Powers and Prohibitions

V.S.A. tit. 24, ch. 119, subch. 3

in effect

24 V.S.A. § 4591 General powers

4591. General powers The Bank has the following powers for carrying out the purposes of this chapter: (1) to sue and be sued; (2) to adopt an official seal and alter it at pleasure; (3) to make and enforce rules for the conduct of its business and for use of its services and facilities; (4) to maintain an office at any place within the State; (5) to acquire, hold, use, and dispose of its income, revenues, funds, and monies; (6) to acquire, rent, lease, hold, use, and dispose of other personal property for its purposes; (7) to borrow money and to issue its negotiable bonds or notes and to provide for and secure the payment thereof and to provide for the rights of the holders thereof, and to purchase, hold, and dispose of any of its bonds or notes; (8) to fix and revise from time to time and charge and collect fees and charges for the use of its services or facilities; (9) to accept gifts or grants of property, funds, money, materials, labor, supplies, or services from the United States of America or from any governmental unit or any person, firm, or corporation, and to carry out the terms or provisions or make agreements with respect to any gifts or grants, and to do any and all things necessary, useful, desirable, or convenient in connection with procuring, acceptance, or disposition of gifts or grants; (10) to do anything authorized by this chapter, through its officers, agents, or employees or by contracts with any person, firm, or corporation; (11) to enter into and enforce all contracts necessary, convenient, or desirable for the purposes of the Bank or pertaining to any loan to a governmental unit or any purchase or sale of municipal bonds or revenue bonds or other investments or to the performance of its duties and execution or carrying out of any of its powers under this chapter; (12) to purchase or hold municipal bonds and revenue bonds at such prices and in such manner as the Bank deems advisable, and to sell municipal bonds and revenue bonds acquired or held by it at such prices without relation to cost and in such manner as the Bank deems advisable, all consistent with the policy of the State as declared in section 2 of this act; (13) to invest any funds or moneys of the Bank not then required for loan to governmental units and for the purchase of municipal bonds or revenue bonds, in the same manner as permitted for investment of funds belonging to the State or held in the Treasury, except as otherwise provided by this chapter; (14) to prescribe any form of application or procedure required of a governmental unit for the loan or purchase of its municipal bonds or revenue bonds, and to fix the terms and conditions of that loan or purchase and to enter into agreements with governmental units with respect to any loan or purchase; (15) to do all things necessary, convenient, or desirable to carry out the powers expressly granted or necessarily implied in this chapter; (16) to maintain and administer the special funds of the State established pursuant to chapter 120 of this title. Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1985, No. 127 (Adj. Sess.), § 2, eff. April 21, 1986; 1987, No. 55, §§ 7-9, eff. May 15, 1987; 1987, No. 75, § 2.

24 V.S.A. § 4592 Supplementary powers

4592. Supplementary powers The Bank, in addition to any other powers granted in this chapter, has the following powers: (1) In connection with any loan to a governmental unit, to consider the need, desirability, or eligibility of the loan, the ability of the governmental unit to secure borrowed money from other sources and the costs thereof, and the particular public improvement or purpose to be financed by the municipal bonds or revenue bonds to be purchased by the Bank. (2) To charge for its costs and services in review or consideration of any proposed loan to a governmental unit or purchase of municipal bonds or revenue bonds of a governmental unit, and to charge therefor whether or not the loan is made or the municipal bonds or revenue bonds are purchased. (3) To establish any terms and provisions with respect to any loan to governmental units through the purchase of municipal bonds or revenue bonds by the Bank, including date and maturities of the bonds, provisions as to redemption or payment prior to maturity, and any other matters that are necessary, desirable, or advisable in the judgment of the Bank. (4) To conduct examinations and hearings and to hear testimony and take proof, under oath or affirmation, at public or private hearings, on any matter material for its information and necessary to carry out this chapter. (5) To issue subpoenas requiring the attendance of witnesses and the production of books and papers pertinent to any hearing before the Bank, or before one or more of the directors of the Bank appointed by it to conduct the hearing. (6) To apply to any court, having territorial jurisdiction of the offense, to have punished for contempt any witness who refuses to obey a subpoena, or who refuses to be sworn or affirmed to testify, or who is guilty of any contempt after summons to appear. (7) To procure insurance against any losses in connection with its property, operations, or assets in such amounts and from such insurers as it deems desirable. (8) To the extent permitted under its contracts with the holders of bonds or notes of the Bank, to consent to any modification of the rate of interest, time, and payment of any installment of principal or interest, security, or any other term of bond or note, contract, or agreement of any kind to which the Bank is a party. (9) To issue its bonds or notes that are secured by neither the Reserve Fund nor the Revenue Bond Reserve Fund, but which may be secured by such other funds and accounts as may be authorized by the Bank from time to time. (10) To issue bonds, other forms of indebtedness, or other financing obligations or arrangements for projects relating to renewable energy, energy efficiency, climate adaptation, and projects that otherwise result in the reduction of greenhouse gas emissions. Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, §§ 10, 11, eff. May 15, 1987; 2009, No. 45, § 15k, eff. May 27, 2009; 2023, No. 72, § 27, eff. June 19, 2023.

