General Provisions

V.S.A. tit. 10, ch. 12, subch. 1

in effect

10 V.S.A. § 210 Statutory purposes

210. Statutory purposes The statutory purpose of the exemption for local development corporations in section 236 of this title is to promote economic development. Added 2013, No. 200 (Adj. Sess.), § 7.

10 V.S.A. § 211 Legislative findings

211. Legislative findings (a) The Legislature finds that it is necessary to alleviate and prevent unemployment and underemployment and to raise the per capita income within the State, that the development and increase of industry, including the further processing of agricultural products, within the State will promote the prosperity and general welfare of all citizens, and that this chapter is necessary and desirable in order to accomplish these purposes. The Legislature also finds that it is necessary and desirable to encourage the development, production, and distribution of renewable energy resources within the State. (b) The Legislature further finds that small businesses are responsible for generating the majority of new jobs, and substantial economic development opportunity exists encouraging entrepreneurial development and innovation in Vermont. The Legislature further finds that business incubator facilities have proved to be effective tools to help small and start-up businesses through the difficult early years with low-cost, flexible space, necessary support services at an affordable cost, and with managerial and technical assistance on such items as bookkeeping, inventory control, marketing and personnel. Vermont’s experience with business incubators confirms their value in nurturing jobs and entrepreneurship. The Legislature further finds that business incubator facilities related to institutions of higher education nationwide have been an excellent source for successful business enterprises. (c) Therefore, the general public advantage requires: (1) an increased inventory of industrial sites and modern buildings suitable to house new or existing business enterprises; (2) the expansion, reclamation, or renovation of existing buildings to house new or existing business enterprises; (3) low-cost capital available to local development corporations for the purchase of land for industrial sites, for planning and development of industrial parks, and for the construction of speculative industrial buildings and small business incubator facilities; (4) low-cost capital available to industrial enterprises to provide land, buildings, and equipment for industrial expansion; (5) aid to existing business enterprises in the State when such aid will prevent serious reduction in employment or will enhance or increase the existing level of employment; (6) low-cost capital for the abatement of industrial air and water pollution and general improvement of the disposal of industrial waste; (7) low-cost capital to assist Vermont farmers to farm; (8) low-cost capital available for the purchase of land, buildings, and equipment to process Vermont milk, including the processing of milk into cheese, yogurt, or other value-added milk products; and (9) low-cost capital to assist the wood products enterprises to provide an adequate supply of mill quality chips for Vermont public and private schools and other entities that rely upon wood as a primary source of heating. Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 217 (Adj. Sess.), § 4; 1985, No. 81, § 2; 1985, No. 136 (Adj. Sess.), § 1, eff. April 24, 1986; 2003, No. 63, § 73, eff. June 11, 2003; 2003, No. 121 (Adj. Sess.), § 91, eff. June 8, 2004; 2025, No. 178 (Adj. Sess.), § 10, eff. July 1, 2026.

