Indebtedness Generally

V.S.A. tit. 24, ch. 53, subch. 1

in effect

24 V.S.A. § 1751 Definitions

1751. Definitions As used in this chapter: (1) “Municipal corporation” shall include a city, town, village, town school district, graded school district, or other incorporated, union, or unified school district or any entity providing educational services which is eligible to receive State aid under 16 V.S.A. chapter 123, a fire district, a union municipal district created under an intermunicipal agreement entered into and approved as provided in subchapter 3 of chapter 121 of this title, a regional mass transportation authority created under chapter 127 of this title, a local housing authority created under section 4003 of this title, a consolidated water or sewer district created under chapter 91 or chapter 105 of this title, or the unified towns and gores of Essex County. (2) “Legislative branch” shall mean the mayor and board of aldermen of a city, the selectboard of a town, the trustees of a village, the board of school directors of a school district, the trustees or prudential committee of a graded school or fire district, and the Board of Governors of the unified towns and gores of Essex County, and, with respect to other municipal corporations, the governing body designated by statute. (3) “Improvement” shall include, apart from its ordinary signification: (A) The acquiring of land for municipal purposes, the construction of, extension of, additions to, or remodeling of buildings or other improvements thereto, also furnishings, equipment, or apparatus to be used for or in connection with any existing or new improvement, work, department, or other corporate purpose, and also shall include the purchase or acquisition of other capital assets, including licenses and permits, in connection with any existing or new improvement benefiting the municipal corporation, and all costs incurred by the municipality in connection with the construction or acquisition of the improvement and the financing thereof, including capitalized interest, underwriters discount, the funding of reserves, and the payment of contributions to establish eligibility and participation with respect to loans made from any State revolving fund, to the extent such payment is consistent with federal law. (B) Pursuant to subchapter 2 of chapter 87 of this title, projects relating to renewable energy, as defined in 30 V.S.A. § 8002(17), or to eligible energy efficiency projects undertaken by owners of real property within the boundaries of the town, city, or incorporated village. Energy efficiency projects shall be those that are eligible under section 3267 of this title. Amended 1989, No. 111, § 1, eff. June 22, 1989; 1997, No. 62, § 61, eff. June 26, 1997; 2007, No. 4, § 2; 2009, No. 45, § 15f, eff. May 27, 2009; 2013, No. 161 (Adj. Sess.), § 72.

24 V.S.A. § 1752 Bonds; issuance

1752. Bonds; issuance Debt may be incurred and bonds issued under this subchapter for any improvement, but no bonds shall be issued for the purpose of providing funds for ordinary expenses of any municipal corporation, except as otherwise provided.

24 V.S.A. § 1752a Public libraries; privately owned municipality-supported libraries

1752a. Public libraries; privately owned municipality-supported libraries By a majority vote of those present and voting at an annual or special meeting warned for the purpose, a municipality may issue municipal bonds under this chapter for the cost of capital improvements to any public library, as defined in 22 V.S.A. § 101, including any privately owned municipality-supported library situated within the municipality for use of residents of the municipality; and the improvements shall be considered “improvements” for the purposes of this chapter. Added 1987, No. 56, eff. May 15, 1987; amended 2025, No. 127 (Adj. Sess.), § 7, eff. July 1, 2026.

24 V.S.A. § 1753 Use of bond proceeds

1753. Use of bond proceeds (a) If after bonds have been issued and no expenditure of the proceeds has been made for the purpose or purposes for which the debt was incurred, or if a balance remains after the completion of the project or projects for which the debt was authorized, a municipal corporation by a majority of the voters present and voting on the question at a meeting or meetings of such municipal corporation held for that purpose, may authorize the expenditure of the proceeds or portion thereof for any purpose or purposes for which bonds may be issued; provided, however, that if the proceeds obtained from the issuance of bonds or any balance thereof, is not appropriated as aforesaid, then the same shall be used to pay the principal of the loan as it matures. (b) The warning calling the meeting provided in this section shall state the amount of the proceeds and the purpose for which they are to be used, and shall fix the place where and the date on which the meeting shall be held and the hours of opening and closing of the polls. Notice of the meeting shall conform to section 1756 of this title, and the conduct of the meeting and the qualifications of voters shall conform to section 1758 of this title. Added 1969, No. 104, eff. April 19, 1969.

24 V.S.A. § 1754 Validation

1754. Validation All outstanding bonds and notes of a municipal corporation issued prior to June 1, 1935, are hereby declared legal and binding obligations in accordance with the terms thereof.

