{"data":{"id":"us-ut/utah-code-17d-2-402","jurisdiction":"us-ut","citation":"Utah Code § 17D-2-402","heading":"Requirements for lease agreements.","body":"(1) Each lease agreement between a local building authority and its creating local entity shall:\n(a) provide for the payment of lease payments sufficient:\n(i) to pay:\n(A) the principal of and interest on local building authority bonds the proceeds of which were used to construct, acquire, improve, or extend the project;\n(B) all fees and expenses of trustees and paying agents for bonds described in Subsection (1)(a)(i)(A); and\n(C) all costs of maintaining and operating the project; and\n(ii) to accumulate any reasonable reserve that the local building authority considers necessary;\n(b) provide that the creating local entity, if not in default under the lease agreement, may:\n(i) subject to Subsection (2), renew the lease for a fixed term beyond the initial term by giving specified notice before the expiration of the initial term; and\n(ii) subject to Subsection (3) and the terms of the lease agreement, purchase the leased property on a date fixed in the agreement;\n(c) provide that a creating local entity under the lease agreement is not under any obligation:\n(i) to purchase the leased property; or\n(ii) to a creditor, shareholder, or security holder of the local building authority; and\n(d) require that:\n(i) title to the project vest in the creating local entity upon payment in full of all outstanding local building authority bonds issued to construct, acquire, improve, or extend a project; and\n(ii) any remaining assets and net earnings of the local building authority be paid to the creating local entity upon dissolution of the local building authority, as provided in Section 17D-2-702.\n(2) The term of a lease agreement under this part, including any renewal of the lease agreement, may not exceed the lesser of:\n(a) the estimated useful life of the project, as certified under Subsection 17D-2-302(1); and\n(b) 40 years.\n(3) The purchase price of leased property under Subsection (1)(b)(ii) may not exceed the project costs that the local building authority actually invested in the project.","path":["Title 17D Limited Purpose Local Government Entities - Other Entities","Chapter 17D-2 Local Building Authority Act","Part 17D-2-4 Local Building Authority Lease Agreements"],"source_url":"https://le.utah.gov/xcode/Title17D/Chapter2/17D-2-S402.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"70c59a1830aa4720657ecae5e410d2d181d692a67c8e4da756bfd16cfd81825c","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-17d-2-401","next":"us-ut/utah-code-17d-2-403"},"notice":"GroundRules: Original legal text. Not legal advice."}