S.B. 149 Enrolled

BONDING LAW AMENDMENTS - STATE
FINANCING CONSOLIDATION ACT
2003 GENERAL SESSION
STATE OF UTAH
Sponsor: Leonard M. Blackham
This act modifies the State Financing Consolidation Act provisions by defining additional
terms, clarifying the scope of the act, modifying certain responsibilities and processes
established by the act, and making technical corrections.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
63-65-2, as last amended by Chapter 270, Laws of Utah 1998
63-65-3, as last amended by Chapter 135, Laws of Utah 1997
63-65-4, as last amended by Chapter 175, Laws of Utah 2001
63-65-5, as repealed and reenacted by Chapter 164, Laws of Utah 1989
63-65-6, as enacted by Chapter 164, Laws of Utah 1989
63-65-7, as enacted by Chapter 164, Laws of Utah 1989
63-65-8, as last amended by Chapter 259, Laws of Utah 1991
63-65-9, as enacted by Chapter 164, Laws of Utah 1989
ENACTS:
63-65-8.1, Utah Code Annotated 1953
63-65-8.2, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 63-65-2 is amended to read:
63-65-2. Definitions.
As used in this chapter:
(1) "Agency bonds" means any bond, note, contract, or other evidence of indebtedness
representing loans or grants made by an authorizing [agencies] agency.
(2) "Authorized official" means the state treasurer or other person authorized by a bond
document to perform the required action.

[(2)] (3) "Authorizing agency" means the board, person, or unit with legal responsibility
for administering and managing revolving loan funds.
(4) "Bond document" means:
(a) a resolution of the commission; or
(b) an indenture or other similar document authorized by the commission that authorizes
and secures outstanding revenue bonds from time to time.
(5) "Commission" means the State Bonding Commission created in Section 63B-1-201 .
[(3)] (6) "Revenue bonds" means any special fund revenue bonds issued [by the state
treasurer on behalf of the state pursuant to Section 63-65-8 ] under this chapter.
[(4)] (7) "Revolving Loan Funds" means:
(a) the Water Resources Conservation and Development Fund, created in Section
73-10-24 ;
(b) the Water Resources Construction Fund, created in Section 73-10-8 ;
(c) the Water Resources Cities Water Loan Fund, created in Section 73-10-22 ;
(d) the Clean Fuel Conversion Funds, created in Title [9] 63, Chapter [1] 34, Part [7] 2,
Clean Fuels Conversion Program Act;
(e) the Water Development Security [Account] Fund and its subaccounts created in
Section 73-10c-5 ;
(f) the Agriculture Resource Development Fund, created in Section 4-18-6 ;
(g) the Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
(h) the Permanent Community Impact Fund, created in Section 9-4-303 ;
(i) the Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ; and
(j) the Transportation Infrastructure Loan Fund, created in Section 72-2-202 .
Section 2. Section 63-65-3 is amended to read:
63-65-3. Investment officer -- Powers and duties.
(1) There is created within the Office of the State Treasurer an investment banking
officer to advise, counsel, and render technical assistance to authorizing agencies in the
management of state loan and grant programs.