10 V.S.A. § 212 Definitions

212. Definitions As used in this chapter, with the exception of subchapter 16: (1) “Authority” means the Vermont Economic Development Authority established under section 213 of this title. (2) “Bond” means a note, bond, debenture, or any other evidence of indebtedness issued by a municipality or by the State of Vermont under subchapter 4 of this chapter to finance a project in whole or in part or to refund indebtedness incurred for that purpose. (3) “Debt service,” as used in subchapter 4 of this chapter, means the amounts required to pay bonds according to their terms and shall include amounts representing principal, premium, and interest, including interest on overdue payments. (4) “Financing document,” as used in subchapter 4 of this chapter, means a written instrument establishing the rights and responsibilities of a municipality or the Authority and the user with respect to an eligible facility financed by the issue of bonds. A financing document may be in the nature of a sale and leaseback, a lease purchase, a conditional sale, an installment sale, a secured or unsecured loan, a loan and mortgage, or other similar transaction, may bear any appropriate title and may involve property in addition to the property financed by the bonds. The municipality’s or Authority’s ownership or possessory interest in the eligible facility under a financing document may be that of owner, lessor, lessee, conditional or installment vendor, mortgagor, mortgagee, or otherwise, but the municipality or the Authority need not have any ownership or possessory interest in the facility. (5) “Governing body” means the board of aldermen or city council of a city, the board of selectboard members of a town, and the trustees of an incorporated village. (6) “Eligible facility” or “eligible project” means any industrial, commercial, or agricultural enterprise or endeavor approved by the Authority used in a trade or business whether or not such business is operated for profit, including land and rights in land, air, or water; buildings; structures; machinery; and equipment of such eligible facilities or eligible projects, except that an eligible facility or project shall not include the portion of an enterprise or endeavor relating to the sale of goods at retail where such goods are manufactured primarily out of State, and except further that an eligible facility or project shall not include the portion of an enterprise or endeavor relating to housing unless otherwise authorized in this chapter. Such enterprises or endeavors may include: (A) Quarrying; mining; manufacturing; processing, including the further processing of agricultural products; assembling; or warehousing of goods or materials for sale or distribution or the maintenance of safety standards in connection therewith, and including Vermont-based manufacturers that are adversely impacted by the State’s regulation or ban of products as they transition from the manufacture of the regulated or banned products to the design and manufacture of environmentally sound substitutes. (B) The conduct of research and development activities, including research and development of computer software and telecommunications equipment. (C) Use as the national or regional headquarters for a multistate business enterprise or use as the national headquarters of a nonprofit organization whose purpose is the promotion of business, industry, or agriculture, including the registry of animal breeds. (D) Collecting or processing any kind of waste material for reuse or disposal. (E) Reducing, mitigating, or eliminating pollution of land, air, or water by substances, heat, or sound. (F) For the purposes of subchapter 4 of this chapter only, in addition to the foregoing, the conduct of any trade or business that is eligible for tax-exempt financing under the U.S. Internal Revenue Code. (G) For purposes of subchapter 4 of this chapter only, transporting of goods, materials, or agricultural products for sale or distribution or the maintenance of safety standards in connection therewith, including railroad terminals, trucking terminals, and airport facilities. (H) Use as a small business incubator facility. (I) Processing or converting post-consumer materials into industrial feed stocks or manufacturing products from these feed stocks, or both, excluding the converting of recyclable materials into a fuel or fuel product. As used in this subdivision (I), “post-consumer materials” means only those products generated by a business or a consumer that have served their intended end uses and that have been separated or diverted from solid waste. (J) Travel and tourism projects and enterprises, and related recreational activities, provided that the project or enterprise will maintain a reasonable level of full-time employment throughout the year consistent with the size and nature of the business and general business custom in the industry. (K) The business of information technology or the collection, processing, or management of data, documents, or records. (L) A captive or commercial insurance underwriter; a mortgage, commercial, or consumer credit provider; or an entity engaged in underwriting or brokering services. (M) A renewable energy plant, as defined in 30 V.S.A. § 8002, if the construction of the plant requires a certificate of public good under 30 V.S.A. § 248 and all or part of the electricity generated by the plant will be under contract to a Vermont electric distribution utility. (N) Industrial park planning, development, or improvement. (O) For purposes of subchapter 5 of this chapter, a telecommunications plant, as defined in 24 V.S.A. § 1911(2), owned by a municipality individually or in concert with one or more other municipalities as a communications union district established under 30 V.S.A. chapter 82. (P) Any combination of the activities, uses, or purposes specified in this subdivision (6). An eligible facility may include structures, appurtenances incidental to an eligible project, such as utility lines, storage accommodations, offices, dependent care facilities, or transportation facilities. (Q) Businesses providing intangible products and services, excluding the following: (i) businesses engaged in pyramid sale distribution plans, where a participant’s primary incentive is based on the sales made by an ever- increasing number of participants; (ii) businesses deriving more than one-third of their gross annual revenue from legal gambling activities; (iii) private clubs and businesses that limit the number of memberships for reasons other than capacity; and (iv) businesses principally engaged in teaching, instructing, counseling, or indoctrinating religion or religious beliefs, whether in a religious or secular setting. (R) Mixed-use properties, provided that not less than 50 percent of the total square footage is dedicated for commercial use. (S) After consultation with and deference to the Vermont Housing Finance Agency on applications that are eligible for financing from both the Authority and the Agency, financing for one or more of the following types of long-term care facilities licensed by the State pursuant to 33 V.S.A. chapter 71 and other applicable law, and any independent living facility, as defined in 32 V.S.A. § 9202(18), associated with the licensed facility: (i) an assisted living residence; (ii) a home for the terminally ill; (iii) a nursing home; (iv) a residential care home; and (v) a therapeutic community