Form and Nature of Bonds and Notes

V.S.A. tit. 10, ch. 25, subch. 4

in effect

10 V.S.A. § 631 Bonds and notes

631. Bonds and notes (a)(1) The Agency may issue its negotiable notes and bonds in such principal amount as the Agency determines to be necessary to provide sufficient funds for achieving any of its corporate purposes, including the payment of interest on notes and bonds of the Agency, establishment of reserves to secure the notes and bonds including the reserve funds created under section 632 of this title, and all other expenditures of the Agency incident to and necessary or convenient to carry out its corporate purposes and powers. (2) The Agency shall have the power, from time to time, to issue notes to renew notes and bonds to pay notes, including the interest thereon and, whenever it deems refunding expedient, to refund any bonds by the issuance of new bonds, whether the bonds to be refunded have or have not matured, and to issue bonds partly to refund bonds then outstanding and partly for any of its corporate purposes. (3) Except as may otherwise be expressly provided by resolution of the Agency, every issue of its notes and bonds shall be general obligations of the Agency payable out of any revenues or monies of the Agency, subject only to any agreements with the holders of particular notes or bonds pledging any particular revenues. (b) The notes and bonds shall be authorized by resolution or resolutions of the Agency, shall bear such date or dates and shall mature at such time or times as the resolution or resolutions may provide, except that no bond shall mature more than 42 years from the date of its issue. The bonds may be issued as serial bonds or as term bonds or as a combination thereof. The notes and bonds shall bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in such medium of payment, at such place or places within or without the State, and be subject to such terms of redemption as the resolution or resolutions may provide; provided, however, that at the time of the authorization of the issuance of such bonds or notes the Agency determines in such resolution: (1) that mortgage loans made by or on behalf of the Agency, directly or indirectly, with the proceeds of such bonds or notes in accordance with section 621 or 622 of this title can be issued bearing a rate or rates of interest that will be less than the prevailing rate of interest on comparable mortgage loans available in the State without the assistance of the Agency at the time the bonds or notes are sold; and (2) that the Agency will derive receipts, revenues, or other income from mortgages purchased or loans made through mortgage lenders with the proceeds of such bonds or notes sufficient to provide, together with all other available receipts, revenues, and income of the Agency, for the payment of such bonds or notes and the payment of all costs and expenses incurred by the Agency with respect to the program or purpose for which such bonds or notes are issued. The notes and bonds of the Agency may be sold by the Agency, at public or private sale, at such price or prices as the Agency shall determine. (c) Any resolution or resolutions authorizing any notes or bonds or any issue thereof may contain provisions, which shall be a part of the contract or contracts with the holders thereof, as to: (1) pledging all or any part of the revenues of the Agency to secure the payment of the notes or bonds or of any issue thereof, subject to such agreements with noteholders or bondholders as may then exist; (2) pledging all or any part of the assets of the Agency, including mortgages and obligations securing the same, to secure the payment of the notes or bonds or of any issue of notes or bonds, subject to such agreements with noteholders or bondholders as may then exist; (3) the use and disposition of the gross income from mortgages owned by the Agency and payments upon other obligations held by the Agency; (4) the setting aside of reserves or sinking funds and the regulation and disposition thereof; (5) limitations on the purpose to which the proceeds of sale of notes or bonds may be applied and pledging the proceeds to secure the payment of the notes or bonds or of any issue thereof; (6) limitations on the issuance of additional notes or bonds, the terms upon which additional notes or bonds may be issued and secured, and the refunding of outstanding or other notes or bonds; (7) the procedure, if any, by which the terms of any contract with noteholders or bondholders may be amended or abrogated, the amount of notes or bonds the holders of which must consent thereto, and the manner in which consent may be given; (8) limitations on the amount of monies to be expended by the Agency for operating expenses of the Agency; (9) vesting in a trustee or trustees, within or without the State, such property, rights, powers, and duties in trust as the Agency may determine, which may include any or all of the rights, powers, and duties of the trustee appointed by the bondholders pursuant to this chapter and limiting or abrogating the right of the bondholders to appoint a trustee under this chapter or limiting the rights, powers, and duties of the trustee; (10) defining the acts or omissions to act that shall constitute a default in the obligations and duties of the Agency to the holders of the notes or bonds and providing for the rights and remedies of the holders of the notes or bonds in the event of such default, including as a matter of right the appointment of a receiver; provided, however, that the rights and remedies shall not be inconsistent with the general laws of the State and other provisions of this chapter; and (11) any other matters, of like or different character, that in any way affect the security or protection of the holders of the notes or bonds. (d) Any pledge made by the Agency shall be valid and binding from the time when the pledge is made; the revenues, monies, or property so pledged and thereafter received by the Agency shall immediately be subject to the lien of such pledge without any physical delivery thereof or further act; and such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the Agency, irrespective of whether such parties have notice thereof. (e) Bonds, notes, and other obligations