{"data":{"id":"us-ut/utah-code-11-42-702","jurisdiction":"us-ut","citation":"Utah Code § 11-42-702","heading":"Reserve fund.","body":"(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.\n(2) If a local entity establishes a reserve fund under this section:\n(a) the bonds secured by the reserve fund are not secured by a guaranty fund under Section 11-42-701;\n(b) the local entity is not required to fund a guaranty fund under Section 11-42-701 for those bonds; and\n(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.\n(3) Each local entity that establishes a reserve fund shall:\n(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\n(b) invest the funds on deposit in the reserve fund as provided in Title 51, Chapter 7, State Money Management Act.\n(4)\n(a) 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).\n(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.\n(5) Upon the retirement of bonds secured by a reserve fund, the local entity shall:\n(a) terminate the reserve fund; and\n(b) disburse all remaining money in the fund as provided in the proceedings authorizing the issuance of the bonds.","path":["Title 11 Cities, Counties, and Local Taxing Units","Chapter 11-42 Assessment Area Act","Part 11-42-7 Guaranty and Reserve Funds"],"source_url":"https://le.utah.gov/xcode/Title11/Chapter42/11-42-S702.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"47c67af7810ba47df1553746a4199b9e622370870d836bf41440f8db5a38dde9","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-11-42-701","next":"us-ut/utah-code-11-42-703"},"notice":"GroundRules: Original legal text. Not legal advice."}