residence. (T) Any capital improvement; purchase of receivables, property, assets, commodities, bonds, or other revenue streams or related assets; working capital program or liability; or other insurance program. (U) After consultation with, and with deference to, the Vermont Housing Finance Agency on applications that are eligible for financing from both the Authority and the Agency, multiunit housing developments of five or more units when requested by, and jointly financed with, a financing lender, except that the Authority shall not finance portions or phases of a multiunit housing development that: (i) the Agency determines is being primarily developed for occupancy by persons and families of low and moderate income as defined in subdivision 601(11) of this title; or (ii) utilizes funding issued by the Agency, whether in the form of debt or tax credits. (7) “Industrial park” means an area of land planned and designed as a location for one or more industrial buildings, including adequate access roads, utilities, and other services necessary for eligible facilities. (8) “Industrial park planning and development” means the basic architectural and engineering services needed to determine site and land use feasibility, and the planning and carrying out of land improvements necessary to make industrial land usable. (9) [Repealed.] (10) “Local development corporation” means any nonprofit organization incorporated in the State for the purpose of fostering, encouraging, and assisting the physical location of business enterprises within the State and having as its principal purpose the industrial and economic development of one or more political subdivisions, and shall include the Northeastern Vermont Development Association and any State development company organized under subdivision 216(13) of this title; however, in addition to the foregoing, for the purpose of providing assistance to small business incubator facilities, any nonprofit organization that enters into a written agreement with the Authority to establish, operate, and administer a small business incubator facility, including municipalities, local or regional nonprofit development corporations, and higher educational institutions, shall have the rights and obligations of a local development corporation under this chapter. (11) through (15) [Repealed.] (16) “Municipality” means a city, town, or incorporated village. (17) “Political subdivision” means a city, town, incorporated village, or county. (18) “Project” or “eligible facility” means the creation, establishment, acquisition, construction, expansion, improvement, reclamation, or renovation of an eligible facility. (19) “Project costs” means any costs or expenses reasonably incidental to a project and may without limitation include the costs of: (A) issuing bonds under subchapter 4 of this chapter to finance a project; (B) acquiring land, buildings, structures, and facilities, whether by lease, purchase, construction, or otherwise; (C) acquiring rights in or over land, air, or water; (D) improving land and improving buildings, structures, and facilities by remodeling, reconstruction, replacement, or enlargement; (E) acquiring and installing machinery and equipment; (F) obtaining professional or advisory services; (G) interest prior to and during construction and until one year after the completion of a project; (H) creating reserves in connection with the issue of bonds under subchapter 4 of this chapter; and (I) acquiring or committing to acquire any federally guaranteed security and pledging the proceeds thereof to secure the payment of bonds. (20) “Security document,” as used in subchapter 4 of this chapter, means a written instrument establishing the rights and responsibilities of a municipality or the Authority and the holders of bonds issued to finance an eligible facility and may provide for a trustee for the benefit of those bondholders. A security document may contain an assignment, pledge, mortgage, or other encumbrance of all or part of the municipality’s or Authority’s interest in, or right to receive payments with respect to, an eligible facility under a financing document and may bear any appropriate title. A financing document and a security document may be combined as one instrument. (21) “Speculative building” means a basic structure of flexible design erected by a local development corporation for eventual sale or lease to a purchaser or tenant requiring eligible facilities. (22) “Tenant” means the tenant or occupier of an eligible facility or small business incubator facility. (23) “User,” as used in subchapter 4 of this chapter, means the person or local development corporation that is: (A) entitled to the use or occupancy of an eligible facility or is lessor to the person entitled to the use or occupancy of an eligible facility; and (B) primarily responsible for making payments sufficient to meet debt service on the bonds issued to finance the facility. (24) “Processing” means to subject a product to a particular method, system, or technique of preparation, handling, or other treatment designed to effect a particular result. (25) “Federally guaranteed security” means any security, investment, or evidence of indebtedness that is either directly or indirectly insured, or guaranteed, in whole or in part, as to the repayment of principal or interest, or both, by the United States or any instrumentality thereof. (26) “Federally insured project loan” means any loan to finance or refinance the cost of a project that is either directly or indirectly insured or guaranteed, in whole or in part, as to the repayment of principal or interest, or both, by the United States or any instrumentality thereof, or any commitment by the United States or any instrumentality thereof to so insure or guarantee such a loan. (27) “Small business incubator facility” means a building, group of buildings, or part of a building where small and growing businesses may obtain small units of space available for purchase or lease at below-market rates or on flexible terms, shared office support services, and financial and general business management advice and assistance. (28) “Loan,” for the purposes of subchapters 5, 7, and 10 of this chapter, means a loan or a financing lease, provided that such lease transfers the ownership of the leased property to the lessee following the payment of all required lease payments as specified in the lease agreement. Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18, § 1, eff. March 27, 1975; 1975, No. 187 (Adj. Sess.), § 1; 1975, No. 217 (Adj. Sess.), §§ 5, 7; 1977, No. 52, § 1, eff. April 22, 1977; 1981, No. 37, § 1; 1981, No. 54, §§ 1, 6, 7, 12, eff. April 28, 1981; 1983, No. 33, § 1, eff. April 22, 1983; 1983, No. 38, § 1; 1983, No. 159 (Adj. Sess.), § 1, eff. April 14, 1984; 1985, No. 136 (Adj. Sess.), §§ 2-5, eff. April 24, 1986; 1989, No. 237 (Adj. Sess.), § 1; 1991, No. 202 (Adj. Sess.), § 9, eff. May 27, 1992; 1991, No. 212 (Adj. Sess.), §§ 1-3, eff. May 27, 1992; 1993, No. 89, §§ 2, 3, eff. June 15, 1993; 1995, No. 46, §§ 2, 3; 1995, No. 184 (Adj. Sess.), § 5; 2005, No. 61, § 5; 2013, No. 161 (Adj. Sess.), § 72; 2013, No. 199 (Adj. Sess.), § 36; 2015, No. 41, § 22, eff. June 1, 2015; 2015, No. 51, § E.2, eff. June 3, 2015; 2015, No. 56, § 14; 2021, No. 91 (Adj. Sess.), § 1, eff. Apr. 20, 2022; 2025, No. 26, § 1, eff. July 1, 2025; 2025, No. 178 (Adj. Sess.), § 11, eff. July 1, 2026; 2025, No. 179 (Adj. Sess.), § 5, eff. July 1, 2026.