- 2 -

(2) This officer shall:
(a) work cooperatively with the staff and boards of authorizing agencies as an advisor on
technical financial aspects concerning loan and grant programs authorized by law;
(b) coordinate procedures for the closing of and assist authorizing agencies in closing all
loans and grants of funds or other subsidy agreements;
(c) analyze, in conjunction with the appropriate authorizing agency, the financial
feasibility and economic and capital efficiency of projects of applicants to authorizing agencies
for loans and grants, review financing options, and make recommendations to each authorizing
agency regarding terms of loans or grants and levels of state subsidy in accordance with the
financial feasibility of the project and the efficiency of available state capital;
(d) coordinate and consolidate, to the extent possible, all financial and legal analysis of
financing plans and closings of loans and grants made by each authorizing agency; and
(e) provide an annual report of his activities to the state treasurer, the governor, the
Division of Finance, and the boards of each authorizing agency.
(3) The analysis under Subsection (2)(c) shall include[, but is not limited to,]
consideration of the following criteria:
(a) a demonstration of need based on the applicant's overall financial profile, including
[but not limited to,] overlapping debt, tax levies, user rates, fees, charges, assessments, and other
revenue and obligations existing within the community as a whole;
(b) the ability of the applicant to obtain financing from other, [(]preferably private[)],
sources on terms and conditions reasonably affordable;
(c) the availability and advisability of financing methods such as loans, grants, interest
buy down arrangements, bond insurance, loan or bond guarantees, or any other appropriate
method;
(d) the economic and efficiency of capital advantages enuring to the authorizing agency
if the financing plan is adopted;
(e) a demonstration of local public support for the financing plan; and
(f) availability of other funds and financing methods under law.

- 3 -

(4) Each authorizing agency shall consult with and cooperate with the officer and shall
consider his recommendations before proceeding to fund a project, but the final decision as to the
appropriate financing plan shall rest with the board of the authorizing agency according to their
legal authority existing at the time.
Section 3. Section 63-65-4 is amended to read:
63-65-4. Custodial officer -- Powers and duties.
(1) There is created within the Division of Finance an officer responsible for the care,
custody, safekeeping, collection, and accounting of all bonds, notes, contracts, trust documents,
and other evidences of indebtedness owned or administered by:
(a) the state or any of its agencies; and
(b) revolving loan funds except the:
(i) Agriculture Resource Development Fund, created in Section 4-18-6 ;
(ii) Utah Rural Rehabilitation Fund, created in Section 4-19-4 ;
(iii) Petroleum Storage Tank Loan Fund, created in Section 19-6-405.3 ; and
(iv) Olene Walker Housing Loan Fund, created in Section 9-4-702 .
(2) (a) Each authorizing agency shall deliver to this officer for his care, custody,
safekeeping, collection, and accounting all bonds, notes, contracts, trust documents, and other
evidences of indebtedness owned or administered by:
(i) the state or any of its agencies; and
(ii) revolving loan funds.
(b) This officer shall:
(i) establish systems, programs, and facilities for the care, custody, safekeeping,
collection, and accounting for the bonds, notes, contracts, trust documents, and other evidences
of indebtedness submitted to him under this Subsection (2); and
(ii) shall make available updated reports to each authorizing agency as to the status of
loans under their authority.
(3) The officer described in Section 63-65-3 shall deliver to this officer for his care,
custody, safekeeping, collection, and accounting all bonds, notes, contracts, trust documents, and

- 4 -

other evidences of indebtedness closed as provided in Subsection 63-65-3 (2)(b).
Section 4. Section 63-65-5 is amended to read:
63-65-5. State treasurer may sell, assign, or liquidate agency bonds -- Marketing
plan required.
(1) [Authorizing] One or more authorizing agencies may from time to time request the
state treasurer to[: (a)] sell, assign, or [pledge] liquidate agency bonds on behalf of the
authorizing agencies as provided in Section 63-65-6 [; or].
[(b) issue revenue bonds on behalf of the state, as provided in Section 63-65-8 , for the
purpose of providing funds to purchase agency bonds from the authorizing agencies under
Section 63-65-7 .]
(2) (a) Agency bonds shall be sold, assigned, transferred, or [pledged by authorizing
agencies to or] liquidated by the state treasurer pursuant to a [plan or plans of] marketing plan
provided by the state treasurer under Section 63-65-6 [or 63-65-7 , as the case may be. The plan
or plans of marketing shall be approved in writing by the governor and the appropriate
authorizing agency or agencies].
(b) The governor or the governor's designee and the appropriate authorizing agency shall
approve the marketing plan, in writing.
Section 5. Section 63-65-6 is amended to read:
63-65-6. Marketing plan and related agreements -- Use of proceeds of liquidation
of agency bonds -- Report to Division of Finance -- Special funds -- Limitation on liability.
(1) (a) [Prior to] Before the liquidation of any agency bonds pursuant to the request of an
authorizing agency as provided in Section 63-65-5 , the state treasurer shall provide a written
[plan of] marketing plan to the governor or the governor's designee and the appropriate
authorizing agency or agencies for written approval.
(b) The marketing plan [of marketing] may provide for:
(i) the terms and conditions under which the agency bonds may be sold, assigned, or
[pledged] liquidated by the state treasurer;
(ii) the particular agency bonds to be sold, assigned, or [pledged] liquidated, or a

