{"data":{"id":"us-ut/utah-code-17d-2-505","jurisdiction":"us-ut","citation":"Utah Code § 17D-2-505","heading":"Security for local building authority bonds.","body":"(1) The principal of and interest on bonds that a local building authority issues under this part:\n(a) shall be secured by a pledge and assignment of the revenue that the local building authority receives under its lease agreement with respect to the project that was financed with the bond proceeds;\n(b) may be secured by:\n(i) a mortgage covering some or all of the project;\n(ii) a pledge and assignment of the lease agreement for that project;\n(iii) money held in a reserve fund; and\n(iv) any other security device with respect to the project that the local building authority considers most advantageous.\n(2) A proceeding under which a mortgage is given to secure the bonds of a local building authority may contain any agreement or provision listed in Section 17D-2-503 that could be contained in a proceeding under which a local building authority is authorized to issue bonds under this part.\n(3) A mortgage to secure bonds issued by a local building authority under this part may provide that:\n(a) upon default in its payment or the violation of any covenant or agreement contained in the mortgage, the mortgage may be foreclosed in the manner permitted by law; and\n(b) the trustee or holder of any bond secured by the mortgage may become the purchaser at a foreclosure sale, if the trustee or holder is the highest bidder.","path":["Title 17D Limited Purpose Local Government Entities - Other Entities","Chapter 17D-2 Local Building Authority Act","Part 17D-2-5 Local Building Authority Bonds"],"source_url":"https://le.utah.gov/xcode/Title17D/Chapter2/17D-2-S505.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-09-03T11:34:33Z","sha256":"3d6eff27b13adfd37c0562e857f66ac22c98513e4e716722b809efd413060d73","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-17d-2-504","next":"us-ut/utah-code-17d-2-506"},"notice":"GroundRules: Original legal text. Not legal advice."}