(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.