24 V.S.A. § 1755 Submission to voters

1755. Submission to voters (a)(1) On a petition signed by at least ten percent of the voters of a municipal corporation the proposition of incurring a bonded debt to pay for public improvements shall be submitted to the qualified voters thereof at any annual or special meeting to be held for that purpose, or, when the legislative branch of a municipal corporation at a regular or special meeting called for such purpose shall determine by resolution passed by a vote of a majority of those members present and voting, that the public interest or necessity demands improvements, and that the cost of the same will be too great to be paid out of the ordinary annual income and revenue, by vote of a majority of those members present and voting, it may order the submission of the proposition of incurring a bonded debt to pay for public improvements to the qualified voters of such municipal corporation at a meeting to be held for that purpose. (2) The warning calling the meeting shall state the object and purpose for which the indebtedness is proposed to be incurred, the estimated cost of the improvements, and the amount of bonds proposed to be issued, and shall fix the place where and the date on which the meeting shall be held and the hours of opening and closing the polls. (b) A municipal corporation may not submit to the voters more than twice in any one-year period the proposition of incurring a bonded debt to pay for the same or a similar public improvement, except that a proposition voted on for the first time at an annual meeting that is reconsidered may be voted on in the subsequent annual meeting. Amended 1969, No. 58, § 2, eff. April 14, 1969; 1971, No. 89, § 1; 1973, No. 235 (Adj. Sess.), § 3; 2017, No. 50, § 53.

24 V.S.A. § 1756 Notice of meeting; authorization

1756. Notice of meeting; authorization (a)(1) The clerk of the municipal corporation shall cause notice of such meeting to be published in a newspaper of known circulation in such municipality once a week for three consecutive weeks on the same day of the week, the last publication to be not less than five nor more than ten days before such meeting. (2) Notice of such meeting shall also be posted in five public places within such municipality for two weeks immediately preceding such meeting. (b) When a majority of all the voters present and voting on the question at such meeting vote to authorize the issuance of bonds for said public improvements, the legislative branch shall be authorized to make such public improvements and issue bonds as hereinafter provided. Blank and defective ballots shall not be counted in determining the question. Amended 1969, No. 193 (Adj. Sess.), § 1.

24 V.S.A. § 1757 Validation

1757. Validation (a) Whenever the qualified voters of a municipal corporation, as defined in this subchapter, have voted by the requisite majority to authorize issuance of bonds to pay for any public improvement, and such proceedings are defective because of failure to comply with any of the statutory requirements therefor, although the required length of notice and notice of the purpose of such meeting has been had, such omissions may be cured by a resolution of such legislative branch by a vote of two-thirds of all its members at a regular or a special meeting called for that purpose, stating that the defect was the result of oversight, inadvertence, or mistake of law or fact. (b) When such omission has been so supplied by such resolution, all bonds or other financing within the terms of the action of the qualified voters shall be as valid as if the statutory requirement had been complied with.

24 V.S.A. § 1757a Validation of consolidated water or sewer districts and bonds voted for construction

1757a. Validation of consolidated water or sewer districts and bonds voted for construction (a) No action shall be brought directly or indirectly attacking, questioning, or in any manner contesting the legality of the formation, or the existence as a body corporate and politic, of any consolidated water or sewer district created pursuant to chapter 91 or 105, respectively, of this title, after six months from the date of the recording in the office of the Secretary of State of the certificate required by section 3342 or 3673 of this title, as the case may be; nor shall any action be brought directly or indirectly attacking, questioning, or in any manner contesting the legality or validity of bonds, issued or unissued, voted by any such district or by any other municipal corporate entity, after six months from the date upon which voters in any such district or other municipal corporate entity met pursuant to warning and voted affirmatively to issue bonds to defray costs of sewer or water improvements or upon vote of a question of recission thereof whichever occurs later. (b) This section shall be liberally construed to effect the legislative purpose to validate and make certain the legal existence of all consolidated water or sewer districts in this State and the validity of bonds issued or authorized by consolidated or other municipal corporate entities for water or sewer purposes, and to bar every right to question in any manner the existence of any such district or other municipal corporate entity or the validity of a bond voted by it for water or sewer purposes, and to bar every remedy therefor notwithstanding any defects or irregularities, jurisdictional or otherwise, after expiration of the six-month period. Added 1975, No. 57, § 1, eff. April 18, 1975.

