§ 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.)