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.

(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.