24 V.S.A. § 1758 Conduct of meetings [Effective until contingency met; see also § 1758 effective January 15, 2029, set out below]

1758. Conduct of meetings [Effective until contingency met; see also § 1758 effective January 15, 2029, set out below] (a) Meetings of voters in municipal corporations under this subchapter shall be conducted in the same manner as the annual city and town meetings are conducted. The qualifications of voters at such meetings shall be the same as the qualifications of voters at annual city and town meetings. The vote on the question of issuing bonds for such improvements shall be by Australian ballot. The form of the ballot to be used shall be substantially as follows: I. Shall the bonds of the .......... of .......... in an amount not to exceed .......... be issued for the purpose of .................... ? If in favor of the bond issue, make a cross (x) in this square □. If opposed to the bond issue, make a cross (x) in this square □. In the discretion of the legislative branch, the form of the ballot may also state the maximum rate of interest to be paid on the bonds, in which case the form of the ballot to be used shall be substantially as follows: I. Shall bonds of the .......... of .......... in an amount not to exceed .......... bearing interest not to exceed .......... percent, be issued for the purpose of .................... ? If in favor of the bond issue, make a cross (x) in this square □. If opposed to the bond issue, make a cross (x) in this square □. (b) If a school board submits to its voters the proposition of incurring a bonded debt to pay for an improvement, the form of the ballot shall be as set forth in subsection (a) of this section, however: (1) If the entire costs of the improvement are not eligible for State construction aid pursuant to 16 V.S.A. chapter 123 because the costs exceed the maximum allowed by formula established by the State Board of Education, the ballot text set forth in subsection (a) shall be preceded by the following introductory sentences: The .......... school board proposes to incur bonded indebtedness for the purpose of .......... at the estimated total project cost of $ .......... . It is estimated that ........ percent of the project will not be eligible for State school construction aid because its (unit costs and/or allowable space) cause it to exceed the maximum cost for state participation under the State Board of Education’s formula for school construction. Therefore, the ...... percent of the project that is estimated to be ineligible under the formula shall be built at 100% school district cost without State participation. The cost of the portion of construction which is ineligible under the formula is $ .......... . (2) The ballot may contain language conditioning commencement of the improvement by the school board on receipt of final approval by the State Board of Education for State construction aid under 16 V.S.A. § 3448(a)(5). (3) The warning and ballot shall contain the following set forth in bold-faced type: State funds may not be available at the time this project is otherwise eligible to receive State school construction aid. The district is responsible for all costs incurred in connection with any borrowing done in anticipation of State school construction aid. (c) A public informational hearing adhering to the requirements of 17 V.S.A. § 2680(g) shall be held to discuss the proposition of a school district incurring a bonded debt to pay for an improvement. At such hearing, the school board shall distribute to the participants a written estimate of the percentage of the costs of the improvement that will not be eligible for State school construction aid because its unit costs or allowable space, or both, cause it to exceed the maximum cost for State participation under the State Board of Education’s formula for school construction. Amended 1969, No. 58, § 3, eff. April 14, 1969; 1981, No. 239 (Adj. Sess.), § 29; 1995, No. 62, §§ 59, 61, eff. April 26, 1995; 1995, No. 185 (Adj. Sess.), §§ 7a, 79, eff. May 22, 1996; 1999, No. 29, § 54, eff. May 19, 1999; 2005, No. 147 (Adj. Sess.), § 44; 2017, No. 74, § 88.

24 V.S.A. § 1759 Denominations; payments; interest

1759. Denominations; payments; interest (a)(1) Any bond issued under this subchapter shall draw interest at a rate not to exceed the rate approved by the voters of the municipal corporation in accordance with section 1758 of this title, or if no rate is specified in the vote under that section, at a rate approved by the legislative body of the municipal corporation, the interest to be payable as determined by the legislative body of the municipal corporation. The bonds or bond shall be payable serially, the first payment to be deferred not later than from one to five years after the issuance of the bonds and subsequent principal payments or debt service payments, which include both principal and interest payments, to be continued annually in substantially level or declining amounts, as determined by the legislative body of the municipality, so that the entire debt will be paid in not more than 20 years from the date of issue. (2) In the case of bonds issued for the purchase or development of a municipal forest, the first payment may be deferred not more than 30 years from the date of issuance of the bond. After any deferral period, the bonds or bond shall be payable annually in substantially level or declining annual debt service as the legislative body of the municipal corporation may determine, so that the entire debt will be paid in not more than 60 years from the date of issue. (3) In the case of bonds issued for any capital project that has a useful life of at least 30 years, the entire debt will be paid in not more than 30 years from the date of issue. (b) General obligation bonds authorized under this subchapter for the purpose of financing the improvement, construction, acquisition, repair, renovation, and replacement of a municipal plant as defined in 30 V.S.A. § 2901 shall be paid serially, the first payment to be deferred not later than from one to five years after the issuance of the bonds, and subsequent principal payments or debt service payments, which include both principal and interest payments, to be continued annually in substantially level or declining amounts, as determined by the legislative body of the municipal corporation, so that the entire debt will be paid not more than 40 years from the date of issue, notwithstanding other permissible payment schedules authorized by this section. Amended 1963, No. 136; 1969, No. 58, § 1, eff. April 14, 1969; 1969, No. 177 (Adj. Sess.), § 1, eff. March 5, 1970; 1979, No. 138 (Adj. Sess.); 1985, No. 123 (Adj. Sess.), eff. April 18, 1986; 2007, No. 75, § 41; 2013, No. 50, § E.131.2; 2025, No. 57, § 8, eff. July 1, 2025.

