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(1) A public infrastructure district may issue negotiable bonds for the purposes described in Section 17D-4-203, as provided in, as applicable:
(a)Title 11, Chapter 14, Local Government Bonding Act;
(b)Title 11, Chapter 27, Utah Refunding Bond Act;
(c)Title 11, Chapter 42, Assessment Area Act; and
(d) this section.
(2) A public infrastructure district bond:
(a) shall mature within 40 years of the date of issuance; and
(b) may not be secured by any improvement or facility paid for by the public infrastructure district.
(3)
(a) A public infrastructure district may issue a limited tax bond, in the same manner as a general obligation bond:
(i) with the consent of 100% of surface property owners within the boundaries of the public infrastructure district and 100% of the registered voters, if any, within the boundaries of the proposed public infrastructure district; or
(ii) upon approval of a majority of the registered voters within the boundaries of the public infrastructure district voting in an election held for that purpose under Title 11, Chapter 14, Local Government Bonding Act.
(b) A limited tax bond described in Subsection (3)(a):
(i) is not subject to the limitation on a general obligation bond described in Subsection 17B-1-1102(4)(a)(xii); and
(ii) is subject to a limitation, if any, on the principal amount of indebtedness as described in the governing document.
(c) Unless limited tax bonds are initially purchased exclusively by one or more qualified institutional buyers as defined in Rule 144A, 17 C.F.R. Sec. 230.144A, the public infrastructure district may only issue limited tax bonds in denominations of not less than $500,000, and in integral multiples above $500,000 of not less than $1,000 each.
(d)
(i) Without any further election or consent of property owners or registered voters, a public infrastructure district may convert a limited tax bond described in Subsection (3)(a) to a general obligation bond if the principal amount of the related limited tax bond together with the principal amount of other related outstanding general obligation bonds of the public infrastructure district does not exceed 15% of the fair market value of taxable property in the public infrastructure district securing the general obligation bonds, determined by:
(A) an appraisal from an appraiser who is a member of the Appraisal Institute that is addressed to the public infrastructure district or a financial institution; or
(B) the most recent market value of the property from the assessor of the county in which the property is located.
(ii) The consent to the issuance of a limited tax bond described in Subsection (3)(a) is sufficient to meet any statutory or constitutional election requirement necessary for the issuance of the limited tax bond and any general obligation bond to be issued in place of the limited tax bond upon meeting the requirements of this Subsection (3)(d).
(iii) A general obligation bond resulting from a conversion of a limited tax bond under this Subsection (3)(d) is not subject to the limitation on general obligation bonds described in Subsection 17B-1-1102(4)(a)(xii).
(e) A public infrastructure district that levies a property tax for payment of debt service on a limited tax bond issued under this section is not required to comply with the notice and hearing requirements of Section 59-2-919 unless the rate exceeds the rate established in:
(i) Section 17D-4-303, except as provided in Subsection (8);
(ii) the governing document; or
(iii) the documents relating to the issuance of the limited tax bond.
(4) There is no limitation on the duration of revenues that a public infrastructure district may receive to cover any shortfall in the payment of principal of and interest on a bond that the public infrastructure district issues.
(5) A public infrastructure district is not a municipal corporation for purposes of the debt limitation of Utah Constitution, Article XIV, Section 4.
(6) The board may, by resolution, delegate to one or more officers of the public infrastructure district the authority to:
(a) in accordance and within the parameters set forth in a resolution adopted in accordance with Section 11-14-302, approve the final interest rate, price, principal amount, maturity, redemption features, and other terms of the bond;
(b) approve and execute any document relating to the issuance of a bond; and
(c) approve any contract related to the acquisition and construction of the improvements, facilities, or property to be financed with a bond.
(7)
(a) Any person may contest the legality of the issuance of a public infrastructure district bond or any provisions for the security and payment of the bond for a period of 30 days after:
(i) publication of the resolution authorizing the bond; or
(ii) publication of a notice of bond containing substantially the items required under Subsection 11-14-316(2).
(b) After the 30-day period described in Subsection (7)(a), no person may bring a lawsuit or other proceeding contesting the regularity, formality, or legality of the bond for any reason.
(8)
(a) In the event of any statutory change in the methodology of assessment or collection of property taxes in a manner that reduces the amounts which are devoted or pledged to the repayment of limited tax bonds, a public infrastructure district may charge a rate sufficient to receive the amount of property taxes or assessment the public infrastructure district would have received before the statutory change in order to pay the debt service on outstanding limited tax bonds.
(b) The rate increase described in Subsection (8)(a) may exceed the limit described in Section 17D-4-303.
(c) The public infrastructure district may charge the rate increase described in Subsection (8)(a) until the bonds, including any associated refunding bonds, or other securities, together with applicable interest, are fully met and discharged.