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Searching 2017-2018 Session

The Vermont Statutes Online

Title 24 : Municipal and County Government

Chapter 119 : MUNICIPAL BOND BANK

Subchapter 005 : SALE AND ISSUANCE OF BONDS AND NOTES

(Cite as: 24 V.S.A. § 4648)
  • § 4648. Terms of agreement with bond or noteholder

    In any resolution of the bank authorizing, or relating to the issuance of any bonds or notes, the bank, in order to secure the payment of the bonds or notes and in addition to its other powers, may covenant and contract with the holders of the bonds or notes:

    (1) To pledge to any payment or purpose all or any part of its revenues to which its right then exists or may thereafter come into existence, and the moneys derived therefrom, and the proceeds of any bonds or notes;

    (2) To covenant against pledging all or any part of its revenues, or against permitting or suffering any lien on those revenues or its property;

    (3) To covenant as to the use and disposition of any payments of principal or interest received by the bank on municipal bonds, revenue bonds or other investments held by the bank;

    (4) To covenant as to establishment of reserves or sinking funds, the making of provision for them, and the regulation and disposition thereof;

    (5) To covenant with respect to or against limitations on any right to sell or otherwise dispose of any property of any kind;

    (6) To covenant as to any bonds and notes to be issued and their limitations and their terms and conditions and as to the custody, application and disposition of their proceeds;

    (7) To covenant as to the issuance of additional bonds or notes or as to limitations on the issuance of additional bonds or notes and on the incurring of other debts;

    (8) To covenant as to the payment of the principal of or interest on the bonds or notes, as to the sources and methods of payment, as to the rank or priority of any bonds or notes with respect to any lien or security or as to the acceleration of the maturity of any bonds or notes;

    (9) To provide for the replacement of lost, stolen, destroyed or mutilated bonds or notes;

    (10) To covenant against extending the time for the payment of bonds or notes or interest thereon;

    (11) To covenant as to the redemption of bonds or notes and privileges of exchange thereof for other bonds or notes of the bank;

    (12) To covenant as to any charges to be established and charged, the amount to be raised each year or other period of time by charges or other revenues and as to the use and disposition to be made thereof;

    (13) To covenant to create or authorize the creation of special funds or moneys to be held in pledge or otherwise for operating expenses, payment or redemption of bonds or notes, reserves or other purposes and as to the use and disposition of the moneys held in those funds;

    (14) To establish the procedure, if any, by which the terms of any contract or covenant with or for the benefit of the holders of bonds or notes may be amended or abrogated, the amount of bonds or notes the holders of which must consent thereto, and the manner in which the consent may be given;

    (15) To covenant as to the custody of any of its properties or investments, the safe-keeping thereof, the insurance to be carried thereon, and the use and disposition of insurance moneys;

    (16) To covenant as to the time or manner of enforcement or restraint from enforcement of any rights of the bank arising by reason of or with respect to nonpayment of any principal or interest of any municipal bonds or revenue bonds;

    (17) To provide for the rights and liabilities, powers and duties arising upon the breach of any covenant, condition or obligation and to prescribe the events of default and the terms and conditions upon which any or all of the bonds, notes or other obligations of the bank shall become or may be declared due and payable before maturity and the terms and conditions upon which the declaration and its consequences may be waived;

    (18) To vest in a trustee or trustees within or without the state such property, rights, powers and duties in trust as the bank may determine, which may include any of the rights, powers and duties of any trustee appointed by the holders of any bonds or notes and to limit or abrogate the right of the holders of any bonds of the bank to appoint a trustee under this chapter or limiting the rights, powers and duties of the trustee;

    (19) To pay the costs or expenses incident to the enforcement of the bonds or notes or of the resolution or of any covenant or agreement of the bank with the holders of its bonds or notes;

    (20) To agree with any corporate trustee which may be any trust company or bank having the powers of a trust company within or without the state, as to the pledging or assigning of any revenues or funds to which the bank has any rights or interest, and may further provide for such other rights and remedies exercisable by the trustee as may be proper for the protection of the holders of any bonds or notes of the bank and not otherwise in violation of law, and which agreement may provide for the restriction of the rights of any individual holder of bonds or notes of the bank;

    (21) To appoint and to provide for the duties and obligations of a paying agent or paying agents, or such other fiduciaries as the resolution may provide within or without the state;

    (22) To limit the rights of the holders of any bonds or notes to enforce any pledge or covenant securing bonds or notes; and

    (23) To make covenants other than and in addition to the covenants herein expressly authorized, of like or different character, and to make covenants to do or refrain from doing such things as may be necessary, or convenient and desirable, in order to better secure bonds or notes or which, in the absolute discretion of the bank, will tend to make bonds or notes more marketable, notwithstanding that the covenants or things may not be enumerated herein. (Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 55, §§ 15, 16, eff. May 15, 1987.)