24 V.S.A. § 1760 Bonds validated—Over five percent

1760. Bonds validated—Over five percent Notwithstanding the interest rate limitation set forth in section 1759 of this title prior to April 14, 1969, if any municipal corporation has prior to that date authorized bonds to bear interest at a rate of interest in excess of five percent, but not more than six percent, the authorization so voted is hereby ratified and confirmed and declared to be legal and valid, and such municipal corporation may issue such bonds at a rate of interest not exceeding the rate stated in the vote authorizing the issuance of the bonds. Added 1969, No. 58, § 4, eff. April 14, 1969.

24 V.S.A. § 1761 Higher rates

1761. Higher rates If any municipal corporation has authorized bonds to bear interest at a rate of interest not in excess of six percent prior to March 5, 1970, and any of such bonds remain unsold on that date, the legislative branch of the municipal corporation may approve an increase in the rate of interest of such authorized but unsold bonds and the increase in such rate of interest is hereby declared to be legal and valid, and such municipal corporation may issue such bonds which shall bear interest at the rate of interest approved by the legislative branch which increased rate of interest is declared to be legal and valid. Added 1969, No. 177 (Adj. Sess.), § 2, eff. March 5, 1970.

24 V.S.A. § 1762 Limits

1762. Limits (a) A municipal corporation shall not incur an indebtedness for public improvements which, with its previously contracted indebtedness, shall, in the aggregate, exceed ten times the amount of the last grand list of such municipal corporation. Bonds or obligations given or created in excess of the limit authorized by this subchapter and contrary to its provisions shall be void. (b) However, the provisions of this subchapter as to the debt limit shall not apply to bonds issued under section 1752 or 1754 of this title, relating to the ordinary expenses of a municipality. Amended 2011, No. 155 (Adj. Sess.), § 10.

24 V.S.A. § 1763 Specifications

1763. Specifications The legislative branch shall determine the rate of interest or the manner of determining the same, the date, the denominations, the time and place of payment, and the form of bonds and notes to be used by the municipal corporation. The legislative branch may provide that the bonds be sold on bids fixing the rate of interest or the manner of determining the same from time to time for the period during which said bonds or notes shall remain outstanding, and if so sold, the accepted bid shall fix the rate of interest the bonds are to bear or the manner by which such rate of interest shall be determined periodically. When bonds are to be registered they shall be registered as provided by this chapter. Amended 1985, No. 125 (Adj. Sess.), § 3, eff. April 18, 1986.

24 V.S.A. § 1764 Taxes to meet interest and payments

1764. Taxes to meet interest and payments At the time of assessing the general tax levy, in addition to all other taxes, the legislative branch shall provide annually for the assessment and collection each year, until such bonds are paid, of a tax sufficient to pay the interest on such bonds and such part of the principal as shall become due prior to the time the taxes are due in the next following year.

24 V.S.A. § 1765 Advertisement

1765. Advertisement (a)(1) Except as provided in section 4650 of this title, bonds issued under this subchapter shall be sold at par, premium, or discount, and accrued interest, after being advertised at least once not less than five nor more than 30 days before the date of sale in a newspaper published in the county or within 50 miles of the municipal corporation issuing the bonds and, in case of issues exceeding $1,000,000.00, also in some financial paper published in Boston, Massachusetts, or New York, New York. (2) The advertisement shall state the amounts, date, and denominations of the bonds, dates of maturity, rate of interest, or that the bidding shall be based thereon, and the time and place where the bonds are to be sold. (b)(1) The legislative branch may reject any and all bids. (2) In case all bids are so rejected, they may advertise and call for new bids in the manner hereinbefore provided, or in case, after the bonds have been advertised for sale as provided in this subchapter, no bids have been received, or all bids have been rejected and the whole or any part of the bonds remain unsold, those unsold may, within 60 days from the date of the public sale, be sold by the legislative branch at private sale at not less than par and accrued interest. (c) If no bids are received at the public sale, the legislative branch may at any time advertise and call for new bids or may sell the unsold bonds at private sale in the manner hereinbefore provided and may award the bonds bearing a rate of interest not in excess of the maximum rate provided in section 1759 of this title, notwithstanding any limit imposed by the voters at the meeting at which the bonds were authorized. Amended 1969, No. 58, § 5, eff. April 14, 1969; 1989, No. 111, § 2, eff. June 22, 1989.