- 5 -

maximum par amount of agency bonds to be sold, assigned, or [pledged] liquidated;
(iii) the price or a range of prices of the agency bonds to be sold, assigned, or [pledged]
liquidated, which may be at, above, or below par, as the state treasurer determines in the [plan of]
marketing plan;
(iv) the terms and conditions of agreements entered into by the state treasurer on behalf
of the state with financial and other institutions for financial advisory services, trustee services,
insurance, letters of credit, reimbursement agreements, tender agreements, put agreements,
repurchase agreements, and indexing and tender agent agreements to facilitate the [plan of]
marketing plan or to secure or provide liquidity to support any agreement, obligation, or contract
entered into by the state treasurer on behalf of the state in connection with the sale, assignment,
or [pledge] liquidation of the agency bonds and any repurchase, remarketing, or other [pledge]
liquidation of the agency bonds and any insurance, repurchase, remarketing, tender, put, letter of
credit, or agreement, obligation, or contract entered in connection with them, including payment
of fees, charges, or other amounts coming due under agreements entered into with financial or
other institutions by the state treasurer, from the proceeds of any sale, [pledge,] assignment, or
other [hypothecation] liquidation of agency bonds, and from any investment earnings on such
proceeds, and no other state money may be used for this purpose;
(v) the application of the proceeds received from the sale, assignment, or [pledge]
liquidation of agency bonds, and any investment earnings on them; and
(vi) all other details relating to the sale, assignment, or [pledge] liquidation of agency
bonds and any related, attached, or accompanying insurance, tender, put, repurchase,
remarketing, letter of credit, or other agreement, obligation, or contract deemed necessary or
appropriate by the state treasurer.
[(b)] (c) The state treasurer, on behalf of the state, may enter into the agreements
contemplated in the [plan of] marketing plan.
(2) (a) After the payment of, or provision for payment of, the fees, charges, or other
amounts[,] pursuant to Subsection (1), the state treasurer shall deliver the proceeds of the sale,
[pledge,] assignment, or other [hypothecation] liquidation of agency bonds under this section

- 6 -

[shall be delivered by the state treasurer] to the appropriate authorizing agency [for application as
then authorized under] to be applied as authorized by the law creating or authorizing the loan or
grant program of [each] the authorizing agency.
(b) (i) The marketing plan [of marketing] may provide that if any agreement, obligation,
or contract entered into by the state treasurer on behalf of the state with respect to the sale,
repurchase, [pledge,] remarketing, tender, put, assignment, or other [hypothecation] liquidation
of the agency bonds remains outstanding under the [plan of] marketing plan, the proceeds, and
investment earnings on them, may be pledged, escrowed, held in trust, or otherwise held in
reserve by the state treasurer to secure these agreements, obligations, or contracts of the state
treasurer entered into on behalf of the state.
(ii) Any [such] obligations of the state treasurer entered into on behalf of the state under
Subsection (2)(b)(i) shall be limited solely to [such] those proceeds and the investment earnings
on them.
(c) No holder or beneficiary of any put, tender, repurchase, remarketing, or other similar
rights under such agreements, obligations, or contracts of the state treasurer entered into on
behalf of the state has any rights against the state, the state treasurer or any state agency, or funds
of the state, the state treasurer, or any state agency, other than those expressly set forth in the
agreement or contract embodying [such] those rights, consistent with the marketing plan [of
marketing] and the limitation set forth in this Subsection (2).
(3) (a) (i) The state treasurer may establish more than one [plan of] marketing plan under
this section.
(ii) Agency bonds may be combined in any combination and sold, pledged, assigned, or
otherwise [hypothecated] liquidated in any amounts, at any time, and from time to time as
provided in the applicable marketing plan [of marketing].
(b) The state treasurer may, by order, set forth the sale price, form, manner of execution,
payment, manner of sale, [pledge,] assignment, or other [hypothecation] liquidation, and all
details of agreements or contracts entered into in connection with them, including the application
of any proceeds and the investment earnings on them, consistent with the [plan of] marketing