10 V.S.A. § 213 Authority; organization

213. Authority; organization (a) The Vermont Economic Development Authority is hereby created and established as a body corporate and politic and a public instrumentality of the State. The exercise by the Authority of the powers conferred upon it in this chapter constitutes the performance of essential governmental functions. (b) The Authority shall have 15 voting members consisting of the Secretary of Commerce and Community Development, the State Treasurer, the Secretary of Agriculture, Food and Markets, the Commissioner of Forests, Parks and Recreation, and the Commissioner of Public Service, each of whom shall serve as an ex officio member, or a designee of any of the aforementioned; and 10 members, who shall be residents of the State of Vermont, appointed by the Governor with the advice and consent of the Senate. The appointed members shall be appointed for terms of six years and until their successors are appointed and qualified. Appointed members may be removed by the Governor for cause and the Governor may fill any vacancy occurring among the appointed members for the balance of the unexpired term. (c) The Authority shall elect a chair from among its appointed members, and a vice chair and other officers from among its members and shall employ a manager who shall hold office at the Authority’s pleasure and who, unless the individual is a member of the classified service under 3 V.S.A. chapter 13, shall receive such compensation as may be fixed by the Authority. A quorum shall consist of eight members. Members disqualified from voting under section 214 of this title shall be considered present for purposes of determining a quorum. No action of the Authority shall be considered valid unless the action is supported by a majority vote of the members present and voting and then only if at least five members vote in favor of the action. (d) [Repealed.] (e) Appointed members of the Authority shall be compensated at the rate of $50.00 a day for time spent in the performance of their duties and they shall be reimbursed for necessary expenses incurred in the performance of their duties. (f) The State of Vermont reserves the right, at its sole discretion, and at any time, to alter or change the structure, organization, programs, or activities of the Authority, including the power to terminate the Authority, subject to any limitation on the impairment of contracts entered into by the Authority. (g) Any net earnings of the Authority, beyond that necessary for retirement of the indebtedness or to implement the public purposes or programs of the State of Vermont, shall not inure to the benefit of any person other than the State of Vermont. (h) Upon dissolution of the Authority, title to all property owned by the Authority shall vest in the State of Vermont. (i) [Repealed.] Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18, § 2, eff. March 27, 1975; 1975, No. 187 (Adj. Sess.), § 7; 1977, No. 52, § 2, eff. April 22, 1977; 1987, No. 203 (Adj. Sess.), § 1, eff. May 27, 1988; 1989, No. 199 (Adj. Sess.), § 1; 1993, No. 89, § 3(a), eff. June 15, 1993; 1995, No. 190 (Adj. Sess.), § 1(a); 2003, No. 42, § 2, eff. May 27, 2003; 2013, No. 87, § 6, eff. June 17, 2013; 2023, No. 53, § 5, eff. June 8, 2023; 2025, No. 26, § 1, eff. July 1, 2025.