24 V.S.A. § 1766 Bonds; by whom signed

1766. Bonds; by whom signed Such bonds shall be signed by the mayor and treasurer of an incorporated city, by the treasurer and selectboard or trustees, as the case may be, of a town or village, by the treasurer and trustees or prudential committee, as the case may be, of an incorporated school district, lighting or fire district, and by the treasurer and board of school directors of a town school district. The coupons to such bonds shall be signed by or bear the facsimile signature of the treasurer. When such municipal corporation has a corporate seal, such seal shall be affixed to such bonds, otherwise such bonds need not be sealed.

24 V.S.A. § 1767 Computation of amount

1767. Computation of amount (a)(1) In determining the amount of municipal indebtedness permitted by this subchapter, obligations created for current expenses, for a water supply or for electric lights, and temporary loans created in anticipation of the collection of taxes and necessary for meeting current expenses shall not be taken into account. (2) Sinking funds and other monies set aside for the sole purpose of paying outstanding bonds shall be deducted. (b) The provisions of this section and of section 1762 of this title shall not apply when the charter of a municipal corporation or special act otherwise limits its indebtedness.

24 V.S.A. § 1768 Form of bond and coupon

1768. Form of bond and coupon The form of bond issued under this subchapter shall be substantially as follows: FORM OF BOND The (insert name of municipal corporation) in the county of _____ _____ and of Vermont promises to pay to the bearer hereof on the ________ day of ________ the sum of ______ dollars, with interest thereon at the rate of ________ percent per annum, payable semi-annually on the presentation and surrender of the interest coupons hereto attached. Both principal and interest of this bond are payable at the ________ bank in the (city, town, or village) of ________ State of ________ . This bond is issued by the (insert name of municipal corporation) under and by virtue of chapter 53 of Title 24 of Vermont Statutes Annotated, and acts in amendment of and in addition thereto and the ordinance (or resolution) of (insert name of municipal corporation) duly passed on the ________ day of ______ 20__ . This bond is one of the series of bonds of like tenor, except as to ________ numbered from ________ to ________ and issued for the purpose of defraying the cost of ________ as described in the ordinance or resolution in (insert name of municipal corporation). It is hereby certified and recited that all acts, conditions, and things required to be done precedent to and in the issuing of these bonds have been done, have happened, and have been performed in regular and due form, as required by such law and ordinance (or resolution), and for the assessment, collection, and payment hereon of a tax to pay the same, when due, the full faith and credit of (insert name of municipal corporation) are hereby irrevocably pledged. In testimony whereof the (name of municipal corporation) has caused this bond to be signed by its ________ and ________ and the seal of (insert name of municipal corporation) affixed hereto this ______ day of _____ . _______________ _______________ Treasurer. COUPON No. ____ On the ____ day of ____ the (insert name of municipal corporation) in the State of Vermont promises to pay to bearer as provided in such bond, the sum of ____ dollars at the ____ (bank) ____ , being ____ months’ interest due that day on bond No. ____ dated ____ . __________ Treasurer.

24 V.S.A. § 1771 Refunding bonds; authorization

1771. Refunding bonds; authorization A municipal corporation that has outstanding and unpaid orders, notes, bonds, or coupons, lawfully issued, may issue other negotiable notes or bonds to pay or retire the same. Such bonds shall be signed, sold, made payable, and mature in the same manner as an original issue of bonds of a municipal corporation is signed, sold, made payable, and mature, as provided in this subchapter.

24 V.S.A. § 1772 Refunding bonds; procedure and limitations

1772. Refunding bonds; procedure and limitations (a) Such municipal corporation by its legislative branch, by resolution or ordinance, shall determine the necessity for issuing refunding bonds, the amount of legal outstanding indebtedness to be refunded, what amount of new bonds shall be issued, at what time and place they shall be payable, the rate of interest thereon, or that the rate of interest shown by the accepted bid shall determine the rate of interest thereon, and when payable, the form of bond, which shall be substantially in the form provided in this subchapter, and whether the bonds shall be registered or have interest coupons attached. Such new bonds shall not be used or sold except to provide means for paying or retiring such outstanding indebtedness in accordance with the provisions of subsection (b) of this section. (b) A municipal corporation by its legislative branch, by resolution or ordinance, may issue refunding bonds for the purpose of paying any of its bonds or notes at maturity or upon acceleration or redemption. The refunding bonds may be issued at such time prior to the maturity or redemption of the refunded bonds as the municipality deems to be in the public interest. The refunding bonds may be issued in sufficient amounts to pay or provide the principal of the bonds being refunded, together with any redemption premium thereon, any interest accrued or to accrue to the date of payment of the bonds, the expenses of issue of the refunding bonds, the expenses of redeeming the bonds being refunded, and such reserves for debt service or other capital or current expenses from the proceeds of the refunding bonds, as may be required by the resolutions under which bonds are issued. Amended 1983, No. 24, § 2, eff. April 6, 1983; 2017, No. 74, § 89.

