Title 24, Municipal and County Government

§ 4654. Marketability; certification All municipal bonds, revenue bonds, or other investments of monies of the Bank provided for under this chapter must at all times be purchased in negotiable form, subject to provision for any registration in the name of the Bank or for issuance…

§ 4655. Presumption of validity After issuance, all bonds or notes of the Bank shall be conclusively presumed to be fully authorized and issued by all the laws of this State, and any person or governmental unit shall be stopped from questioning their authorization, sale, issuance…

§ 4671. Reserve fund (a) The Bank shall establish and maintain a special fund called the “Vermont Municipal Bond Bank Reserve Fund” in which there shall be deposited: (1) All monies appropriated by the State for the purpose of the Fund; (2) All proceeds of bonds required to be de…

§ 4672. Withdrawal or transfer Monies in the Reserve Fund or the Revenue Bond Reserve Fund at any time in excess of such fund’s required debt service reserve, whether by reason of investment or otherwise, may, subject to the terms of any contract between the Bank and its bondhold…

§ 4673. Investment (a) Monies at any time in the Reserve Fund may be invested in the same manner as permitted for investment of funds belonging to the State or held in the Treasury. (b) For purposes of valuation, investments in the Reserve Fund shall be valued at par if purchased…

§ 4674. Relation to bond sales Notwithstanding any other provision of this chapter, bonds shall not be issued by the Bank unless there is in the Reserve Fund or Revenue Bond Reserve Fund, as applicable to such bonds, the required debt service reserve for all bonds then issued and…

§ 4675. Annual appropriation In order to assure the maintenance of the required debt service reserve in each reserve fund established pursuant to this chapter, there shall be appropriated annually and paid to the Bank for deposit in each reserve fund, such sum as shall be certifi…

§ 4676. General Fund (a) The Bank shall establish and maintain a fund called the “General Fund” in which there shall be deposited: (1) fees received or charges made by the Bank for use of its services or facilities; (2) any monies which the Bank shall transfer thereto from the re…

§ 4677. Operating expenses No amount may be paid out of the General Fund or from any account therein, which account the Bank may establish therein for the purpose of payment of its operating expenses, for operating expenses of the Bank in any year in excess of the amount provided…

§ 4678. Special accounts The Bank may establish in the General Fund accounts, subaccounts or special accounts that in its opinion are necessary, desirable, or convenient for its purposes. (Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)

§ 4679. Additional accounts The Bank may establish additional reserves or other funds or accounts as may be, in its discretion, necessary, desirable, or convenient to further the accomplishment of its purposes or to comply with the provisions of any of its agreements or resolutio…

§ 4680. Application of funds; excess Money or investments in any fund or account of the Bank established or held for any bonds, notes, indebtedness, or liability to be paid, funded, or refunded by issuance of bonds or notes shall, unless the resolution authorizing the bonds or no…

§ 4681. Revenue Bond Reserve Fund (a) The Bank shall establish and maintain a special fund called the “Vermont Municipal Bond Bank Revenue Bond Reserve Fund” in which there shall be deposited: (1) all monies appropriated by the State for the purpose of such Fund; (2) all proceeds…

§ 4682. Investment of Revenue Bond Reserve Fund (a) Monies at any time in the Revenue Bond Reserve Fund may be invested in the same manner as permitted for investment of funds belonging to the State or held in the Treasury. (b) For purposes of valuation, investments in the Revenu…

§ 4683. Revenue Fund (a) The Bank shall establish and maintain a fund called the “Revenue Fund” in which there shall be deposited: (1) fees received or charges made by the Bank for use of its services or facilities; (2) any monies that the Bank shall transfer thereto pursuant to …

§ 4684. Revenue Fund operating expenses No amount may be paid out of the Revenue Fund or from any account therein, which account the Bank may establish therein for the purpose of payment of its operating expenses, for operating expenses of the Bank in any year in excess of the am…

§ 4685. Special accounts in Revenue Fund The Bank may establish in the Revenue Fund accounts, subaccounts, or special accounts which in its opinion are necessary, desirable, or convenient for its purposes. (Added 1987, No. 55, § 29, eff. May 15, 1987.)

§ 4686. Vermont Infrastructure Sustainability Fund (a) Creation. There is created the Vermont Infrastructure Sustainability Fund within the Vermont Bond Bank. (b) Purpose. The purpose of the Fund is to provide capital to extend and increase capacity of water and sewer service and…

§ 4701. Rights of holders paramount In order to carry out its purpose under this chapter of making loans to governmental units, by purchase of the municipal bonds or revenue bonds of those governmental units, and by receipt of its income from service charges and from payments of …

§ 4702. Default in payment If the Bank defaults in the payment of principal or interest on any issue of notes or bonds after they become due, whether at maturity or upon call for redemption, and the default continues for thirty days, or if the Bank fails or refuses to comply with…

§ 4703. Powers of trustee on default A trustee appointed under section 4702 of this title may, and shall in the trustee’s name, upon written request of the holders of 25 per centum in principal amount of the outstanding notes or bonds: (1) by suit, action, or proceeding, enforce …

§ 4704. Superior Court jurisdiction The Superior Courts have jurisdiction of any suit, action, or proceeding by a trustee on behalf of noteholders or bondholders. The venue of any suit, action, or proceeding shall be laid in the County of Washington. (Added 1969, No. 216 (Adj. Se…

§ 4705. Notice on default Before declaring the principal of notes or bonds due and payable, the trustee must first give 30 days’ notice in writing to the Governor, the Bank, the State Treasurer, and the Attorney General of the State. (Added 1969, No. 216 (Adj. Sess.), § 3, eff. M…

§ 4706. Personal liability Neither the members of the Bank nor any person executing bonds or notes issued under this chapter are liable personally on the bonds or notes. (Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.)

