Limited Purpose Local Government Entities - Other Entities
Local Building Authority Act
Section 506
Other entities not responsible for local building authority bonds or breach of mortgage and other obligations.
     17D-2-506.   Other entities not responsible for local building authority bonds or breach of mortgage and other obligations.
     (1) Nothing in this part may be construed to require:
     (a) the state or any political subdivision of the state to pay a bond issued under this part;
     (b) the state or, except the creating local entity, any political subdivision of the state to pay any rent or lease payment due to a local building authority under the terms of a lease agreement; or
     (c) the creating local entity to appropriate money to pay:
     (i) principal of or interest on bonds issued by a local building authority; or
     (ii) the lease payments under a lease agreement with the local building authority.
     (2) A breach of a mortgage or a covenant or agreement in a mortgage may not impose a general obligation or liability upon or a charge against:
     (a) the creating local entity; or
     (b) the general credit or taxing power of the state or any political subdivision of the state.

Amended by Chapter 356, 2009 General Session
Download Code Section Zipped WordPerfect 17D02_050600.ZIP 1,972 Bytes