authorized under this chapter may, in the discretion of the Agency, be issued with such terms as will cause the interest thereon to be subject to federal income taxation. To the extent required for their sale, the Agency may register such obligations, including the obligations of a trust established pursuant to section 627 of this title, under applicable federal and State securities laws. No person executing any bonds, notes, and other obligations issued by the Agency or others under authority of this chapter shall be subject to any personal liability or accountability by reason of the issuance thereof. The Agency shall indemnify any person who shall have served as a commissioner, officer, or employee of the Agency against financial loss or litigation expense arising out of or in connection with any claim or suit involving allegations that pecuniary harm has been sustained as a result of any transaction authorized by this chapter, unless such person is found by a final judicial determination not to have acted in good faith and for a purpose that he or she reasonably believed to be lawful and in the best interests of the Agency. (f) The Agency, subject to such agreements with noteholders or bondholders as may then exist, shall have power out of any funds available therefor to purchase notes or bonds of the Agency at a price as shall be determined in the economic best interests of the Agency. (g) In the discretion of the Agency, the notes or bonds may be secured by a trust indenture by and between the Agency and a corporate trustee, which may be any trust company or bank having the power of a trust company within or without the State. The trust indenture may contain such provisions for protecting and enforcing the rights and remedies of the noteholders or bondholders as may be reasonable and proper and not in violation of law, including covenants setting forth the duties of the Agency in relation to the exercise of its corporate powers and the custody, safeguarding, and application of all monies. The Agency may provide by such trust indenture for the payment of the proceeds of the notes or bonds and the revenues to the trustee under such trust indenture or other depository, and for the method of disbursement thereof, with such safeguards and restrictions as it may determine. All expenses incurred in carrying out the trust indenture may be treated as a part of the operating expenses of the Agency. If the notes or bonds shall be secured by a trust indenture, the noteholders and bondholders shall have no authority to appoint a separate trustee to represent them. (h) Any law to the contrary notwithstanding, a bond or note issued under this chapter is fully negotiable for all purposes of 9A V.S.A. § 1-101 et seq., and each holder or owner of a bond or note, or of any coupon appurtenant thereto, by accepting the bond or note or coupon shall be conclusively deemed to have agreed that the bond, note, or coupon is fully negotiable for those purposes. (i) Any provision of this chapter or of any other law or any recitals in any bonds or notes issued under this chapter to the contrary notwithstanding, all bonds, notes, and interest coupons appertaining thereto issued by the Agency shall have and are hereby declared to have all the qualities and incidents, including negotiability, of investment securities under 9A V.S.A. § 1-101 et seq., but no provision of those sections respecting the filing of a financing statement to perfect a security interest shall be applicable to any security interest created in connection with the issuance of the bonds, notes, or coupons. (j) In case any of the commissioners, executive director, or officers of the Agency whose signatures appear on any notes or bonds or coupons shall cease to be commissioners, executive director, or officers before the delivery of such notes or bonds, the signatures shall, nevertheless, be valid and sufficient for all purposes, the same as if such commissioners, executive director, or officers had remained in office until such delivery. (k) Interest rate exchange agreements. The Agency may enter into one or more agreements for the exchange of interest rates, cash flows, or payments to reduce net borrowing costs, achieve desirable net effective interest rates in connection with its issuance and sale of debt obligations and to provide for an efficient means of debt management. (l)(1) The bonds, notes, and other obligations authorized to be issued pursuant to subdivision 621(22) of this title shall be secured by a pledge of the property transfer tax revenues to be transferred to the Agency pursuant to 32 V.S.A. § 9610(d) and shall mature on or before June 30, 2039. (2) The Agency may issue the bonds, notes, and other obligations in one or more series at one time or from time to time, provided that the aggregate annual debt service on the bonds, notes, and other obligations shall not exceed $2,500,000.00 at any time. (3) The Agency shall transfer the proceeds of the bonds, notes, and other obligations, less issuance fees and costs and required reserves, to the Vermont Housing and Conservation Trust Fund established pursuant to section 312 of this title for use by the Vermont Housing and Conservation Board as provided in section 314 of this title. (4) The Agency, the Vermont Housing and Conservation Board, and the State Treasurer may execute one or more agreements governing the terms and conditions under which the property transfer tax revenues that secure the bonds, notes, and obligations shall be transferred to the Agency, and any other issues they determine appropriate. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974; amended 1975, No. 176 (Adj. Sess.), § 2, eff. March 26, 1976; 1977, No. 47, §§ 3, 4, eff. April 20, 1977; 1977, No. 199 (Adj. Sess.), § 2; 1979, No. 36, § 2, eff. April 18, 1979; 1979, No. 97 (Adj. Sess.), § 1, eff. March 20, 1980; 1981, No. 23, § 3, eff. April 14, 1981; 1983, No. 52, § 4, eff. April 23, 1983; 1985, No. 94, §§ 1, 2; 1987, No. 250 (Adj. Sess.), § 3, eff. June 13, 1988; 1989, No. 145 (Adj. Sess.), § 1, eff. April 20, 1990; 2005, No. 75, § 19; 2005, No. 189 (Adj. Sess.), § 9; 2007, No. 86 (Adj. Sess.), § 1, eff. March 3, 2008; 2009, No. 1 (Sp. Sess.), § H.12, eff. June 2, 2009; 2017, No. 85, § I.6; 2017, No. 85, § I.11.

