Form and Nature of Bonds and Notes

V.S.A. tit. 24, ch. 119, subch. 4

in effect

24 V.S.A. § 4621 Form of obligation; faith and credit

4621. Form of obligation; faith and credit (a) Bonds and notes issued under this chapter are not in any way a debt or liability of the State and do not create or constitute any indebtedness, liability or obligation of the State nor are they or do they constitute a pledge of the faith and credit of the State but all such bonds and notes, unless funded or refunded by bonds or notes of the Bank, are payable solely from revenues or funds pledged or available for their payment as authorized herein. Each bond and note other than bonds or notes issued in book entry form must contain on its face a statement to the effect that the Bank is obligated to pay the principal thereof and the interest thereon only from revenues or funds of the Bank and that the State is not obligated to pay the principal or interest and that neither the faith and credit nor the taxing power of the State is pledged to the payment of the principal of or the interest on the bonds or notes. (b) The State does pledge to and agree with the holders of the bonds or notes issued under this chapter, that the State will not limit or restrict the rights hereby vested in the Bank to purchase, acquire, hold, sell, or dispose of municipal bonds, revenue bonds, or other investments or to make loans to governmental units or to establish and collect such fees or other charges as may be convenient or necessary to produce sufficient revenues to meet the expenses of operation of the Bank, and to fulfill the terms of any agreement made with the holders of its bonds or notes or in any way impair the rights or remedies of the holders of those bonds or notes until the bonds and notes, together with interest thereon, and interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of the holders, are fully met, paid, and discharged. Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1983, No. 12, § 2, eff. March 29, 1983; 1987, No. 55, § 13, eff. May 15, 1987.

24 V.S.A. § 4622 Negotiability of bonds or notes

4622. Negotiability of bonds or notes Whether or not the notes and bonds are of such form and character as to be negotiable instruments under the terms of the Uniform Commercial Code 9A V.S.A. § 1-101 et seq., the notes and bonds are hereby made negotiable instruments within the meaning of and for all the purposes of said Uniform Commercial Code, subject only to the provisions of the notes and bonds for registration or for their issuance in book entry form. Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1983, No. 12, § 3, eff. March 29, 1983.

24 V.S.A. § 4623 Bonds or notes as legal investment

4623. Bonds or notes as legal investment Notwithstanding any other law, the State and all public officers, governmental units, and agencies thereof, all banks, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business, and all executors, administrators, guardians, trustees, and other fiduciaries may legally invest any sinking funds, monies, or other funds belonging to them or within their control in any bonds or notes issued under this chapter, and these bonds or notes are authorized security for any and all public deposits. Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.

24 V.S.A. § 4624 Tax exemption

4624. Tax exemption All property of the Bank is public property devoted to an essential public and governmental function and purpose and is exempt from all taxes and special assessments of the State or any subdivision thereof. All bonds or notes issued under this chapter are issued by a body corporate and public of this State and for an essential public and governmental purpose and those bonds and notes, and the interest thereon and the income therefrom, and all fees, charges, funds, revenues, income, and other monies pledged or available to pay or secure the payment of those bonds or notes, or interest thereon, are exempt from taxation except for transfer inheritance and estate taxes. Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/24/119Fetched: 10/21/2026