The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
002
:
INDEBTEDNESS FOR PUBLIC UTILITY PURPOSES
(Cite as: 24 V.S.A. § 1827)
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§ 1827. Enforcement of bond obligations
The municipal corporation shall have power by resolution of its legislative body,
adopted in connection with the issuance of the bonds and subject to approval under
30 V.S.A. § 108 to confer upon any holder or holders of a specified amount or percentage of bonds,
including a trustee or trustees for such holders, the right in the event of an “event
of default” as defined in any contract with the holder or holders of such bonds or
the trustee or trustees therefor:
(1) By suit, action, or proceedings in any court of competent jurisdiction to obtain the
appointment of a receiver of the public utility system of the municipal corporation
or any part or parts thereof. If such receiver be appointed he or she may enter and
take possession of such public utility system of the municipal corporation or any
part or parts thereof and operate and maintain the same, and collect and receive all
revenues thereafter arising therefrom in the same manner as the municipal corporation
itself might do and shall deposit such monies in a separate account or accounts and
apply the same in accordance with the obligations of the municipal corporation as
the court shall direct. All actions of receivers authorized under this section shall
be subject to the same regulatory requirements applicable to the municipal utility.
Provided, however, that notwithstanding the appointment of a receiver the municipal
corporation shall retain the right subject to regulatory requirements to fix the rates,
fees, and charges to be charged by the public utility system, the revenues from which
are pledged to pay bonds and the interest thereon, and to receive from the receiver
from time to time that portion of any revenues collected which shall be allocable
to the municipal corporation on account of costs for public utility system maintenance,
operation, repair, and regulation or other costs payable by the municipal corporation.
(2) By suit, action, or proceedings in any court of competent jurisdiction to require
the legislative body of the municipal corporation and the treasurer of the municipal
corporation to account as if it, he, or she were the trustee of an express trust.
Any such resolution shall constitute a contract between the municipal corporation
and the holders of bonds of such issue. (Added 1989, No. 111, § 10, eff. June 22, 1989.)