10 V.S.A. § 632a Reserve and pledged equity funds

632a. Reserve and pledged equity funds (a) The Agency may create and establish one or more special funds, herein referred to as “debt service reserve funds” or “pledged equity funds.” (b) The Agency shall pay into each debt service reserve fund: (1) Any monies appropriated and made available by the State for the purpose of such fund. (2) Any proceeds of the sale of notes, bonds, or other debt instruments to the extent provided in the resolution or resolutions of the Agency authorizing their issuance. (3) Any other monies or financial instruments such as surety bonds, letters of credit, or similar obligations that may be made available to the Agency for the purpose of such fund from any other source or sources. All monies or financial instruments held in any debt service reserve fund created and established under this section except as hereinafter provided shall be used, as required, solely for the payment of the principal of the bonds, notes, or other debt instruments secured in whole or in part by such fund or of the payments with respect to the bonds, notes, or other debt instruments specified in any resolution of the Agency as a sinking fund payment, the purchase or redemption of the bonds, the payment of interest on the bonds, notes, or other debt instruments, or the payment of any redemption premium required to be paid when the bonds, notes, or other debt instruments 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 Agency’s behalf; provided, however, that the monies or financial instruments in any such debt reserve 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 Agency for such fund as provided in this section except for the purpose of paying, when due, with respect to bonds secured in whole or in part by such fund, the principal, interest, redemption premiums, and sinking fund payments and of reimbursing, when due, the issuer of any credit enhancement for any such payments made by it, for the payment of which other monies of the Agency 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 Agency to other funds or accounts of the Agency to the extent it does not reduce the amount of such debt service reserve fund below the debt service reserve requirement for such fund. (c) The Agency shall pay into each pledged equity fund: (1) Any monies appropriated and made available by the State for the purpose of such fund. (2) Any proceeds of the sale of notes, bonds, or other debt instruments to the extent provided in the resolution or resolutions of the Agency authorizing the issuance thereof. (3) Any other monies or financial instruments such as surety bonds, letters of credit, or similar obligations that may be made available to the Agency for the purpose of such fund from any other source or sources. All monies or financial instruments held in any pledged equity fund created and established under this section except as provided in this section shall be used, as required, solely to provide pledged equity or over-collateralization of any trust estate of the Agency to the issuer of a liquidity or credit facility, bond insurance, or other credit enhancement obtained by the Agency; provided, however, that the monies or financial instruments in any pledged equity fund shall not be drawn upon or withdrawn from such fund at any time in such amounts as would reduce the amount of such funds to less than the pledged equity requirement established by resolution of the Agency for such fund as provided in this section except for the purposes set forth in and in accordance with the governing resolution. Any income or interest earned by or increment to any pledged equity fund due to the investment thereof may be transferred by the Agency to other funds or accounts of the Agency to the extent it does not reduce the amount of such pledged equity fund below the requirement for such fund. Anything in this subdivision to the contrary notwithstanding, upon the defeasance of the bonds, notes, or other debt instruments with respect to which the pledged equity requirement was established, the Agency may transfer amounts in such fund to another fund or account of the Agency proportionately to the amount of such defeasance, provided that the Agency shall repay to the State any amount appropriated by the State pursuant to subsection (f) of this section. (d) The debt service reserve and pledged equity requirements for any fund established under this section shall be established by resolution of the Agency prior to the issuance of any bonds, notes, or other debt instruments secured in whole or in part by a debt service reserve fund or prior to entering into any credit enhancement agreement and shall be the amount determined by the Agency to be reasonably required in light of the facts and circumstances of the particular debt issue or credit enhancement, provided that the maximum amount of the State’s commitment with respect to any pledged equity fund shall be determined by the Agency at or prior to entering into any credit enhancement agreement related to such pledged equity fund. The Agency shall not at any time issue bonds, notes, or other debt instruments secured in whole or in part by