- 7 -

plan and this section.
(c) The state treasurer shall make a verified return to the Division of Finance
immediately upon completion of each transaction of:
(i) the amount of agency bonds involved;
(ii) the amounts received in each transaction entered into under this section; and
(iii) a brief description of any pledge or other restriction on the proceeds of the
transaction or the investment earnings on the proceeds.
(4) The state treasurer may:
(a) create any funds necessary to carry out the purposes of this section[. The state
treasurer may];
(b) invest all money held in those funds in accordance with Title 51, Chapter 7, State
Money Management Act [of 1974], and in accordance with any agreement of the state, pursuant
to the [plan of] marketing plan, with respect to the investment and application of the money[.
Money]; and
(c) invest money held in the funds [may be invested] in obligations of any state, territory,
or possession of the United States, or of any of the political subdivisions of any state, territory, or
possession of the United States, or of the District of Columbia, described in Section 103, Internal
Revenue Code of 1986.
(5) The limitations contained in this section with respect to the liability of the state or its
agencies may not be construed to limit or alter the obligations of political subdivisions on the
bonds in the hands of the holders of them in any manner.
Section 6. Section 63-65-7 is amended to read:
63-65-7. Pledge of agency bonds to pay revenue bonds -- Contents of financing
agreements -- Use of monies received by authorizing agencies.
[(1) Authorizing agencies may sell, assign, transfer, or pledge to the state treasurer, and
the state treasurer may acquire from authorizing agencies, agency bonds pursuant to the request
of an authorizing agency as provided in Section 63-65-5 .]
[(2) (a) Prior to the acquisition of agency bonds, the state treasurer shall provide a written

- 8 -

plan of marketing to the governor and the appropriate authorizing agency or agencies for written
approval. The plan of marketing shall specify:]
[(i) the agency bonds that may be acquired by the state treasurer;]
[(ii) the purchase price for the agency bonds or the manner in which the purchase price
may subsequently be determined by the state treasurer; and]
[(iii) the source or sources of funds from which the state treasurer shall pay the purchase
price of the agency bonds, including the proceeds of revenue bonds issued by the state treasurer
under Section 63-65-8 .]
[(b) The plan of marketing may include other provisions the state treasurer deems
necessary or appropriate.]
[(c) The state treasurer may prepare more than one plan of marketing. Each plan of
marketing may include agency bonds of more than one authorizing agency.]
[(3) Following the approval of the plan of marketing, the state treasurer may]
(1) With the approval of the relevant authorizing agency, the State Bonding Commission
may pledge, assign, or otherwise transfer any agency bonds, any monies payable on or with
respect to them, any legally available monies or other security administered by an authorizing
agency, or any combination of bonds, monies, or other security to provide for the payment of
revenue bonds issued under Section 63-65-8 and the payment of any amounts due under
agreements and contracts described in Subsection 63-65-8 (9).
(2) (a) Before issuing revenue bonds under Section 63-65-8 , the commission shall enter
into a [purchase] financing agreement with the appropriate authorizing agency or agencies.
(b) This agreement shall specify:
[(a) the] (i) any agency bonds, monies, or other security to be [purchased] pledged by the
[state treasurer] commission to provide for the payment of the revenue bonds;
[(b)] (ii) the [purchase price of] amount to be paid to the order of the authorizing agency
or agencies for the agency bonds[;], monies, or other security; and
[(c) the terms of sale of the agency bonds from the authorizing agency or agencies to the
state treasurer; and]

