{"data":{"id":"us-ut/utah-code-11-42-606","jurisdiction":"us-ut","citation":"Utah Code § 11-42-606","heading":"Assessment bonds are not a local entity's general obligation -- Liability and responsibility of a local entity that issues assessment bonds.","body":"(1) Assessment bonds are not a general obligation of the local entity that issues them.\n(2) A local entity that issues assessment bonds:\n(a) may not be held liable for payment of the bonds except to the extent of:\n(i) funds created and received from assessments against which the bonds are issued;\n(ii) improvement revenues; and\n(iii) the local entity's guaranty fund under Section 11-42-701 or, if applicable, reserve fund under Section 11-42-702; and\n(b) is responsible for:\n(i) the lawful levy of all assessments;\n(ii) the collection and application of improvement revenues, as provided in this chapter;\n(iii) the creation and maintenance of a guaranty fund or, if applicable, a reserve fund; and\n(iv) the faithful accounting, collection, settlement, and payment of:\n(A) assessments and improvement revenues; and\n(B) money in a guaranty fund or, if applicable, a reserve fund.\n(3) If a local entity illegally assesses property that is exempt from assessment, the local entity:\n(a) is liable to the holders of assessment bonds for the payment of the illegal assessment; and\n(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.","path":["Title 11 Cities, Counties, and Local Taxing Units","Chapter 11-42 Assessment Area Act","Part 11-42-6 Interim Warrants, Bond Anticipation Notes, Assessment Bonds, and Refunding Assessment Bonds"],"source_url":"https://le.utah.gov/xcode/Title11/Chapter42/11-42-S606.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"eb1a214d0fd1d9c10c1446f2aa9952f385090512b97d1acf7a6c584b4c96d924","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-11-42-605","next":"us-ut/utah-code-11-42-607"},"notice":"GroundRules: Original legal text. Not legal advice."}