(1) Subject to Subsection (2), the governing body of the creating local entity may at any time dissolve a local building authority created by the creating local entity, by following the procedures in Title 16, Chapter 6a, Utah Revised Nonprofit Corporation Act, for the dissolution of a nonprofit corporation.
(2) A creating local entity's governing body may not dissolve a local building authority unless:
(a)
(i) the principal, interest, and any redemption premium on all outstanding bonds of the local building authority are paid in full; and
(ii) all other obligations of the local building authority are paid in full; or
(b) the local building authority has made provision for the payment, when due, of all bond and other obligations described in Subsection (2)(a).