- 9 -

[(d)] (iii) other [details with respect to the purchase of the agency bonds] matters that the
[state treasurer deems] commission considers necessary or appropriate.
[(4)] (3) The [purchase price for agency bonds paid to] amounts received by each
authorizing agency from the proceeds of the revenue bonds, together with all amounts paid to the
authorizing agencies pursuant to Subsection 63-65-8 (10), shall be applied by the authorizing
agency as [then] authorized [under] by the law creating or authorizing the loan or grant program
of [each] the authorizing agency.
Section 7. Section 63-65-8 is amended to read:
63-65-8. Commission may authorize revenue bonds -- Contents of bond document
-- Special and reserve funds -- Limitation on liability -- Restoration of monies in reserve
funds -- Payment of bonds and other technical requirements -- Refunding -- Report to
Division of Finance.
(1) (a) In order to provide authorizing agencies with an alternative method of liquidating
agency bonds[, thereby] and, by doing so, providing authorizing agencies with additional funds
to further the purposes of authorizing agencies, the [state treasurer] commission may authorize
the issuance of revenue bonds from time to time [issue revenue bonds on behalf of] by the state
[for the purpose of generating funds necessary to purchase the agency bonds identified in the plan
of marketing provided by the state treasurer pursuant to Section 63-65-7 ].
(b) These revenue bonds shall be payable solely from a special fund established by the
state treasurer as provided in Subsection (4).
(c) Revenue bonds may be sold at public or private sale and may be issued in one or
more series.
(2) Revenue bonds may be authorized, issued, and sold by the [state treasurer]
commission on behalf of the state at a time or times and in a manner set forth in a [written order
of the state treasurer with respect to each issue of revenue bonds. A copy of this order shall be
filed in the office of the governor prior to the issuance of the revenue bonds by the state treasurer.
The state treasurer shall determine and set forth in the order with respect to each issue of revenue
bonds] bond document that provides for:

- 10 -

(a) the terms and conditions of sale, including price, whether at, below or above face
value;
(b) interest rates, including a variable rate;
(c) authorized denomination;
(d) maturity dates;
(e) form;
(f) manner of execution;
(g) manner of authentication;
(h) place and medium of payment;
(i) redemption terms;
(j) authorized signatures of public officials; and
(k) other provisions and details considered necessary or appropriate.
[(3) The aggregate face amount of each issue of revenue bonds may not exceed the
outstanding principal balance of the agency bonds purchased with the proceeds of the revenue
bonds plus an amount sufficient to:]
(3) To the extent set forth in the resolution, the proceeds of revenue bonds may be used
for the purposes set forth in Subsection (1) and to:
(a) provide for any necessary or desirable reserve fund as provided for in Subsection (5);
and
(b) pay fees, charges, and other amounts related to the issuance and sale of the revenue
bonds.
(4) (a) As provided in the [order of the state treasurer] bond document, the principal of,
premium, if any, and interest on, any issue of revenue bonds is payable solely from and secured
by [a] one or more special [fund] funds consisting of:
(i) the pledge and assignment [by the state treasurer of all] of any agency bonds,
including all amounts payable on or with respect to them, [purchased by the state treasurer with
the proceeds of sale of that issue of revenue bonds] and other monies and security, as provided
for in an agreement entered into under Subsection 63-65-7 (2);

