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[Utah Code Table of Contents]
[TITLE 11. Table of Contents]
11-30-1 Short title.
This chapter is known as the "Utah Bond Validation Act."
1987
11-30-2 Definitions.
As used in this chapter:
(1) "Attorney general" means the attorney general of the state or one of his assistants.
(2) "Bonds" means any evidence or contract of indebtedness that is issued or authorized by a public body, including, without limitation, bonds, refunding bonds, advance refunding bonds, bond anticipation notes, tax anticipation notes, notes, certificates of indebtedness, warrants, commercial paper, contracts, and leases, whether they are general obligations of the issuing public body or are payable solely from a specified source, including, but not limited to, annual appropriations by the public body.
(3) "County attorney" means the county attorney of a county or one of his assistants.
(4) "Lease" means any lease agreement, lease purchase agreement, and installment purchase agreement, and any certificate of interest or participation in any of the foregoing. Reference in this chapter to issuance of bonds includes execution and delivery of leases.
(5) "Person" means any person, association, corporation, or other entity.
(6) "Public body" means the state or any agency, authority, instrumentality, or institution of the state, or any county, municipality, quasi-municipal corporation, school district, special district, political subdivision, or other governmental entity existing under the laws of the state, whether or not possessed of any taxing power. With respect to leases, public body, as used in this chapter, refers to the public body which is the lessee, or is otherwise the obligor with respect to payment under any such leases.
(7) "Refunding bonds" means any bonds that are issued to refund outstanding bonds, including both refunding bonds and advance refunding bonds.
(8) "State" means the state of Utah.
(9) "Validity" means any matter relating to the legality
and validity of the bonds and the security therefor, including,
without limitation, the legality and validity of: (a) a public
body's authority to issue and deliver the bonds; (b) any
ordinance, resolution, or statute granting the public body
authority to issue and deliver the bonds; (c) all proceedings,
elections, if any, and any other actions taken or to be taken
in connection with the issuance, sale, or delivery of the
bonds; (d) the purpose, location, or manner of the expenditure
of funds; (e) the organization or boundaries of the public
body; (f) any assessments, taxes, rates, rentals, fees, charges,
or tolls levied or that may be levied in connection with
the bonds; (g) any lien, proceeding, or other remedy for
the collection of those assessments, taxes, rates, rentals,
fees, charges, or tolls; (h) any contract or lease executed
or to be executed in connection with the bonds; (i) the pledge
of any taxes, revenues, receipts, rentals, or property, or
encumbrance thereon or security interest therein to secure
the bonds; and (j) any covenants or provisions contained
in or to be contained in the bonds. If any deed, will, statute,
resolution, ordinance, lease, indenture, contract, franchise,
or other instrument may have an effect on any of the aforementioned,
validity also means a declaration of the validity and legality
thereof and of rights, status, or other legal relations arising
therefrom.
1987
11-30-3 Petition to establish validity of bonds - Contents - Court action.
(1) A public body may, at any time after it has authorized the issuance of bonds for other than a project financing involving more than one series of bonds to finance such project or at any time after it has authorized the issuance of the first series of bonds to finance a project in more than one series, but before the issuance and delivery of any such bonds or such first series of bonds, as the case may be, file a petition to establish the validity of such bonds.
(2) The petition shall be filed in the district court of the county in which the public body maintains its principal office, and shall name as defendants all taxpayers, property owners, citizens of the public body, including nonresidents owning property or subject to taxation therein, all other persons having or claiming any right, title, or interest in any property or funds affected by or to be affected by the bonds, all parties to any contract or instrument which is part of the validation proceedings, and, pursuant to Section 11-30-6 , either the attorney general or the county attorney of the county in which the largest expenditure of proceeds of the bonds is expected to be made.
(3) The petition shall set forth and affirm, by proper allegation of law and fact:
(a) the statutory authority by which the petition is filed;
(b) the statutory authority by which the public body authorized the issuance of the bonds;
(c) the ordinance, resolution, or other proceedings by which the public body authorized the issuance and delivery of the bonds;
(d) the holding of an election and the results of that election, if an election was required;
(e) the purpose of the bonds; and
(f) the source of funds from which the bonds are to be paid.
(4) The petitioner may set forth any additional information with respect to such bonds and any questions of law or fact concerning the validity of the bonds that the petitioner desires the court to adjudicate separately in rendering its judgment, as well as those allegations of law or fact necessary to its consideration.
(5) The petitioner shall then petition the court to render judgment affirming the validity of the bonds and to pass upon any questions for separate adjudication set forth in the petition. Any petitioner may amend or supplement the petition at any time on or before the hearing, but not thereafter without permission of the court.
(6) No amendment or supplement may require republication
of the order unless there has been a change in the issuer
or there has been a substantial change in the use of the
proceeds or the manner of repayment of the bonds.
1987
11-30-4 Hearing on petition.
