Section 11-42-606 - Assessment bonds are not a local entity's general obligation - Liability and responsibility of a local entity that issues assessment bonds(1) Assessment bonds are not a general obligation of the local entity that issues them.(2) A local entity that issues assessment bonds: (a) may not be held liable for payment of the bonds except to the extent of: (i) funds created and received from assessments against which the bonds are issued;(ii) improvement revenues; and(iii) the local entity's guaranty fund under Section 11-42-701 or, if applicable, reserve fund under Section 11-42-702; and(b) is responsible for: (i) the lawful levy of all assessments;(ii) the collection and application of improvement revenues, as provided in this chapter;(iii) the creation and maintenance of a guaranty fund or, if applicable, a reserve fund; and(iv) the faithful accounting, collection, settlement, and payment of: (A) assessments and improvement revenues; and(B) money in a guaranty fund or, if applicable, a reserve fund.(3) If a local entity illegally assesses property that is exempt from assessment, the local entity: (a) is liable to the holders of assessment bonds for the payment of the illegal assessment; and(b) shall pay the amount for which it is liable under Subsection (3)(a) from the local entity's general fund or other legally available money.Enacted by Chapter 329, 2007 General Session.