- 11 -

(ii) amounts on deposit in the reserve fund, if any, established [with respect to each
respective issue of revenue bonds pursuant to] under Subsection (5);
(iii) amounts available pursuant to any security device or credit enhancement device that
the [state treasurer may utilize] commission authorizes for the purpose of improving the
marketability of the revenue bonds; and
(iv) other amounts available [to the state treasurer] and pledged by the [state treasurer]
commission to secure payment of that issue of revenue bonds.
(b) [Purchasers] Owners of revenue bonds do not have recourse against the general funds
or general credit of the state or its political subdivisions or agencies, but this limitation does not
limit or alter the obligations of political subdivisions on agency bonds in any manner.
(c) Revenue bonds do not constitute nor give rise to a general obligation or liability of, or
constitute a charge or lien against, the general credit or taxing power of the state or its political
subdivisions or agencies, including any authorizing agency.
(d) Revenue bonds shall contain on their face a statement that:
(i) [the state treasurer is obligated to pay] the revenue bonds are payable solely from the
sources set forth in this Subsection (4) and specified in the [order of the state treasurer] bond
document with respect to the revenue bonds;
(ii) neither the state nor any political subdivision of the state is obligated to pay the
revenue bonds; and
(iii) neither the faith and credit nor the taxing power of the state or any of its political
subdivisions is pledged to the payment of principal or redemption price of, or premium, if any, or
interest on the revenue bonds.
(e) Revenue bonds do not constitute debt of the state within the meaning of Utah
Constitution Article XIII, Sec. [2 (11)] 5 (3) or Article XIV, Sec. 1[, Utah Constitution].
(5) (a) The [state treasurer] commission may establish a reserve fund with respect to any
issue of revenue bonds.
(b) If a reserve fund is established, the [order of the state treasurer pursuant to which]
bond document relating to that issue of revenue bonds [is issued] shall specify:

- 12 -

(i) the minimum amount that is required to be on deposit in the reserve fund;
(ii) the amount of sale proceeds from the sale of that issue of revenue bonds that shall be
deposited in the reserve fund; and
(iii) the manner in which any deficiency in the reserve fund shall be replenished.
[(b)] (c) (i) On or before the first day of December of each year, the state treasurer shall
certify to the governor and the director of the Division of Finance the amount [or amounts], if
any, that may be required to restore all reserve funds established to the minimum amount
specified by the state treasurer with respect to each reserve fund.
(ii) The governor may request an appropriation from the Legislature [an appropriation of
the amount or amounts so] equal to the certified amount in order to restore each reserve fund to
the specified minimum amount.
(6) (a) (i) The [state treasurer] commission may provide in the [order] bond document
that any signature of a public official authorized to sign revenue bonds may be by the facsimile
signature of [such] that official imprinted, engraved, stamped, or otherwise placed on the revenue
bonds.
(ii) If all signatures of public officials on the revenue bonds are facsimile signatures, the
[order] bond document shall provide for a manual authenticating signature on the revenue bonds
by or on behalf of a designated authenticating agent.
(iii) If an official ceases to hold office before delivery of the revenue bonds signed by
[such] that official, the signature or facsimile signature of the official [shall be] is valid and
sufficient for all purposes.
(b) A facsimile of the seal of the state [treasurer] may be imprinted, engraved, stamped,
or otherwise placed on the revenue bonds.
(7) (a) The [state treasurer] commission may provide in the [order] bond document for
the replacement of lost, destroyed, stolen, or mutilated revenue bonds or for the exchange of
revenue bonds after issuance for revenue bonds of smaller or larger denominations.
(b) Revenue bonds in changed denominations shall:
(i) be exchanged for the original revenue bonds in the aggregate principal amounts and in

