The Vermont Statutes Online
Title 29: Public Property and Supplies
Chapter 061: MUNICIPAL EQUIPMENT LOAN FUND
§ 1601. Municipal equipment loan fund
(a) There is hereby created a municipal equipment loan fund for the purpose of providing loans on favorable terms to municipalities for the purchase of construction, fire, emergency, or heavy equipment or vehicles.
(b) The Municipal Equipment Loan Fund shall be administered by the State Treasurer and the State Traffic Committee, pursuant to policies and procedures approved by the Traffic Committee established by 19 V.S.A. § 1(24). The Committee shall establish criteria for distribution of available loan funds among municipalities considering at least financial need, geographic distribution, and ability to repay. The Fund shall be a revolving fund and all principal and interest earned on loans and the Fund balance remaining in the Fund at the end of any fiscal year shall not revert but be carried over in the Fund for use in the succeeding fiscal year. (Added 1985, No. 187 (Adj. Sess.), § 3; amended 1987, No. 89, § 314c; 2019, No. 131 (Adj. Sess.), § 289.)
§ 1602. Application; loans; conditions
(a) Upon application of a municipality or two or more municipalities applying jointly, the State Treasurer may loan money from the Fund to that municipality or municipalities for the purchase of equipment. Purchases of equipment eligible for loans from the Fund shall have a useful life of at least five years and a purchase price of at least $20,000.00 but shall not be eligible for loans in excess of $110,000.00 from this Fund.
(b) The Treasurer is authorized to establish terms and conditions, including repayment schedules of up to five years for loans from the Fund to ensure repayment of loans to the Fund. Before a municipality may receive a loan from the Fund, it shall give to the Treasurer security for the repayment of the funds. The security shall be in such form and amount as the Treasurer may determine and may include a lien on the equipment financed by the loan.
(c) The rates of interest shall be as established by this section to assist municipalities in purchasing equipment upon terms more favorable than in the commercial market. Such rates shall be no more than two percent per annum for a loan to a single municipality, and loans shall bear no interest charge if made to two or more municipalities purchasing equipment jointly.
(d) In any fiscal year, new loans from the Municipal Equipment Fund shall not exceed an aggregate of $1,500,000.00. (Added 1985, No. 187 (Adj. Sess.), § 3; amended 1987, No. 89, § 314c; 1991, No. 172 (Adj. Sess.), §§ 1, 2; 1999, No. 156 (Adj. Sess.), § 46, eff. May 29, 2000; 2005, No. 175 (Adj. Sess.), § 24.)
§ 1603. Joint purchasing
The Secretary of Transportation and the Commissioner of Buildings and General Services, or their designees, shall develop and promote a program of joint purchasing with the municipalities by which purchases of equipment by the State are combined, where possible, with purchases of equipment by any municipality electing to participate in order to obtain volume purchasing discounts and other purchasing benefits. (Added 1985, No. 187 (Adj. Sess.), § 3; amended 1987, No. 89, § 314c; 1995, No. 148 (Adj. Sess.), § 4(a), eff. May 6, 1996.)