(1) Unless a local entity has assigned an energy assessment lien to a third-party lender under Section 11-42a-302, the governing body of each local entity that levies an assessment under this part on benefitted property within an energy assessment area, or the local entity's designee, may establish an assessment fund.

(2) The governing body or the local entity's designee, as applicable, shall deposit into the assessment fund all money paid to or for the benefit of the local entity from an assessment and interest on the assessment.

(3) The local entity may only expend money in an assessment fund for paying: (a) local entity obligations; and (b) costs that the local entity or the local entity's designee incurs with respect to the administration of the energy assessment area.

(a) local entity obligations; and

(b) costs that the local entity or the local entity's designee incurs with respect to the administration of the energy assessment area.

(4) (a) The treasurer of the local entity or the local entity's designee, as applicable, is the custodian of the assessment fund, subject to Subsection (4)(c)(i). (b) The treasurer of the local entity or the local entity's designee, as applicable, shall: (i) keep the assessment fund intact and separate from all other local entity funds and money; (ii) invest money in the assessment fund in accordance with Title 51, Chapter 7, State Money Management Act; and (iii) keep on deposit in the assessment fund any interest the local entity receives from the investment of money in the assessment fund and use the interest exclusively for the purposes for which the governing body or the local entity's designee established the assessment fund. (c) The treasurer of the local entity or the local entity's designee, as applicable, may: (i) arrange for a trustee bank to hold the assessment fund on behalf of the local entity; and (ii) pay money out of the assessment fund subject to Subsection (3).

(a) The treasurer of the local entity or the local entity's designee, as applicable, is the custodian of the assessment fund, subject to Subsection (4)(c)(i).

(b) The treasurer of the local entity or the local entity's designee, as applicable, shall: (i) keep the assessment fund intact and separate from all other local entity funds and money; (ii) invest money in the assessment fund in accordance with Title 51, Chapter 7, State Money Management Act; and (iii) keep on deposit in the assessment fund any interest the local entity receives from the investment of money in the assessment fund and use the interest exclusively for the purposes for which the governing body or the local entity's designee established the assessment fund.

(i) keep the assessment fund intact and separate from all other local entity funds and money;

(ii) invest money in the assessment fund in accordance with Title 51, Chapter 7, State Money Management Act; and

(iii) keep on deposit in the assessment fund any interest the local entity receives from the investment of money in the assessment fund and use the interest exclusively for the purposes for which the governing body or the local entity's designee established the assessment fund.

(c) The treasurer of the local entity or the local entity's designee, as applicable, may: (i) arrange for a trustee bank to hold the assessment fund on behalf of the local entity; and (ii) pay money out of the assessment fund subject to Subsection (3).

(i) arrange for a trustee bank to hold the assessment fund on behalf of the local entity; and

(ii) pay money out of the assessment fund subject to Subsection (3).