- 13 -

a manner that prevents the duplication of interest; and
(ii) bear interest at the same rate, be of the same series, mature on the same date, and be
as nearly as practicable in the same form as the original revenue bonds.
(8) (a) (i) Revenue bonds may be registered as to both principal and interest or may be in
a book entry form under which the right to principal and interest may be transferred only through
a book entry.
(ii) The [state treasurer] commission may provide for the services and payment for [such]
the services of one or more financial institutions, other entities or persons, or nominees, within or
outside the state, for:
[(i)] (A) authentication;
[(ii)] (B) registration;
[(iii)] (C) transfer, including record, bookkeeping, or book entry functions;
[(iv)] (D) exchange; and
[(v)] (E) payment.
(b) The records of ownership, registration, transfer, and exchange of the revenue bonds,
and of persons to whom payment with respect to them is made, are classified as private or
protected as defined in Title 63, Chapter 2, Government Records Access and Management Act.
(c) The revenue bonds and any evidences of participation interests in the revenue bonds
may be issued, executed, authenticated, registered, transferred, exchanged, and otherwise made to
comply with Title 15, Chapter 7, Registered Public Obligations Act, or any other act of the
Legislature relating to the registration of obligations enacted to meet the requirements of Section
149 (a), Internal Revenue Code of 1986, or any comparable predecessor or successor provision,
and applicable regulations.
[(9) The state treasurer may, on behalf of the state, enter into]
(9) (a) The commission may authorize the execution and delivery of whatever
agreements and contracts [as] that the [state treasurer] commission considers necessary and
appropriate in connection with the issuance of revenue bonds.
(b) These agreements and contracts may include agreements and contracts with financial

- 14 -

and other institutions for financial advisory services, trustee services, insurance, letters of credit,
reimbursement agreements, tender agreements, put agreements, repurchase agreements, and
indexing and tender agent agreements to:
[(a)] (i) facilitate the sale of the revenue bonds; or
[(b)] (ii) secure or provide liquidity to support any agreement, obligation, or contract
entered into by [the state treasurer] an authorized officer on behalf of the state in connection
with:
[(i)] (A) the issuance and sale of the revenue bonds;
[(ii)] (B) any repurchase, remarketing, or other pledge of the revenue bonds; and
[(iii)] (C) any insurance, repurchase, remarketing, tender, put, letter of credit, or
agreement, obligation, or contract entered into in connection with them, including payment of
fees, charges, or other amounts coming due under agreements entered into with financial or other
institutions [by the state treasurer] on behalf of the state.
(10) When all revenue bonds of an issue have been paid, or provision for their payment
has been made, there shall be transferred to the appropriate authorizing agency or agencies, in the
amounts and in the manner that the [state treasurer] commission considers fair and equitable, and
to the extent not required to secure payment of the revenue bonds and related fees, charges, and
other amounts:
(a) all amounts remaining on deposit in any reserve fund established with respect to the
issue of revenue bonds; and
(b) all other amounts and all agency bonds held by the [state treasurer] commission and
any trustee and pledged to the payment of the revenue bonds.
(11) (a) The state treasurer or the commission may create any funds and accounts
necessary to carry out the purposes of this section.
(b) (i) The state treasurer shall administer and maintain those funds and accounts.
(ii) The state treasurer may invest all [moneys] monies held in those funds and accounts
in accordance with Title 51, Chapter 7, State Money Management Act [of 1974], and in
accordance with the [resolution] bond document or any other agreement entered into [by the] on