a debt service reserve fund or enter into any credit enhancement agreement that requires establishment of a pledged equity fund created and established under this section unless: (1) the Agency at the time of such issuance or execution shall deposit in such fund from the proceeds of such bonds, notes, or other debt instruments or from other sources an amount that, together with the amount then in such fund, will not be less than the requirement established for such fund at that time; (2) the Agency has made a determination at the time of the authorization of the issuance of such bonds, notes, or other debt instruments or at the time of entering into such credit enhancement agreement that the Agency will derive revenues or other income from the mortgage loans that secure such bonds, notes, or other debt instruments or that relate to any credit enhancement agreement sufficient to provide, together with all other available revenues and income of the Agency other than any amounts appropriated by the State pursuant to this section for the payment or purchase of such bonds, notes, and other debt instruments and reimbursement to the issuer of any credit enhancement the payment of any expected deposits into any pledged equity fund established with respect to such credit enhancement, and the payment of all costs and expenses incurred by the Agency with respect to the program or purpose for which such bonds, notes, or other debt instruments are issued; and (3) the State Treasurer or designee has provided written approval to the Agency that the Agency may issue such bonds, notes, or other debt instruments and enter into any related credit enhancement agreement. (e) In computing the amount of the debt service reserve or pledged equity 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 that term is defined by resolution of the Agency, if purchased at other than par. (f) In order to ensure the maintenance of the debt service reserve fund requirement in each debt service reserve fund established by the Agency under this section, there may be appropriated annually and paid to the Agency for deposit in each fund a sum as shall be certified by the Chair of the Agency to the Governor, the President of the Senate, and the Speaker of the House as is necessary to establish or restore each such debt service reserve fund to an amount equal to the requirement for each 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 fund to the amount required by this section, and the Governor shall, on or before March 1, submit a request for appropriations in the amount so certified, and such amount may be appropriated and, if appropriated, shall be paid to the Agency during the then current State fiscal year. In order to ensure the funding of the pledged equity fund requirement in each pledged equity fund established by the Agency under this section at the time and in the amount determined at the time of entering into any credit enhancement agreement related to a pledged equity fund, there may be appropriated and paid to the Agency for deposit in each fund a sum as shall be certified by the Chair of the Agency to the Governor, the President of the Senate, and the Speaker of the House as is necessary to establish each pledged equity fund to an amount equal to the amount determined by the Agency at the time of entering into any credit enhancement agreement related to a pledged equity fund; provided that the amount requested, together with any amounts previously appropriated pursuant to this subsection for a particular pledged equity fund, shall not exceed the maximum amount of the State’s commitment as determined by the Agency pursuant to subsection (d) of this section. The Chair shall, on or about the February 1 next following the designated date for fully funding a pledged equity fund, 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 bring each fund to the amount required by this section or to otherwise satisfy the State’s commitment with respect to each fund, and the Governor shall, on or before March 1, submit a request for appropriations in the amount so certified, and such amount may be appropriated and, such amount, if appropriated, shall be paid to the Agency during the then current State fiscal year. The combined principal amount of bonds, notes, and other debt instruments outstanding at any time and secured in whole or in part by a debt service reserve fund established under this section and the aggregate commitment of the State to fund pledged equity funds pursuant to this subsection shall not exceed $155,000,000.00 at any time, provided that the foregoing shall not impair the obligation of any contract or contracts entered into by the Agency in contravention of the Constitution of the United States. Notwithstanding anything in this section to the contrary, the State’s obligation with respect to funding any pledged equity fund shall be limited to its maximum commitment, as determined by the Agency pursuant to subsection (d) of this section, and the State shall have no other obligation to replenish or maintain any pledged equity fund. Added 2009, No. 1 (Sp. Sess.), § H.14, eff. June 2, 2009; amended 2011, No. 40, § 55, eff. May 20, 2011.