Upon the filing of the petition, the court shall issue
an order in the form of a notice against all defendants requiring
them to appear at a time and place to be designated in the
order, and to show cause why the prayers of the petition
should not be granted. The time of the hearing shall be not
less than 20 nor more than 30 days from the date of the issuing
of the order. The place of the hearing shall be within the
county in which the petition is filed. The order shall set
forth a general description of the petition but need not
set forth the entire petition or any attached exhibits.
1987
11-30-5 Publication of order for hearing.
(1) Prior to the date set for hearing, the clerk of the court shall cause the order to be published once each week for three consecutive weeks in a newspaper published or of general circulation within the boundaries of the public body or, if the public body has no defined boundaries or there is no newspaper published or of general circulation within the defined boundaries, a newspaper reasonably calculated to notify all parties, which has been approved by the court.
(2) If a refunding bond is being validated, all holders of the bonds to be refunded may be made defendants to the action, in which case notice may be made, and if so made shall be considered sufficient, by mailing a copy of the order to each holder's last-known address.
(3) By publication of the order, all defendants shall
have been duly served and shall be parties to the proceedings.
1997
11-30-6 Contest of petition by attorney general or county attorney - Attorney general and county attorney as parties.
(1) A copy of the petition and order shall be served on the attorney general at least 20 days before the hearing. Upon receipt of the petition, the attorney general shall carefully examine the petition and, if the petition is believed to be defective, insufficient, or untrue, or if, in the attorney general's opinion, a reasonable question exists as to the validity of the bonds, the attorney general shall contest the petition. If neither of those conditions exists or if one or more other parties to the action will, in the attorney general's opinion, competently contest the petition, the attorney general may, upon approval of the court, be dismissed as a defendant.
(2) If the petition is filed by the state or any agency, authority, instrumentality, or institution of the state, the attorney general may not be made a party to the proceeding and notice shall be served on the county attorney in the county in which the largest expenditure of the proceeds of the bonds is expected to be made. That county attorney shall then in all respects perform the role of the attorney general as set forth in this section.
(3) The attorney general or county attorney, as the case may be, may waive his right of appeal and that waiver shall be binding on all successors and assigns.
(4) All costs of the attorney general or county attorney
incurred in performing duties imposed by this section shall
be reimbursed from the proceeds of the bonds if the bonds
are issued.
1987
11-30-7 Pleadings - Questions of law and fact - Judgment.
Any defendant may file, amend, or supplement any pleading
to the proceeding at any time on or before the hearing, but
not thereafter without permission of the court. At the time
and place designated in the order, the court shall proceed
to hear and determine all questions of law and fact, and
shall make those orders which will best enable the court
properly to try and determine all questions of law and fact
and to enter a judgment with the least possible delay. The
judgment shall be based upon a written opinion of the court
which shall make findings of fact and shall state separately
the court's conclusions of law. To the extent possible and
practicable under the circumstances, judgment shall be rendered
within ten days after the hearing is concluded.
1987
11-30-8 Injunction - Other orders.
Upon motion of the public body, whether before or after
the date set for hearing, the court may enjoin the commencement,
prosecution, or maintenance of any other action involving
the validity of the bonds, and may order all other actions
or proceedings consolidated with the validation proceeding
pending before it, and may make orders which are necessary
or proper to effect consolidation or to avoid unnecessary
costs or delays. Those orders are not appealable.
1987
11-30-9 Failure of validity based on substantial defects or material errors and omissions.
No court may fail to declare bonds valid under this chapter
unless the court finds substantial defects or material errors
and omissions in the issuance of the bonds. Matters of form
shall be disregarded.
1987
11-30-10 Appeals to Supreme Court.
An appeal may be taken only to the Supreme Court and may
be taken only by a party appearing at the hearing. No appeal
is allowed unless the notice of appeal is filed within ten
days after the date of entry of the judgment. The Supreme
Court shall expedite and give priority to the hearing and
decision on appeal.
1987
11-30-11 Final judgment - Permanent injunction.
(1) If the judgment upholds the validity of the bonds, and no appeal is taken, or if an appeal is taken from any judgment and at any time thereafter a judgment is rendered holding the bonds to be valid, the judgment shall, notwithstanding any other provision of law, including, without limitation, Rules 55(c) and 60(b) of the Utah Rules of Civil Procedure, be binding and conclusive as to the validity of the bonds against the public body issuing the bonds and all other parties to the petition, and shall constitute a permanent injunction against the institution by any person of any action or proceeding contesting the validity of the bonds or any other matter adjudicated or that might have been adjudicated in the proceedings.
(2) After a final judgment has been entered holding the
bonds to be valid, as to any action or proceeding contesting
the validity of the bonds or any other matter adjudicated
or that might have been adjudicated in the proceedings: (a)
no court has jurisdiction to adjudicate such matters; and
(b) all rights of taxpayers, citizens, and others to litigate
such matters shall lapse.
1987
11-30-12 No challenge based on procedural error.
No bond validated under this chapter may be challenged
because the validation proceeding was not in compliance with
this chapter unless the deficiency renders the proceeding
in any way unconstitutional.
1987
11-30-13 Chapter controlling in conflict of laws.
To the extent that provisions of this chapter are in conflict
with any other law, the provisions of this chapter are controlling.
1987
