Transportation Infrastructure Bonds

V.S.A. tit. 32, ch. 13, subch. 4

in effect

32 V.S.A. § 972 Transportation Infrastructure Bonds

972. Transportation Infrastructure Bonds (a) The Treasurer may issue bonds pursuant to this subchapter from time to time in amounts authorized by the General Assembly in its annual transportation bill. Bonds issued under this section shall be referred to as “Transportation Infrastructure Bonds.” (b) As used in this subchapter, the term “debt service obligations” is as defined in section 951a of this title. (c) Debt service obligations of the bonds shall be fulfilled or satisfied in accordance with the terms of any trust agreement pertaining to the bonds from the Transportation Infrastructure Bonds Debt Service Fund. (d) Funds raised from bonds issued under this section may be used to pay for or fund: (1) the rehabilitation, reconstruction, or replacement of State bridges and culverts; (2) the rehabilitation, reconstruction, or replacement of municipal bridges and culverts; (3) the rehabilitation, reconstruction, or replacement of State roads, railroads, airports, and necessary buildings that after such work, have an estimated minimum remaining useful life of 30 years or more; and (4) a permanent reserve required by a trust agreement entered into to secure the bonds. (e) Pursuant to section 953 of this title, interest and the investment return on the bonds shall be exempt from taxation in this State. (f) Bonds issued under this section shall be legal investments for all persons without limit as to the amount held, regardless of whether they are acting for their own account or in a fiduciary capacity. The bonds shall likewise be legal investments for all public officials authorized to invest in public funds. Added 2009, No. 50, § 28; amended 2011, No. 63, § F.103, eff. June 2, 2011.

32 V.S.A. § 973 Issuance of bonds

973. Issuance of bonds (a) Transportation Infrastructure Bonds may be issued at one time or in a series from time to time in any form permitted by law, in such manner and on such terms and conditions as the State Treasurer may determine to be in the best interests of the State, except that the State Treasurer shall determine the following with the approval of the Governor: (1) date of issuance; (2) place of payment; (3) rate of interest (which may be fixed or variable) or the manner of determining such rate of interest; (4) original stated value; (5) investment returns or manner of determining the investment returns; (6) maturity value, time of maturity, and provisions with respect to redemption prior to maturity; (7) whether to issue the bonds at par, premium, or discount; (8) sinking fund and reserve requirements; (9) amount and manner of issuance; and (10) other particulars as to the form of such bonds within the limitations of this subchapter. (b) The State Treasurer shall determine the annual payment schedule for the bonds, including debt service and sinking fund payments, if any, as he or she may deem to be in the best interests of the State. However, any bond issued under this subchapter shall mature not later than 30 years after the date of issuance. Installments on the bonds need not be payable in substantially equal or diminishing amounts. The last bond payment shall be made not later than 30 years after the date of issuance. (c) The State Treasurer may determine at the time of issuance to apply all or a portion of any net premium to the costs of issuance, other related financing costs, or the payment of the principal or interest to come due. If net premium is applied to costs of issuance, the amount of the premium shall not be included in the net proceeds of the issue. Net premium not applied to costs of issuance shall be included in the net proceeds of the issue and may be used for any of the authorized purposes of the bond proceeds. (d) The debt service obligations of Transportation Infrastructure Bonds which require a cash payment shall be payable in lawful money of the United States or of the country in which the bonds are sold. (e) Transportation Infrastructure Bonds shall be registered pursuant to section 981 of this title. Added 2009, No. 50, § 28; amended 2011, No. 63, § F.104, eff. June 2, 2011.

32 V.S.A. § 974 Security documents

974. Security documents (a) The State Treasurer is authorized to secure bonds authorized under this subchapter by a trust agreement that pledges or assigns monies in the Transportation Infrastructure Bond Fund, by additional security, insurance, or other forms of credit enhancement that may be secured with the bonds on a parity or subordinate basis, or by both. (b) Any trust agreement or credit enhancement agreement entered into pursuant to this section shall be valid and binding from the time of the agreement without any physical delivery or further act and without any filing or recording under the Uniform Commercial Code or otherwise, and the lien of such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise, irrespective of whether such parties have notice thereof. (c) Any trust agreement or credit enhancement agreement may establish provisions defining defaults and establishing remedies and other matters relating to the rights and security of the holders of the bonds or other secured parties as determined by the State Treasurer, including provisions relating to the establishment of reserves; the issuance of additional or refunding bonds, whether or not secured on a parity basis; the application of receipts, monies, or funds pledged pursuant to the agreement; and other matters deemed necessary or desirable by the State Treasurer for the security of the bonds, and may also regulate the custody, investment, and application of monies. (d) For payment of debt service obligations of Transportation Infrastructure Bonds, the full faith and credit of the State is hereby pledged. However, if pledging of full faith and credit of the State is not necessary to market a Transportation Infrastructure Bond in the best interests of the State, the Treasurer shall enter into an agreement that establishes that the full faith and credit of the State is not pledged for payment of debt service obligations of the bond. In determining whether to pledge the full faith and credit of the State, the State Treasurer shall consider the anticipated effect of such a pledge on the credit standing of the State, the marketability of the Transportation Infrastructure Bond, and other factors he or she deems appropriate. Added 2009, No. 50, § 28; amended 2011, No. 63, § F.105, eff. June 2, 2011.