10 V.S.A. § 633 Refunding obligations — Issuance

633. Refunding obligations — Issuance The Agency may provide for the issuance of refunding obligations for the purpose of refunding any obligations then outstanding that have been issued under the provisions of this chapter, including the payment of any redemption premium thereon and any interest accrued or to accrue to the date of redemption of such obligations and for any corporate purpose of the Agency. The issuance of such obligations, the maturities and other details thereof, the rights of the holders thereof, and the rights, duties, and obligations of the Agency in respect of the same shall be governed by the provisions of this chapter that relate to the issuance of obligations, insofar as those provisions may be appropriate. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974.

10 V.S.A. § 634 Refunding obligations — Sale

634. Refunding obligations — Sale Refunding obligations issued as provided in section 633 of this title may be sold or exchanged for outstanding obligations issued under this chapter and, if sold, the proceeds thereof may be applied, in addition to any other authorized purposes, to the purchase, redemption, or payment of such outstanding obligations. Pending the application of the proceeds of any refunding obligations, with any other available funds, to the payment of the principal, accrued interest, and any redemption premium on the obligations being refunded, and, if so provided or permitted in the resolution authorizing the issuance of such refunding obligations or in the trust agreement securing them to the payment of any interest on such refunding obligations and any expenses in connection with such refunding, such proceeds may be invested in direct obligations of, or obligations the principal of and the interest on that are unconditionally guaranteed by the United States of America that shall mature or that shall be subject to redemption by the holders thereof, at the option of such holders, not later than the respective dates when the proceeds, together with the interest accruing thereon, will be required for the purposes intended. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974.

