Utility bond is the bond which is issued to perform the public utility service as per the jurisdiction and ordinance of the state and federal government. The bonds are also known by the name as state forest utility bonds. The principal or interest of the bonds will not be a general obligation of the state, but shall be owed from the forest development account only. The department may issue the bonds in exchange for lands that are being selected by it. This bond is framed according to the ordinance of the state proceeds. Moreover, any of the bonds that are issued in exchange and payment for any finicky tract of lands should be created first and prior lien against the particular land for which they are exchanged, and upon failure for paying bonds and interest according to their terms, the lien of the bonds may be foreclosed by suitable court action.
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