Public Debt

Section 1. The State may, to meet casual deficits or failures in revenue, or for expenses not provided for, contract debts, but such debts, direct or contingent, in the aggregate, shall not at any time exceed one million dollars ($1,000,000.00) and the moneys arising from the loans creating such debts shall be applied to the purposes for which they were obtained or to repay the debts so contracted and to no other purpose whatever.

Section 2. In addition to the above limited power to contract debts, the State may contract debts to repel invasion, suppress insurrection, or to defend the State in war, but the money arising from the contracting of such debts shall be applied to the purpose for which it was raised, and to no other purpose whatever.

Section 3. Except the debts specified in sections one and two of this article, no debts shall hereafter be contracted by, or on behalf of this State, unless such debt shall be authorized by law for some single work or object to be distinctly specified therein, which law shall provide ways and means, exclusive of loans for the payment of interest on such debt as it falls due, and also pay and discharge the principal of such debt within twenty years from the time of the contracting thereof. No such law shall take effect until it shall, at a general election, have been submitted to the people and have received a majority of all the votes cast for and against it at such election, and all moneys raised by authority of such law shall be applied only to the specific object therein stated, or to the payment of the debt thereby created and such law shall be published in at least one newspaper in each county, if one be published therein, throughout the state, for three months next preceding the election at which it is submitted to the people.

Section 4. No debt in excess of the taxes for the current year shall, in any manner, be created by any county or subdivision thereof or any school district therein, or any city, town or village, or any subdivision thereof in the State of Utah unless the proposition to create such debt shall have been submitted to a vote of such qualified electors thereof as shall have paid a property tax therein in the year next preceding such election and a majority of those voting thereon shall vote in favor of incurring such debt.

Section 5. No county, city town, school district, or other municipal corporation even when authorized to create indebtedness as provided in section four of this article, shall for any purpose become indebted to an amount including existing indebtedness in the aggregate exceeding five (5) per centum of the value of the taxable property therein, to be ascertained by the last assessment for state and county purposes previous to the incurring of such indebtedness; except that in incorporated cities the assessment shall be taken from the last assessment for city purposes; provided that in part of the indebtedness allowed in this section shall be incurred for other than strictly county, city, town or school district purposes; provided further, that any city or town when authorized as provided In section four (4) of this article may be allowed to become indebted to a larger amount, but not exceeding five (5) per centum additional for supplying such city or town with water, artificial light, and sewers, when the works for supplying such water, light, and sewers shall be owned and controlled by the municipality.

Section 6. All moneys borrowed by, or on behalf of the state or any legal sub-division thereof, shall be used only for the purpose specified in the law authorizing the loan.

Section 7. The State shall not assume the debt, or any part thereof, of any county, city, town or school district.

Section 8. Nothing contained in this article shall be so construed as to either impair or add to the obligation of any debt heretofore contracted by any county, city, town or school district, in accordance with the laws of Utah Territory, or prevent the contracting of any debt, or to the issuing of bonds therefore, in accordance with the said laws, upon any proposition for that purpose which may have been, according to said laws, submitted to a vote of the qualified electors of any county, city, town or school district before the day on which this Constitution takes effect.

• Article on Public Debt [Article No. 15] (introduced on 1895-03-30 00:00:00 - CREATE - e697565) [This document] [view current proposal at this moment]
  • None (introduced on 1895-03-30 00:00:00 - REPORT_PROPOSAL - e697568) [view current proposal at this moment]