10 V.S.A. § 635 Remedies of bondholders and noteholders

635. Remedies of bondholders and noteholders (a) In the event that the Agency defaults in the payment of principal or of interest on any bonds or notes issued under this chapter after they become due, whether at maturity or upon call for redemption, and the default continues for a period of 30 days, or in the event that the Agency fails or refuses to comply with the provisions of this chapter, or defaults in any agreement made with the holders of an issue of bonds or notes of the Agency, the holders of 25 percent in aggregate principal amount of the bonds or notes of such issue then outstanding, by instrument or instruments filed in the Office of the Secretary of State and proved or acknowledged in the same manner as a deed to be recorded, may appoint a trustee to represent the holders of such bonds or notes for the purposes herein provided. (b) Such trustee may, and upon written request of the holders of 25 percent in principal amount of such bonds or notes then outstanding shall, in his or her or its own name: (1) enforce all rights of the bondholders or noteholders, including the right to require the Agency to collect interest and amortization payments on the mortgages or other obligations held by it adequate to carry out any agreement as to, or pledge of, the interest and amortization payments, and to require the Agency to carry out any other agreements with the holders of such bonds or notes and to perform its duties under this chapter; (2) enforce all rights of the bondholders or noteholders, including the right to collect and enforce the payment of principal of and interest due or becoming due on loans to mortgage lenders and collect and enforce any collateral securing the loans or sell the collateral, so as to carry out any contract as to, or pledge of revenues, and to require the Agency to carry out and perform the terms of any contract with the holders of such bonds or notes or its duties under this chapter; (3) bring suit upon all or any part of such bonds or notes; (4) by action or suit, require the Agency to account as if it were the trustee of an express trust for the holders of such bonds or notes; (5) by action or suit, enjoin any acts or things that may be unlawful or in violation of the rights of the holders of such bonds or notes; (6) declare all such bonds or notes due and payable, and, if all defaults shall be made good, then with the consent of the holders of 25 percent of the principal amount of such bonds or notes then outstanding to annul the declaration and its consequences. (c) The trustee shall in addition to the foregoing have and possess all the powers necessary or appropriate for the exercise of any functions specifically set forth herein or incident to the general representation of bondholders or noteholders in the enforcement and protection of their rights. (d) Before declaring the principal of bonds or notes due and payable, the trustee shall first give 30 days’ notice in writing to the Governor, to the Agency and to the Attorney General of the State. (e) The Superior Courts or courts with equity jurisdiction shall have jurisdiction of any suit, action, or proceeding by the trustee on behalf of bondholders or noteholders. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974.

10 V.S.A. § 636 Pledge of the State

636. Pledge of the State The State does hereby pledge to and agree with the holders of the notes and bonds issued under this chapter that the State will not limit or restrict the rights hereby vested in the Agency to perform its obligations and to fulfill the terms of any agreement made with the holders of its bonds or notes or in any way impair the rights and remedies of the holders until the notes and bonds, together with interest thereon, and interest on any unpaid installments of interest, are fully met, paid and discharged. The Agency is authorized to execute this pledge and agreement of the State in any agreement with the holders of the notes or bonds. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974.

10 V.S.A. § 637 Sovereign immunity, credit of State not pledged

637. Sovereign immunity, credit of State not pledged The Agency shall have the benefit of sovereign immunity to the same extent as the State of Vermont. Commissioners, officers, employees, and the executive director of the Agency shall be deemed employees of the State for purposes of 12 V.S.A. chapter 189 (tort claims against State) and 3 V.S.A. chapter 29 (claims against State employees). Notwithstanding the foregoing, obligations issued under the provisions of this chapter shall not be deemed to constitute a debt or liability or obligation of the State or of any political subdivision thereof or a pledge of the faith and credit of the State or of any political subdivision but shall be payable solely from the revenues or assets of the Agency. Each obligation issued under this chapter shall contain on the face thereof a statement to the effect that the Agency shall not be obligated to pay the same nor the interest thereon except from the revenues or assets pledged therefor and that neither the faith and credit nor the taxing power of the State or of any political subdivision thereof is pledged to the payment of the principal of or the interest on such obligations. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974; amended 2003, No. 122 (Adj. Sess.), § 240a; 2005, No. 75, § 20.

10 V.S.A. § 638 Notes and bonds as legal investments

638. Notes and bonds as legal investments Notwithstanding any other law, the State and all public officers, governmental units, and agencies thereof, all banks, trust companies, savings banks and institutions, building and loan associations, savings and loan associations, investment companies, and other persons carrying on a banking business, all insurance companies, insurance associations, and other persons carrying on an insurance business, all credit unions, and all executors, administrators, guardians, trustees, and other fiduciaries may legally invest any sinking funds, monies, or other funds belonging to them or within their control in any bonds or notes issued under this chapter, and the bonds or notes are authorized security for any and all public deposits. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974.

