Refunding assessment bonds

(1) A local entity may, by a resolution adopted by the governing body, authorize the issuance of a refunding assessment bond as provided in this section, to repay prior bonds in whole or in part, whether at or before the maturity of the prior bonds, at stated maturity, upon redemption, or upon declaration of maturity. (2) (a) Subject to Subsection (2)(b), the issuance of a refunding assessment bond is governed by Title 11, Chapter 27, Utah Refunding Bond Act. (b) If there is a conflict between a provision of Title 11, Chapter 27, Utah Refunding Bond Act, and a provision of this part, the provision of this part governs. (3) In issuing a refunding assessment bond, the local entity shall require the refunding assessment bond and interest on the bond to be payable from and secured, to the extent the prior bonds were payable from and secured, by: (a) the same assessments; or (b) the reduced assessments adopted by the governing body under Section 11-42a-404. (4) A refunding assessment bond: (a) is payable solely from the sources described in Subsection (3); (b) matures no later than one year after the date of final maturity of the prior bonds; (c) does not mature at a time or bear interest at a rate that will cause the local entity to be unable to pay the bond when due from the sources listed in Subsection (3); (d) bears interest as the governing body determines and subject to the provisions relating to interest in Section 11-42a-401; and (e) pays one or more issues of the issuing local entity's prior bonds. (5) If the bond refunds two or more issues of a local entity's prior bonds, the local entity may issue the bond in one or more series.