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Cities, Counties, and Local Taxing Units | |
Assessment Area Act | |
Section 411 | Installment payment of assessments. |
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11-42-411. Installment payment of assessments. (1) (a) In an assessment resolution or ordinance, the governing body may, subject to Subsection (1)(b), provide that some or all of the assessment be paid in installments over a period not to exceed 20 years from the effective date of the resolution or ordinance. (b) If an assessment resolution or ordinance provides that some or all of the assessment be paid in installments for a period exceeding 10 years from the effective date of the resolution or ordinance, the governing body: (i) shall make a determination that: (A) the improvement for which the assessment is made has a reasonable useful life for the full period during which installments are to be paid; or (B) it would be in the best interests of the local entity and the property owners for installments to be paid for more than 10 years; and (ii) may provide in the resolution or ordinance that no assessment is payable during some or all of the period ending three years after the effective date of the resolution or ordinance. (2) An assessment resolution or ordinance that provides for the assessment to be paid in installments may provide that the unpaid balance be paid over the period of time that installments are payable: (a) in substantially equal installments of principal; or (b) in substantially equal installments of principal and interest. (3) (a) Each assessment resolution or ordinance that provides for the assessment to be paid in installments shall, subject to Subsections (3)(b) and (c), provide that the unpaid balance of the assessment bear interest at a fixed rate, variable rate, or a combination of fixed and variable rates, as determined by the governing body, from the effective date of the resolution or ordinance or another date specified in the resolution or ordinance. (b) If the assessment is for operation and maintenance costs or for the costs of economic promotion activities: (i) a local entity may charge interest only from the date each installment is due; and (ii) the first installment of an assessment shall be due 15 days after the effective date of the assessment resolution or ordinance. (c) If an assessment resolution or ordinance provides for the unpaid balance of the assessment to bear interest at a variable rate, the assessment resolution or ordinance shall specify: (i) the basis upon which the rate is to be determined from time to time; (ii) the manner in which and schedule upon which the rate is to be adjusted; and (iii) a maximum rate that the assessment may bear. (4) Interest payable on assessments may include: (a) interest on assessment bonds; (b) ongoing local entity costs incurred for administration of the assessment area; and (c) any costs incurred with respect to: (i) securing a letter of credit or other instrument to secure payment or repurchase of bonds; or (ii) retaining a marketing agent or an indexing agent. (5) Interest imposed in an assessment resolution or ordinance shall be paid in addition to the amount of each installment annually or at more frequent intervals as provided in the assessment resolution or ordinance. (6) (a) Except for an assessment for operation and maintenance costs or for the costs of
economic promotion activities, a property owner may pay some or all of the entire assessment
without interest if paid within 25 days after the assessment resolution or ordinance takes effect.
Amended by Chapter 250, 2008 General Session |
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