24 V.S.A. § 1773 Temporary loans

1773. Temporary loans (a) If a municipal corporation votes to issue bonds in accordance with law, the officers authorized to issue the same, upon resolution of the legislative branch of the municipal corporation, may make a temporary loan, in the name of such municipal corporation, for a period of not more than one year in anticipation of the money to be derived from the sale of such bonds and may issue notes therefore. Temporary notes issued under this subsection for a shorter period than one year may be renewed or refunded by the issue of other notes maturing not more than one year from the date of the original loan except as stated in subsection (b) of this section. The maximum maturity date of the authorized bond issue need not be reduced because of a temporary loan hereunder except as stated in subsection (b) of this section. (b) A temporary note issued under subsection (a) of this section may be renewed or refunded to mature more than one year from the date of the original temporary loan. In such a case, the authorized amount of the bond issue shall be reduced each year or portion thereof after the first year during which the temporary loan remains outstanding by a factor at least equal to the amount which will reduce the authorized amount of bonds to zero through equal annual payments over the maximum maturity allowed by law for such bonds, or such lesser maturity as may be determined by the legislative branch of the municipality. The amount of the temporary loan outstanding at any time shall not exceed the current authorized amount of the bond issue. The legislative branch of the municipal corporation shall, in each year in excess of any one year period, include in the next annual apportionment or assessment of taxes an amount equal to the amount of the reduction to be used either for the purpose of the original authorized bond issue or to satisfy the temporary note. With the approval of the voters, the period after which the authorized amount of the bond issue shall begin to be reduced may be extended to no more than three years. Temporary notes issued under this subsection shall mature no later than one year from their original date and any renewal or refunding thereof shall mature no later than ten years from the date of the original loan. The maximum maturity date of the authorized bond issue shall be reduced by a period equal to the period of temporary borrowing in excess of one year from the date of the original temporary note and for so long as the notes remain unsatisfied or outstanding. (c) Pending the receipt of revenue in the form of grants-in-aid from any source, a municipal corporation through its legislative branch, by resolution or ordinance, may issue revenue anticipation notes in anticipation of the grants-in-aid to be received. The notes may be issued on such terms and conditions and at such times as the legislative branch shall determine. The proceeds of the notes may be used only for the purpose for which the grants-in-aid are anticipated, and no note may mature more than one year from its date; provided, however, that a note issued under this subsection may be refunded or renewed from time to time by the issuance of a note or notes dated before the date upon which the total grant-in-aid is received. Amended 1967, No. 242 (Adj. Sess.), § 1, eff. Feb. 13, 1968; 1969, No. 285 (Adj. Sess.), § 12, eff. April 9, 1970; 1975, No. 165 (Adj. Sess.); 1979, No. 94 (Adj. Sess.), § 1, eff. March 7, 1980; 1991, No. 51.

24 V.S.A. § 1774 Record by treasurer

1774. Record by treasurer The treasurer of each governmental unit as defined in section 4551(5) of this title shall keep a record of every obligation assumed by that unit. Amended 1977, No. 155 (Adj. Sess.), § 2, eff. March 29, 1978; 1999, No. 71 (Adj. Sess.), § 2.

24 V.S.A. § 1775 Cancellation and record of old bonds

1775. Cancellation and record of old bonds When old notes, orders, or bonds are taken up, as provided in this subchapter, the treasurer of the municipal corporation shall keep a record of the same, and such old notes, orders, or bonds shall be cancelled.

24 V.S.A. § 1776 Record

1776. Record All ordinances or resolutions required by this subchapter to be enacted by the legislative branch of a municipal corporation shall be duly recorded in the office of the clerk of such municipal corporation.

24 V.S.A. § 1777 Regulations

1777. Regulations When a municipal corporation has established or provided a sinking fund for the retirement of a bond issue or other debt, the fund so established or provided shall be kept intact and separate from other monies at the disposal of such corporation, shall be accounted for as a pledged asset for the purpose of retiring such obligations, and shall not be appropriated or used for the current expenses of such corporation.

