11-42-702. Reserve fund.
(1) In lieu of creating and funding a guaranty fund under Sectionfor an issue of assessment bonds or refunding assessment bonds, a local entity may establish a reserve fund to secure the issue. 11-42-701
(2) If a local entity establishes a reserve fund under this section: the bonds secured by the reserve fund are not secured by a guaranty fund under Section; 11-42-701 the local entity is not required to fund a guaranty fund under Sectionfor those bonds; and 11-42-701 unless otherwise provided in this part or in the proceedings authorizing the issuance of bonds, the provisions of this part regarding a guaranty fund have no application to the bonds that are secured by the reserve fund.
(3) Each local entity that establishes a reserve fund shall: fund and replenish the reserve fund in the amounts and manner provided in the proceedings authorizing the issuance of the bonds that are secured by the reserve fund; and invest the funds on deposit in the reserve fund as provided in. Title 51, Chapter 7, State Money Management Act
(4) Subject to Subsection, a local entity may replenish a reserve fund under this section by any of the methods described in Subsection. (4)(b) 11-42-701(1)(b) The proceedings authorizing the issuance of assessment bonds or refunding assessment bonds shall provide that if a local entity uses any of the methods described in Subsectionto replenish a reserve fund, the local entity shall be reimbursed, with interest at a rate that the local entity determines, with money that the local entity receives from foreclosing on delinquent property. 11-42-701(1)(b)
(5) Upon the retirement of bonds secured by a reserve fund, the local entity shall: terminate the reserve fund; and disburse all remaining money in the fund as provided in the proceedings authorizing the issuance of the bonds.