24 V.S.A. § 4593 Prohibited acts

4593. Prohibited acts Under this chapter, a bank may not: (1) make loans of money to any person, firm, or corporation other than a government or a governmental agency or subdivision, or purchase securities issued by any person, firm, or corporation other than a governmental unit or for investment except as provided in this chapter; (2) emit bills of credit, or accept deposits of money for time or demand deposit, or administer trust, or engage in any form or manner in, or in the conduct of, any private or commercial banking business, or act as a savings bank or savings and loan association; (3) be or constitute a bank or trust company within the jurisdiction or under the control of the Department of Financial Regulation of the State, or the Commissioner thereof, or the Comptroller of the Currency of the United States of America or the Department of the Treasury thereof; or (4) be or constitute a bank, banker, or dealer in securities within the meaning of or subject to the provisions of any securities, securities exchange, or securities dealers law, of the United States of America or of this State or of any other state. Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 180 (Adj. Sess.), § 38.

24 V.S.A. § 4594 Annual report; audit

4594. Annual report; audit On or before the last day of February in each year, the Bank shall make a report of its activities for the preceding calendar year to the Governor and to the General Assembly. Each report shall set forth a complete operating and financial statement covering its operations during the year. The Bank shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants and the cost thereof shall be considered an expense of the Bank and a copy thereof shall be filed with the State Treasurer. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this subsection. Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 2013, No. 142 (Adj. Sess.), § 39.

24 V.S.A. § 4595 Annual budget

4595. Annual budget (a) On or before December 1 in each year, the Bank shall adopt an annual budget for the succeeding year. The budget shall set forth the general categories of expected expenditures and the amount on account of each and shall include a provision or reserve for contingencies or over expenditures as well as any additional material as the Bank may determine. Copies of the annual budget certified by the Chair of the Bank shall be promptly filed with the State Treasurer and the Director of Budget and Management and the annual budget shall not be effective until it is so filed. (b) If for any reason the Bank does not adopt the annual budget on or before December 1, the budget for the preceding year shall be in effect for that year until the annual budget for the year is adopted. (c) The Bank may at any time adopt an amended annual budget for the current calendar year, but the amended annual budget may not supersede any prior budget until it is approved by the State Treasurer as reasonable and necessary, and filed as required in the case of the annual budget. Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970.

24 V.S.A. § 4596 Care and custody of bonds

4596. Care and custody of bonds The Bank may enter into agreements or contracts with any bank, trust companies, banking or financial institutions within or without the State as may be necessary, desirable, or convenient in the opinion of the Bank for rendering services to the Bank in connection with the care, custody, or safekeeping of municipal bonds, revenue bonds, or other investments held or owned by the Bank and services in connection with the payment or collection of amounts payable as to principal or interest, and for services in connection with the delivery to the Bank of municipal bonds, revenue bonds, or other investments purchased by it or sold by it, and to pay the cost of those services. The Bank may also, in connection with any of the services to be rendered by any banks, trust companies, or banking or financial institutions as to the custody and safekeeping of any of its municipal bonds, revenue bonds, or investments, require security in the form of collateral bonds, surety agreements, or security agreements in such form and amount as, in the opinion of the Bank, is necessary or desirable for the purpose of the Bank. Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, § 12, eff. May 15, 1987.

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