24 V.S.A. § 1778 Registered obligations; authority to issue

1778. Registered obligations; authority to issue A municipal corporation may issue registered bonds. If an original issue of bonds by such municipal corporation is registered, they shall be registered as hereinafter provided.

24 V.S.A. § 1779 Registration on request

1779. Registration on request A municipal corporation, at the written request, duly acknowledged, of the owner or holder of one or more bonds, promissory notes, or certificates of indebtedness issued by it and payable to bearer or to a person or corporation named, or bearer, may change such bonds, notes, or certificates into registered obligations, payable only to the person or corporation whose name is properly indorsed thereon, as hereinafter provided.

24 V.S.A. § 1780 Certificate of registration indorsed; when

1780. Certificate of registration indorsed; when When it shall be determined by a municipal corporation to issue registered bonds, the legislative branch of the municipal corporation shall direct the treasurer of such municipal corporation to indorse upon the back of each of such bonds over his or her official signature a certificate of registration in substantially the form hereinafter provided, inserting in the appropriate places the date of such registration, the name and address of the registered holder, and his or her own signature as transfer agent. Thereafter such bond shall be transferable only upon the books of such municipality upon presentation to the treasurer thereof with a written assignment duly acknowledged or proved.

24 V.S.A. § 1781 Change of coupon bonds to registered bonds

1781. Change of coupon bonds to registered bonds In case a municipal corporation shall have issued coupon bonds and the owner or holder thereof has requested that such bonds be changed to registered bonds as herein provided, then upon written request of such change, duly acknowledged, the treasurer of such a municipal corporation, if directed by the city council of the city, selectboard of the town, school directors of the town school district, or other corresponding officers of the municipal corporation of which he or she is such treasurer, as the case may be, shall cut off and destroy the coupons on the bonds presented for registration and indorse upon the back of each of such bonds over his or her official signature a certificate of registration in substantially the form prescribed by section 1782 of this title, inserting in the appropriate places the date of such registration, the name and address of the registered holder, and his or her own signature as transfer agent. Thereafter such bond shall be transferable only upon the books of such municipality upon presentation to the treasurer thereof with a written assignment duly acknowledged or proved.

24 V.S.A. § 1782 Registered bonds; form of certificate

1782. Registered bonds; form of certificate In all cases where bonds are registered the following shall be the form of It is hereby certified that upon the written request of the holder of the within bond, the coupons attached thereto, being ___________ in number, of ___________ each have been this day cut off and destroyed and that the within bond is hereby converted into a registered bond with the interest thereon payable _______________________________________ annually, and that such interest, as well as the principal, is payable to the registered holder thereof, his or her legal representatives, successors, or assigns at the time and place expressed on the face of such bond. The within bond when registered is transferable only upon the books of the treasurer of _______________________________________ upon presentation to the treasurer with a written assignment duly acknowledged or proved. Date _________________________________________ 20 ___________ . Treasurer of _________________________________________ _________________________________________ Date of registration. _________________________________________ Name and address of registered holder. Signature of treasurer who acts as transfer agent. Amended 2017, No. 74, § 90.

24 V.S.A. § 1783 Registered bonds; indorsement conclusive evidence of authority

1783. Registered bonds; indorsement conclusive evidence of authority The indorsement of such certificate of registration upon any bond, note, or certificate by such treasurer shall be conclusive evidence that such treasurer was directed by the proper officers of the municipal corporation of which he or she was treasurer to convert such bond into a registered obligation. Amended 2017, No. 74, § 91.

24 V.S.A. § 1784 Registered bonds; treasurer to keep record

1784. Registered bonds; treasurer to keep record The treasurer of every such municipal corporation shall keep a register showing the number, date, amount, rate of interest, time when payable, and the name of the registered holder of the bonds, notes, and certificates originally registered or changed to registered obligations. Amended 2017, No. 74, § 92.

24 V.S.A. § 1785 Registered bonds; conversion not to affect liability

1785. Registered bonds; conversion not to affect liability Such conversion shall in no respect or degree weaken or impair the obligation of such municipal corporation to pay such bond, note, or certificate so converted. Amended 2017, No. 74, § 93.

24 V.S.A. § 1786 Borrowing to pay current expenses in anticipation of taxes

1786. Borrowing to pay current expenses in anticipation of taxes (a) A municipal corporation, by its legislative branch, may borrow money by the issuance of its notes or orders for the purpose of paying current expenses of the municipal corporation. Such notes or orders, however, must mature within one year from date. (b) A municipal corporation may also borrow money in anticipation of taxes in an amount not to exceed ninety percent of the amount of taxes assessed for such year and may issue its notes or orders therefor to mature not more than one year from the date of the note or order. (c) The assistant judges may borrow money in the name of the county in anticipation of taxes.

