11-42-503 - Local entity payments to avoid a default in local entity obligations -- Reimbursement of payments when property sold at tax or foreclosure sale.
11-42-503. Local entity payments to avoid a default in local entity obligations --Reimbursement of payments when property sold at tax or foreclosure sale.
(1) To avoid a default in the payment of outstanding local entity obligations, a localentity may pay:
(a) the delinquent amount due, plus interest, penalties, and costs;
(b) the amounts described in Subsection (1)(a) and the full balance of an assessment, ifaccelerated; or
(c) any part of an assessment or an installment of an assessment that becomes due duringthe redemption period.
(2) A local entity may:
(a) pay the amounts under Subsection (1) from a guaranty fund or a reserve fund, or fromany money legally available to the local entity; and
(b) charge the amounts paid against the delinquent property.
(3) (a) Upon the tax sale or foreclosure of the property charged as provided in Subsection(2):
(i) all amounts that the local entity paid shall be included in the sale price of the propertyrecovered in the sale; and
(ii) the local entity's guaranty fund, reserve fund, or other source of money paid underSubsection (2)(a), as the case may be, shall be reimbursed for those amounts.
(b) If the property charged as provided in Subsection (2) is sold to the local entity at thetax sale or foreclosure and additional assessment installments become due, the local entity:
(i) may pay the additional installments from the guaranty fund or reserve fund, as thecase may be, or from any legally available money;
(ii) shall recover, in a sale of the property, the amount of the installments paid; and
(iii) shall reimburse the guaranty fund or reserve fund when the property is sold.
Enacted by Chapter 329, 2007 General Session