Title 17D Chapter 2 Section 405

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Title 17D
Limited Purpose Local Government Entities - Other Entities
Chapter 2
Local Building Authority Act
Section 405
Default under a lease agreement.

            

17D-2-405.   Default under a lease agreement.

            If a local entity fails to pay a lease payment due to a local building authority under a lease agreement:

            (1) the local entity shall immediately quit and vacate the project;

            (2) the local entity's lease payment obligation under the lease agreement terminates; and

            (3) the local building authority may immediately lease the project according to the provisions of:

            (a) the proceeding under which bonds to fund the project were authorized; and

            (b) any mortgage given to secure the bonds.


Enacted by Chapter 360, 2008 General Session

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