24 V.S.A. § 1786a Borrowing for public improvements and capital assets

1786a. Borrowing for public improvements and capital assets (a) The voters of a municipality may authorize specific public improvements and the acquisition of capital assets and finance the same, temporarily or permanently, through debt instruments other than bonds for a term not to exceed the reasonably anticipated useful life of the improvements or assets as provided in this section. (b) If the improvements or assets are to be financed for a term of five years or less, they shall be approved by the voters at an annual or special meeting duly warned for the purpose in accordance with the provisions of 17 V.S.A. chapter 55. However, the requirement of this subsection shall not apply to purchases made by selectboards under the provisions of 19 V.S.A. § 304(a)(3). (c) If the improvements or assets are to be financed for a term of more than five years, the procedural provisions of sections 1755, 1756, and 1757 of this title shall apply. A vote on the question shall be held at a duly warned annual or special meeting and shall be by Australian ballot. The ballot shall be in substantially the following form: “Shall the voters authorize (describe public improvement or acquisition) in an amount not to exceed ($ ........ ) to be financed over a period not to exceed (number of years).” (d) Public improvements or assets approved under subsection (c) of this section may be financed for a period of five years or less. (e) Debt instruments authorized under this section may be refunded in the manner provided in sections 1771 and 1772 of this title. Added 1995, No. 2, § 1, eff. Feb. 23, 1995; amended 2001, No. 64, § 22, eff. June 16, 2001.

24 V.S.A. § 1787 Application of chapter; charters and special acts to control

1787. Application of chapter; charters and special acts to control This chapter shall not affect rights allowed a municipal corporation by its charter provisions, nor any rights granted by special act of the Legislature. This chapter, except where inconsistent with such charter or special act, shall apply to the method of exercising all such rights. Amended 1989, No. 111, § 3, eff. June 22, 1989.

24 V.S.A. § 1788 Existing powers continued; emergencies

1788. Existing powers continued; emergencies The existing power of a municipality to authorize public improvements by a majority vote in a meeting duly called and held and to finance the same temporarily by the issue of orders or notes, and to issue bonds therefor, is not repealed nor affected by the provisions of this subchapter. Such municipality may refund all or any portion of such temporary orders, notes, or bonds in the method provided by sections 1771 and 1772 of this title. Nevertheless, no public improvement which has been voted upon in the method provided by sections 1755 and 1756 of this title shall be voted upon in any such meeting, except in cases of emergency, in which the vote stating the emergency shall be conclusive evidence of its existence. The existing power of a municipality to refund obligations representing indebtedness accumulated in the ordinary administration of the affairs of such municipality, whether incurred for public improvements or for current expenses, and with or without vote of such municipality, is not repealed nor affected by the provisions of this subchapter, except that the method of such refunding shall be as provided in sections 1771 and 1772 of this title.

24 V.S.A. § 1789 Alternative financing of assets

1789. Alternative financing of assets (a) A municipality, including a fire district, either singly or as a participant in an interlocal contract entered into under sections 4901 and 4902 of this title, may acquire personal property, fixtures, technology, and intellectual property by means of leases, lease-purchase agreements, installment sales agreements, and similar agreements wherein payment and performance on the part of the municipality is conditioned expressly upon the annual approval by the municipality of an appropriation sufficient to pay when next due rents, charges, and other payments accruing under such leases and agreements. (b) The legislative body of the municipality shall enter into leases and agreements identified in subsection (a) of this section on behalf of the municipality and under such terms as it deems to be in the best interest of the municipality. (c) The undertaking of a municipality to make payments under a lease or agreement identified in subsection (a) of this section shall not be a general or special obligation of the municipality, but shall be treated as a current operating expense. Payments made or to be made under such lease or agreement shall not be taken into account in calculating the debt limit of a municipality for any purpose. Added 2007, No. 79, § 5, eff. June 9, 2007.

24 V.S.A. § 1790 Emergency borrowing; all-hazard event or state of emergency

1790. Emergency borrowing; all-hazard event or state of emergency The legislative body of a municipality may borrow money, in the name of the municipal corporation, by issuance of its notes or orders for the purpose of paying expenses of the municipal corporation or for public improvements associated with an all-hazards event or a declared state of emergency pursuant to 20 V.S.A. chapter 1. The notes or orders shall be for a period of not more than five years or a term not to exceed the reasonably anticipated useful life of the improvements or assets financed by the notes or orders. Added 2025, No. 57, § 7, eff. July 1, 2025.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/24/053Fetched: 10/21/2026