- 15 -

behalf of the state [treasurer] as authorized by the [resolution] bond document.
(iii) The commission may not approve the bond document or other agreement with
respect to the investment and application of these [moneys] monies unless the state treasurer has
affirmatively approved any investment provisions contained in the bond document or other
agreement.
(c) All income from the [moneys] monies invested in a fund or account created under
this Subsection (11) shall accrue to the benefit of the fund or account and shall be used for the
purpose [or purposes] for which the fund or account was established.
(12) (a) The [state treasurer may issue] commission may authorize the issuance of
refunding revenue bonds of the state in accordance with Title 11, Chapter 27, Utah Refunding
Bond Act, for the purpose of refunding any revenue bonds.
(b) The state is considered a "public body" and the [state treasurer] commission its
"governing body" for purposes of that act.
(13) (a) [The state treasurer may not issue any revenue bond] Revenue bonds may not be
issued under this section until [he] an authorized official finds and certifies that all conditions
precedent to the issuance of the revenue bond have been satisfied.
(b) A recital on any revenue bond of a finding and certification conclusively establishes
the completion and satisfaction of all conditions of this section.
(14) Revenue bonds, interest paid on revenue bonds, and any income from revenue
bonds is not taxable within this state for any purpose, except for the corporate franchise tax.
(15) (a) Revenue bonds are legal investments for all state trust funds, insurance
companies, banks, trust companies, and the State School Fund.
(b) Revenue bonds may also be used as collateral to secure legal obligations.
(16) Immediately upon the issuance of each issue of revenue bonds, [the state treasurer]
an authorized official shall make a verified return to the Division of Finance of:
(a) the aggregate principal amount of revenue bonds issued;
(b) the amount of proceeds of sale of revenue bonds received by the state [treasurer];
(c) the [purchase price] amount paid to the authorizing agency or agencies for the agency

- 16 -

bonds;
(d) the total amount of all fees and expenses relating to the issuance of the revenue
bonds;
(e) the amount of sale proceeds of the revenue bonds used to pay fees and expenses; and
(f) the amount of sale proceeds of the revenue bonds deposited in the reserve fund
established with respect to the issue of revenue bonds, if any.
Section 8. Section 63-65-8.1 is enacted to read:
63-65-8.1. Tax status -- Exemption.
The revenue bonds issued under this chapter, any interest paid on the revenue bonds, and
any income from the bonds is not taxable in Utah for any purpose, except for the corporate
franchise tax.
Section 9. Section 63-65-8.2 is enacted to read:
63-65-8.2. Publication of resolution or notice -- Limitation on actions to contest
legality.
(1) The commission may either:
(a) publish once in a newspaper having general circulation in Utah any resolution
adopted by it; or
(b) in lieu of publishing the entire resolution, publish a notice of revenue bonds to be
issued, titled as such, containing:
(i) the purpose of the revenue bond issue;
(ii) the maximum principal amount that may be issued;
(iii) the maximum number of years over which the revenue bonds may mature;
(iv) the maximum interest rate that the revenue bonds may bear, if any;
(v) the maximum discount from par, expressed as a percentage of principal amount, at
which the revenue bonds may be sold; and
(vi) that a copy of the resolution or other bond document may be examined at the office
of the state treasurer during regular business hours for at least 30 days after the publication of the
notice.

- 17 -

(2) For 30 days after the date of publication, any interested person may contest:
(a) the legality of the resolution or other bond document;
(b) any of the revenue bonds authorized under it; or
(c) any of the provisions made for the repayment of the revenue bonds.
(3) After 30 days, a person may not, for any cause, contest:
(a) the legality of the resolution or other bond document;
(b) any of the revenue bonds authorized under the resolution or other bond document; or
(c) any of the provisions made for the security and repayment of the revenue bonds.
Section 10. Section 63-65-9 is amended to read:
63-65-9. Payment of expenses.
(1) All expenses incurred by the state [treasurer] under this chapter may be paid:
(a) in the case of expenses incurred under Section 63-65-6 , from the proceeds of [sale]
the liquidation of agency bonds; and
(b) in the case of expenses incurred under Section [ 63-65-7 ] 63-65-8 , from the proceeds
of sale of revenue bonds [or agency bonds].
(2) [Any] (a) Any expenses incurred by the state [treasurer] under this chapter [and] that
are not paid [out of] from the proceeds of [sale] the liquidation of agency bonds or the issuance
of state revenue bonds shall be [charged to the earnings derived] paid from the revolving funds of
the authorizing agencies [as provided under this chapter and recorded as dedicated credits to the
state treasurer].
(b) These expenses are not a charge to or an appropriation from the General Fund.

- 18 -