10 V.S.A. § 639 Annual reports; audit

639. Annual reports; audit (a) On or before the last day of January in each year, the Agency shall submit a report of its activities for the preceding fiscal year to the Governor and to the General Assembly, specifically the committees in the House and Senate with jurisdiction over housing. Each report shall set forth a complete operating and financial statement covering its operations during the year, including the Agency’s present and projected economic health, amount of indebtedness, a statement of the amounts received from funds generated by interest from real estate escrow and trust accounts established pursuant to 26 V.S.A. § 2214(c), a list and description of the programs to which IORTA funds were provided and the amounts distributed to each county. The Agency shall cause an audit of its books and accounts to be made at least once in each year by certified public accountants; the cost shall be considered an expense of the Agency 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. (b) The Auditor of Accounts of the State and his or her duly authorized representatives may at any time examine the accounts and books of the Agency, including its receipts, disbursements, contracts, sinking funds, investments, and any other matters relating to its financial statements. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974; amended 1989, No. 145 (Adj. Sess.), § 3, eff. April 20, 1990; 1991, No. 86, § 3, eff. Jan. 1, 1992; 2007, No. 86 (Adj. Sess.), § 2, eff. March 3, 2008; 2013, No. 142 (Adj. Sess.), § 17.

10 V.S.A. § 640 Authorization to accept appropriated monies

640. Authorization to accept appropriated monies The Agency is authorized to accept and expend such monies as may be appropriated or approved from time to time by the General Assembly for effectuating its corporate purposes including the payment of the initial expenses of administration and operation and the establishment of reserves or contingency funds to be available for the payment of the principal of and the interest on any bonds, notes, or other obligations of the Agency. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974.

10 V.S.A. § 641 Tax exemption

641. Tax exemption (a) All property of the Agency is public property devoted to an essential public and governmental function and purpose and is exempt from all taxes, franchise fees, and special assessments of whatever nature of the State or any subdivision. All bonds or notes issued under this chapter are issued by a body corporate and public of this State and for an essential public and governmental purpose and those bonds and notes, and the interest thereon and the income therefrom, and all activities of the Agency and fees, charges, funds, revenues, incomes, and other monies of the Agency whether or not pledged or available to pay or secure the payment of those bonds or notes, or interest thereon, are exempt from all taxation, franchise fees, or special assessments of whatever kind except for transfer, inheritance, and estate taxes. (b) The Agency is not required to make or file any reports, statements, or informational returns required of any other bodies corporate except as provided in this chapter. (c) Notwithstanding subsection (a) of this section, a tax lien on real property that has attached pursuant to 32 V.S.A. § 5061 shall not be extinguished as a result of the acquisition by the Agency of property subject to such lien. No real property owned by the Agency on April 1 of any year shall be assessed for taxes by any municipality and no lien for taxes pursuant to 32 V.S.A. § 5061 shall attach to such property whether or not the Agency subsequently transfers the property to a taxable person prior to April 1 of the following year. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974; amended 1983, No. 215 (Adj. Sess.), § 2, eff. May 10, 1984.

10 V.S.A. § 642 Liberal construction

642. Liberal construction Neither this chapter nor anything herein contained is or shall be construed as a restriction or limitation upon any powers that the Agency might otherwise have under any laws of this State, and this chapter is cumulative to any such powers. This chapter does and shall be construed to provide a complete, additional, and alternative method for the doing of the things authorized thereby and shall be regarded as supplemental and additional to powers conferred by other laws. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974.

10 V.S.A. § 643 Inconsistent provisions in other laws superseded

643. Inconsistent provisions in other laws superseded Insofar as the provisions of this chapter are inconsistent with the provisions of any other law, general, special, or local, the provisions of this chapter shall be controlling. Added 1973, No. 260 (Adj. Sess.), § 3, eff. April 11, 1974.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/10/025Fetched: 10/21/2026