§ 4707. Exemption from execution and sale All property of the Bank is exempt from levy and sale by virtue of an execution and no execution or other judicial process may issue against it nor may any judgment against the Bank be a charge or lien upon its property, but nothing herei…

§ 4708. Pledge of revenues; lien thereof Any pledge of revenues or other monies made by the Bank is binding from the time when the pledge is made. Revenues or other monies so pledged and thereafter received by the Bank shall immediately be subject to the lien of the pledge withou…

§ 4709. Federal insurance or guaranty The Bank may obtain from any department or agency of the United States of America any available insurance or guaranty for the payment or repayment of interest or principal, or both, or any part thereof, on any bonds or notes issued by the Ban…

§ 4710. Surety for deposits by Bank All banks, trust companies, savings banks, investment companies, and other persons carrying on a banking business are hereby authorized to give to the Bank a good and sufficient undertaking with such sureties as shall be approved by the Bank to…

§ 4751. Declaration of policy It is hereby declared to be in the public interest to foster and promote timely expenditures by municipalities for water systems, clean water projects, and solid waste management, each of which is declared to be an essential governmental function whe…

§ 4752. Definitions As used in this chapter: (1) “Agency” means the Agency of Natural Resources. (2) “Bond Bank” means the Vermont Municipal Bond Bank established by section 4571 of this title. (3) “Municipality” means any city, town, village, town school district, incorporated s…

§ 4753. Revolving loan funds; authority to spend; report (a) There is hereby established a series of special funds to be known as: (1) The Vermont Environmental Protection Agency (EPA) Pollution Control Revolving Fund, which shall be used, consistent with federal law, to provide …

§ 4753a. Awards from revolving loan funds (a) Pollution control. The General Assembly shall approve all categories of awards made from the special funds established by section 4753 of this title for water pollution abatement and facility construction, in order to assure that such…

§ 4753b. Acceptance of funds (a) The Commissioner of Environmental Conservation, with the approval of the Secretary of Natural Resources, may accept federal grants made available through the federal Clean Water Act and the federal Drinking Water Act in accordance with this chapte…

§ 4754. Loan application A municipality may apply for a loan, the proceeds of which shall be used to acquire, design, plan, construct, enlarge, repair, or improve a clean water project, public water supply systems as defined in subdivision 4752(9) of this title, or a solid waste …

§ 4755. Loan; loan agreements; general provisions (a) Except as provided by subsection (c) of this section, the Bond Bank may make loans to a municipality on behalf of the State for one or more of the purposes set forth in section 4754 of this chapter. Each of the loans shall be …

§ 4756. Eligibility certification (a) No construction loan or loan for the purchase of land or conservation easements to a municipality shall be made under this chapter, nor shall any part of any revolving fund that is designated for project construction be expended under section…

§ 4757. Revolving loan funds; additional uses In addition to providing a source of funds from which loans may be made to municipalities under this chapter, each fund created under section 4753 of this chapter may be used for one or more of the following purposes: (1) To make loan…

§ 4758. Loan priorities (a) Periodically, and at least annually, the Secretary shall prepare and certify to the Bond Bank a project priority list of those municipalities whose publicly or privately owned clean water projects are eligible for financing or assistance under this cha…

§ 4759. Regulations The Secretary and the Bond Bank may adopt rules and policies necessary to implement the provisions of this chapter in order to ensure the self-sustaining nature of the funds created under section 4753 of this chapter, and also to ensure compliance with the req…

§ 4760. Contractual authority; reports (a) The Secretary and the Bond Bank may enter into agreements on behalf of the State with agencies of the United States of America as may be necessary to obtain grants and awards in furtherance of the stated purposes for which the loan funds…

§ 4761. Noncontestability No action at law or in equity shall be brought or maintained that directly or indirectly challenges, attacks, or questions or in any manner contests the formation, or the existence as a body corporate and politic of any municipality whose bonds, notes, o…

§ 4762. Delinquent loan payments Delinquent loan payments due the bank under section 4755 of this title may, with an interest rate of ten percent per annum greater than the interest rate of the loan, be recovered by action in a court of competent jurisdiction against the politica…

§ 4763. Loans to municipalities for privately owned clean water projects (a) Where the Secretary has determined that a privately owned clean water project is the preferred alternative to abate or control a pollution problem or to provide water quality benefits, a loan may be made…

§ 4763a. Loans to municipalities for privately owned potable water supplies When a household has been involuntarily disconnected from a public water supply system and that disconnection did not occur as a result of nonpayment of fees, a loan may be made to a municipality from the…

§ 4763b. Loans to individuals for failed wastewater systems and failed potable water supplies (a) Notwithstanding any other provision of law to the contrary, when the wastewater system or potable water supply serving only single-family and multifamily residences either meets the …

§ 4763c. Loans to municipalities for municipal public water supply systems (a) The Secretary may certify to the Vermont Municipal Bond Bank established by section 4571 of this title the award of a loan to a municipality to assist with a public water supply system project, when th…