10 V.S.A. § 214 Members; disqualification

214. Members; disqualification A member of the Authority may not participate in any decision: (1) under subchapter 3 of this chapter affecting a local development corporation if the member is a stockholder or member of that corporation; (2) upon any loan under subchapter 5 of this chapter if the member is a member, director, trustee, employee, or officer of; or has any interest direct or indirect in; or owns any stock, bonds, or other liabilities issued by or authorized by the prospective mortgagor, mortgagee, or tenant; (3) upon a bond issue under subchapter 4 of this chapter if the member is an officer or director of a bank or trust company that is a prospective purchaser of the bonds or a prospective trustee under the trust indenture securing the bonds. Added 1973, No. 197 (Adj. Sess.), § 1; amended 1977, No. 52, § 3, eff. April 22, 1977; 2025, No. 26, § 1, eff. July 1, 2025.

10 V.S.A. § 215 Manager; duties

215. Manager; duties The manager shall be the chief administrative officer of the Authority and shall direct and supervise the administrative affairs and technical activities of the Authority in accordance with any rules, policies, and procedures set forth by the Authority. In addition to any other duties, the manager shall: (1) attend all meetings of the Authority, act as its secretary and keep minutes of its proceedings; (2) approve all accounts of the Authority, including accounts for salaries, per diems, and allowable expenses of any employee or consultant thereof, and expenses incidental to the operation of the Authority; (3) make an annual report to the Authority documenting the actions of the Authority, and such other reports as the Authority may request; (4) work closely with the Agency of Commerce and Community Development and provide assistance to the various divisions of that Agency when requested to facilitate the planning and financing of projects; and (5) [Repealed.] (6) perform such other duties as may be directed by the Authority in the carrying out of the purposes of this chapter. Added 1973, No. 197 (Adj. Sess.), § 1; amended 1995, No. 190 (Adj. Sess.), § 1(a); 2025, No. 26, § 1, eff. July 1, 2025.