32 V.S.A. § 975 Proceeds

975. Proceeds Proceeds from the sale of bonds may be expended for the authorized purposes of the bonds, including the expenses of preparing, issuing, and marketing the bonds; any notes issued under section 976 of this title; and amounts for any reserves. However, no purchasers of the bonds shall be bound to see to the proper application of the proceeds thereof. Added 2009, No. 50, § 28; amended 2011, No. 63, § F.106, eff. June 2, 2011.

32 V.S.A. § 975a Authority of Treasurer

975a. Authority of Treasurer The Treasurer may fulfill debt service obligations of bonds issued under this subchapter as they fall due without further order or authority. All such fulfillments shall be accounted for as a payment or provision made from the Transportation Infrastructure Bonds Debt Service Fund. Added 2011, No. 63, § F.107, eff. June 2, 2011.

32 V.S.A. § 975b Debt service appropriations

975b. Debt service appropriations The General Assembly shall appropriate in the annual appropriations bill the amount necessary from the appropriate funds to pay the debt service obligations of Transportation Infrastructure Bonds that are due in the fiscal year covered by the appropriations bill. Added 2011, No. 63, § F.108, eff. June 2, 2011.

32 V.S.A. § 976 Anticipation of proceeds

976. Anticipation of proceeds (a) Pending the issue of Transportation Infrastructure Bonds, the State Treasurer, with the approval of the Governor, may use any available cash in the Transportation Infrastructure Bond Fund for the purposes for which the bonds were authorized, and shall restore the borrowed funds from the proceeds of the bonds. (b) The State Treasurer, with the approval of the Governor, may borrow upon notes of the State sums of money in anticipation of the proceeds of the bonds. Notes issued under this subsection shall be issued on such terms and at such times as the Treasurer and Governor may determine, and shall mature not more than three years from the date of issuance, provided that notes issued for a shorter period may be refunded from time to time by the issue of other such notes maturing within the required period of three years. (c) The authority granted under this section is in addition to and not in limitation of any other authority. Added 2009, No. 50, § 28.

32 V.S.A. § 977 Refunding bonds

977. Refunding bonds The State Treasurer, with the approval of the Governor, is hereby authorized to issue Transportation Infrastructure Bonds in order to refund all or any portion of outstanding transportation bonds at any time after the issuance of the bonds to be refunded pursuant to subsections 961(b), (c), and (d) of this title. Added 2009, No. 50, § 28.

32 V.S.A. § 978 Pledge

978. Pledge The General Assembly hereby pledges and covenants with holders of the bonds issued under this subchapter that the State will fulfill the terms of any agreement made with the holders of Transportation Infrastructure Bonds and will not in any way impair the rights or remedies of the holders of the bonds until the bonds, interest, and all costs associated with the bonds are fully paid. Added 2009, No. 50, § 28.

32 V.S.A. § 979 Authorities

979. Authorities In addition to the provisions of this subchapter, the following provisions of this title shall apply to Transportation Infrastructure Bonds: (1) sections 951a, 953, 956, 958, and 960; (2) subsection 954(c), except that transfers shall be made only among projects to be funded with Transportation Infrastructure Bonds; and (3) section 957, except that consolidation may be only among Transportation Infrastructure Bonds, and the bonds shall be the lawful obligation of the Transportation Infrastructure Bond Fund and not of the remaining revenues of the State unless the Treasurer has agreed to pledge the full faith and credit of the State pursuant to subsection 974(d) of this title. Added 2009, No. 50, § 28; amended 2011, No. 63, § F.109, eff. June 2, 2011.

32 V.S.A. § 980 Authority to issue Transportation Infrastructure Bonds

980. Authority to issue Transportation Infrastructure Bonds The State Treasurer is authorized to issue Transportation Infrastructure Bonds pursuant to section 972 of this title for the purpose of funding future appropriations only as approved by the General Assembly. Added 2009, No. 50, § 28.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/32/013Fetched: 10/21/2026