bonds -- Retroactive effect.
(1)
Each local entity that issues a refunding assessment bond shall adopt a resolution or ordinance amending the previously adopted energy assessment resolution or ordinance that:
(a)
reduces, as determined by the local entity's governing body:
(i)
the assessments levied under the previous resolution or ordinance;
(ii)
the interest payable on the assessments levied under the previous resolution or ordinance; or
(iii)
both the assessments levied under the previous resolution or ordinance and the interest payable on those assessments;
(b)
allocates the reductions under Subsection (1)(a) so the then unpaid assessments levied against benefitted property within the assessment area and the unpaid interest on those assessments receive a proportionate share of the reductions;
(c)
states the amounts of the reduced payment obligation for each property assessed in the prior resolution or ordinance; and
(d)
states the effective date of any reduction in the assessment levied in the prior resolution or ordinance.
(2)
In a resolution or ordinance described in Subsection (1), the local entity is not required to describe each block, lot, part of a block or lot, tract, or parcel of property assessed.
(3)
The local entity shall ensure that each reduction under Subsection (1)(a) is equal to the amount by which the principal, interest, or combined principal and interest payable on the refunding assessment bond, after accounting for incidental refunding costs associated with the refunding assessment bond, is less than the amount of principal, interest, or combined principal and interest payable on the prior bonds.
(4)
A reduction under Subsection (1)(a) does not apply to an assessment or interest paid before the reduction.
(5)
A resolution or ordinance under Subsection (1) may not become effective before the date when any principal, interest, redemption premium on the prior bonds, and advances under Subsection 11-42-607(5)(a) are fully paid or legally considered to be paid.
(6)
Except for the amount of reduction to a prior assessment or interest on a prior assessment, neither the issuance of a refunding assessment bond nor the adoption of a resolution or ordinance under Subsection (1) affects:
(a)
the validity or continued enforceability of a prior assessment or interest on the assessment; or
(b)
the validity, enforceability, or priority of an energy assessment lien.
(7)
Each reduction of a prior assessment and the interest on the assessment continues to exist in favor of the refunding assessment bonds.
(8)
Even after payment in full of the prior bonds that a refunding assessment bond refunds, an energy assessment lien continues to exist to secure payment of:
(a)
the reduced payment obligations;
(b)
the penalties and costs of collection of those obligations; and
(c)
the refunding assessment bond.
(9)
A lien securing a reduced payment obligation from which a refunding assessment bond is payable and by which the bond is secured is subordinate to an energy assessment lien that secures the original or prior assessment and prior bonds until the prior bonds are paid in full or legally considered to be paid in full.
(10)
Unless prior bonds are paid in full simultaneously with the issuance of a refunding assessment bond, the local entity shall:
(a)
irrevocably set aside the proceeds of the refunding assessment bond in an escrow or other separate account; and
(b)
pledge the account described in Subsection (10)(a) as security for the payment of the prior bonds, the refunding assessment bond, or both.
(11)
This part applies to any refunding assessment bond:
(a)
regardless of whether the local entity already issued the bond; and
(b)
regardless of whether the local entity issued the prior bonds that the bond refunded under prior law and regardless of whether that law is currently in effect.
Section 42a-404 ("Reducing assessments after issuance of refunding assessment bonds -- Retroactive effect.") 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 § 42a-404?
A common citation format is "Utah Code § 42a-404" (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 § 42a-404 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.