10 V.S.A. § 216 Authority; general powers

216. Authority; general powers The Authority is hereby authorized: (1) To sue and be sued in its own name and plead and be impleaded; service of process upon it in any action shall be made by service upon the Secretary of State either in hand or by leaving a copy of the process at the Secretary’s office. (2) To adopt an official seal and alter the same. (3) To adopt and from time to time amend bylaws and rules for the calling and conduct of its meetings and for the conduct of its affairs, including rules, policies, and procedures relating to applications for financial assistance and disclosure of information supplied to it. (4) To establish reasonable priorities among the types and locations of projects to be undertaken or aided under this chapter, and to use its discretion in the selection and combining of programs to be utilized in the undertaking or aiding of such projects. (5) To maintain its principal office in Washington County and other offices at such place or places as it may designate. (6) To employ such employees, who may be in the classified system under 3 V.S.A. chapter 13 within the discretion of the Authority, and to employ or contract with agents, consultants, legal advisors, and other experts, as may be necessary or desirable for its purposes, to determine the qualifications, duties, and compensation of such employees, agents, consultants, legal advisors, and experts and to utilize the services of other governmental agencies and departments. (7) To contract with the State of Vermont or any agency or political subdivision thereof, public corporations or bodies, private corporations, or individuals for any purposes related to industrial development. (8) To borrow money, make and issue negotiable bonds, notes, commercial paper, and give other evidences of indebtedness or obligations, and give security therefor, including the sale, assignment, or pledge of the Authority’s interest in loans. Such obligations may be incurred for any of the Authority’s corporate purposes, including the expenses of preparing, issuing, and marketing obligations issued for such purposes, and the establishment of reserve funds, including reserve funds created under section 219 of this title. Such obligations shall be in such form and denominations, and with such terms and provisions, including the maturity date or dates, redemption provisions, and other provisions necessary or desirable. Such obligations shall be either taxable or tax-exempt, and shall be noninterest bearing, or bear interest at such rate or rates, which may be fixed or variable, as may be sufficient or necessary to effect the issuance and sale or resale thereof. The Authority is authorized to enter into such agreements with other persons as the Authority deems necessary or appropriate in connection with the issuance, sale, and resale of such obligations, including without limitation, trust indentures, bond purchase agreements, disclosure agreements, remarketing agreements, agreements providing liquidity or credit facilities, bond insurance, or other credit enhancements in connection with such obligations. The Authority is authorized to resell or retire any such notes prior to the stated maturity thereof. (9) To make such charges against local development corporations as may be mutually agreed upon to assist in meeting the expenses of the Authority incurred under this chapter, including any interest charged by the State Treasurer. (10) To administer its own funds and to invest or deposit funds that are not needed currently to meet the obligations of the Authority. (11) To acquire, hold, and dispose of real and personal property; to enter into all contracts, leases, agreements, and arrangements and to do all lawful acts and things necessary or incidental to the performance of its duties and the execution of its powers under this chapter. (12) To make such payments in lieu of taxes for highway maintenance, fire protection, or for other services as the Authority considers advisable, in the event property owned by the Authority is occupied in whole or in part. (13) To cause to be incorporated in Vermont a nonprofit corporation that will qualify as a State development company under 15 U.S.C. § 695 and regulations promulgated pursuant thereto. The voting members of the Authority shall be members of the company and shall constitute the board of directors of the company. The company shall be organized and operate under the nonprofit corporation laws of the State of Vermont to the extent not inconsistent herewith. The Authority shall have the power to contract with the company to provide staff and management needs of the company. The Authority is authorized to contribute to the capital of the company in an amount the Authority determines is necessary and appropriate. (14) To incorporate one or more nonprofit corporations in Vermont to fulfill the goals of this chapter. Such corporation shall be empowered to borrow money and to receive and accept gifts, grants, or contributions from any source, provided that such gifts, grants, or contributions are not less than $5,000.00 from any one source for the period of one year and provided that such nonprofit corporation provides business loans of not less than $2,500.00 to any particular entity or individual. The voting members of the Authority shall be directors of the corporation. The corporation shall be organized and operate under the nonprofit corporation laws of the State of Vermont. The Authority may contract with the corporation to provide staff and management needs of the company. The Authority may contribute to the capital of the corporation in an amount the Authority determines is necessary and appropriate. (15) To delegate to loan officers the power to review, approve, and make loans under this chapter and to disburse funds on such loans as set forth in the policies and procedures of the Authority. (16) To cause to be formed in Vermont a for-profit limited partnership, the purpose of which shall be to invest funds in commercial and agricultural enterprises that create job opportunities and support economic development. The Authority’s investment in the partnership may not exceed $2,000,000.00. To manage the operations of and attract investors to the partnership, the Authority is further authorized to cause to be formed in Vermont a for-profit limited liability company. The Authority’s investment in the limited liability company shall be determined by the Authority. (17) To contribute to the capital of the Vermont Agricultural Credit Program established pursuant to subchapter 16 of this chapter in an amount the Authority determines is necessary and appropriate. (18) To contribute to the capital of the Vermont Sustainable Energy Loan Fund established under subchapter 13 of this chapter in an amount the Authority determines is necessary and appropriate. Added 1973, No. 197 (Adj. Sess.), § 1; amended 1977, No. 52, §§ 4, 10, eff. April 22, 1977; 1977, No. 222 (Adj. Sess.), § 5, eff. July 2, 1978; 1981, No. 54, § 2, eff. April 28, 1981; 1983, No. 33, §§ 2, 3, eff. April 2, 1983; 1993, No. 210 (Adj. Sess.), § 229a; 1995, No. 46, §§ 4, 5, eff. April 20, 1995; 1995, No. 184 (Adj. Sess.), § 4; 1999, No. 131 (Adj. Sess.), § 1; 2003, No. 67, §§ 1, 2, eff. June 16, 2003; 2005, No. 137 (Adj. Sess.), § 1; 2011, No. 110 (Adj. Sess.), § 5, eff. May 8, 2012; 2013, No. 87, § 3, eff. June 17, 2013; 2015, No. 157 (Adj. Sess.), § A.2, eff. June 2, 2016; 2025, No. 26, § 1, eff. July 1, 2025; 2025, No. 178 (Adj. Sess.), § 12, eff. July 1, 2026.

10 V.S.A. § 217 Records; annual report; audit

217. Records; annual report; audit (a) The Authority shall keep an accurate account of all its activities and of all its receipts and expenditures. (b) Prior to February 1 in each year, the Authority shall submit a report of its activities for the preceding fiscal year to the Governor and to the General Assembly. The report shall set forth a complete operating and financial statement covering its operations during the year. The Authority shall cause an audit of its books and accounts to be made at least once in each year by a certified public accountant and its cost shall be considered an expense of the Authority and a copy 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. (c) The Auditor of Accounts of the State and the Auditor’s authorized representatives may at any time examine the accounts and books of the Authority, including its receipts, disbursements, contracts, funds, investments, and any other matters relating to its financial statements. (d) At such time as the Authority has exhausted all rights and remedies to enforce the terms of a financing document or mortgage serving as security for a loan, the identity of the borrower and the outstanding principal balance of the loan shall become a public record. Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18, § 3, eff. March 27, 1975; 1999, No. 131 (Adj. Sess.), § 1a; 2013, No. 142 (Adj. Sess.), § 16; 2025, No. 26, § 1, eff. July 1, 2025.

10 V.S.A. § 217a Application

217a. Application Among such other things as may be required by the Authority, any application for financing under this chapter shall state in detail on the application the nature and purpose of the business and its products for which the loan or revenue bonds are intended to benefit. Added 1983, No. 33, § 3a, eff. April 22, 1983; amended 1987, No. 203 (Adj. Sess.), § 3, eff. May 27, 1988; 2025, No. 26, § 1, eff. July 1, 2025.

10 V.S.A. § 218 Construction

218. Construction (a) The powers conferred by this chapter are supplemental and alternative to other powers conferred by law. (b) No notice, proceedings, or approval, including licensure under 8 V.S.A. chapter 73, shall be required with respect to any action taken under this chapter, except as provided in this chapter. (c) Purchases and contracts required for the establishment or expansion of an eligible facility may be made or let without regard to any provision of law relating to public purchases or contracts. (d) This chapter shall be liberally construed in order to effect its purposes. (e) The provisions of this chapter are severable, and the invalidity of any provision or provisions of this chapter shall not affect the validity of any other provision or provisions of this chapter. Added 1973, No. 197 (Adj. Sess.), § 1; amended 1987, No. 203 (Adj. Sess.), § 17, eff. May 27, 1988; 1993, No. 89, § 3(b), eff. June 15, 1993.

10 V.S.A. § 219 Reserve funds

219. Reserve funds (a) The Authority may create and establish one or more special funds, herein referred to as “debt service reserve funds,” and shall pay into each such debt service reserve fund: (1) Any monies appropriated and made available by the State for the purpose of such funds. (2) Any proceeds of the sale of notes or bonds, to the extent provided in the resolution or resolutions of the Authority authorizing the issuance thereof. (3) Any other monies or financial instruments such as surety bonds, letters of credit, or similar obligations, which may be made available to the Authority for the purpose of such fund from any other source or sources. All monies or financial instruments held in any debt service reserve fund, except as hereinafter provided, shall be used, as required, solely for the payment of the principal of the bonds secured in whole or in part by such fund or of the sinking fund payments with respect to such bonds, the purchase or redemption of such bonds, the payment of interest on such bonds, or the payment of any redemption premium required to be paid when such bonds are redeemed prior to maturity or to reimburse the issuer of a liquidity or credit facility, bond insurance, or other credit enhancement for the payment by such party of any of the foregoing amounts on the Authority’s behalf; provided, however, that the monies or financial instruments in any such fund shall not be drawn upon or withdrawn therefrom at any time in such amounts as would reduce the amount of such funds to less than the debt service reserve requirement established by resolution of the Authority for such fund as hereafter provided except for the purpose of making with respect to bonds secured in whole or in part by such fund payments, when due, of principal, interest, redemption premiums, and the sinking fund payments hereinafter mentioned for the payment of which other monies of the Authority are not available. Any income or interest earned by, or increment to, any debt service reserve fund due to the investment thereof may be transferred by the Authority to other funds or accounts of the Authority to the extent it does not reduce the amount of such debt service reserve fund below the debt service reserve requirement for such fund. (b) The Authority shall not at any time issue bonds or notes secured in whole or in part by a debt service reserve fund if upon the issuance of such bonds or notes the amount in such debt service reserve fund will be less than the debt service reserve requirement established by the resolution of the Authority for such fund, unless the Authority at the time of issuance of such bonds shall deposit in such fund from the proceeds of the bonds or notes so to be issued, or from other sources, an amount which together with the amount then in such fund, will not be less than the debt service reserve requirement established for such fund. The debt service reserve requirement for any debt service reserve fund shall be established by resolution of the Authority prior to the issuance of any bonds or notes secured in whole or in part by such fund and shall be the amount, determined by the Authority to be reasonably required in light of the facts and circumstances of the particular bond issue. (c) In computing the amount of the debt service reserve funds for the purpose of this section, securities in which all or a portion of such funds shall be invested shall be valued at par if purchased at par or at amortized value, as such term is defined by resolution of the Authority, if purchased at other than par. (d) In order to ensure the maintenance of the debt service reserve requirement in each debt service reserve fund established by the Authority, there may be appropriated annually and paid to the Authority for deposit in each such fund, such sum as shall be certified by the Chair of the Authority, to the Governor, the President of the Senate, and the Speaker of the House, as is necessary to restore each such debt service reserve fund to an amount equal to the debt service reserve requirement for such fund. The Chair shall annually, on or about February 1, make, execute, and deliver to the Governor, the President of the Senate, and the Speaker of the House a certificate stating the sum required to restore each such debt service reserve fund to the amount aforesaid, and the sum so certified may be appropriated, and if appropriated, shall be paid to the Authority during the then current State fiscal year. The principal amount of bonds or notes outstanding at any one time and secured in whole or in part by a debt service reserve fund to which State funds may be appropriated pursuant to this subsection shall not exceed $181,000,000.00, provided that the foregoing shall not impair the obligation of any contract or contracts entered into by the Authority in contravention of the Constitution of the United States. Added 1995, No. 184 (Adj. Sess.), § 4b; amended 2003, No. 67, § 3, eff. June 16, 2003; 2009, No. 78 (Adj. Sess.), § 15, eff. April 15, 2010; 2011, No. 110 (Adj. Sess.), § 3, eff. May 8, 2012; 2013, No. 87, § 7, eff. June 17, 2013; 2015, No. 157 (Adj. Sess.), § A.3, eff. June 2, 2016; 2017, No. 157 (Adj. Sess.), § 1; 2019, No. 79, § 17, eff. June 20, 2019.

10 V.S.A. § 220 Transfer from Indemnification Fund

220. Transfer from Indemnification Fund The State Treasurer shall transfer from the Indemnification Fund created in former section 222a of this title to the Authority all current and future amounts deposited to that Fund. Added 2015, No. 157 (Adj. Sess.), § A.4, eff. June 2, 2016.

10 V.S.A. § 220a The Vermont Jobs Fund

220a. The Vermont Jobs Fund (a) There is hereby created the Vermont Jobs Fund, hereinafter called the Fund, which shall be used by the Authority as a nonlapsing fund for the purposes of this chapter. To it shall be charged all operating expenses of the Authority not otherwise provided for and all payments of interest and principal required to be made by the Authority under this subchapter. To it shall be credited any appropriations made by the General Assembly for the purposes of this chapter and all payments required to be made to the Authority under this chapter, it being the intent of this section that the Fund shall operate as a revolving fund whereby all appropriations and payments made thereto may be applied and reapplied for the purposes of this chapter. Monies in the Fund may be loaned at interest rates to be set by the Authority for the following: (1) Loans to local development corporations under thischapter. (2) Direct loans as described in subchapter 5 of this chapter. (3) Loans for the financing of export activities under subchapter 9 of this chapter. (4) Other loans as the Authority may prescribe under subchapter 10 of this chapter. (b) Monies in the Fund may be loaned to the Vermont Small Business Development Corporation to support its lending operations as established pursuant to subdivision 216(14) of this title at interest rates and on terms and conditions to be set by the Authority. (c) Monies in the Fund may be loaned to the Vermont 504 Corporation to support its lending operations as established pursuant to subdivision 216(13) of this title at interest rates and on terms and conditions to be set by the Authority. (d) The Authority may loan money from the Fund to the Vermont Sustainable Energy Loan Fund established under subchapter 13 of this chapter at interest rates and on terms and conditions set by the Authority. Added 1973, No. 197 (Adj. Sess.), § 1; amended 1985, No. 81, § 3; 1995, No. 46, § 8, eff. April 20, 1995; 2003, No. 7, § 8, eff. April 25, 2003; 2003, No. 67, § 4, eff. June 16, 2003; 2009, No. 78 (Adj. Sess.), § 16, eff. April 15, 2010; 2013, No. 87, § 4; 2015, No. 157 (Adj. Sess.), § A.5, eff. June 2, 2016; renumbered from 10 V.S.A. § 234 and amended by 2025, No. 26, § 2, eff. July 1, 2025; 2025, No. 178 (Adj. Sess.), § 13, eff. July 1, 2026.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/10/012Fetched: 10/21/2026