Skip to navigation Skip to content Skip to subnav
Searching 2019-2020 Session

The Vermont Statutes Online

 

Title 24 : Municipal and County Government

Chapter 065 : PUBLIC LANDS AND FUNDS

Subchapter 002 : PUBLIC FUNDS

(Cite as: 24 V.S.A. § 2432)
  • § 2432. Powers and duties; investments

    (a)(1) The trustees shall apply estate income to the purpose for which it is held, and deeds or contracts made by them shall be in the name of the town.

    (2) The trustees may:

    (A) lease, sell, or convey real estate so held and invest the funds received therefrom; and

    (B) lend estate money at annual or semiannual interest, and as security for each loan shall take deeds or mortgages of real estate in this State.

    (b) The trustees may invest in:

    (1) any security, including a revenue obligation, issued, insured, or guaranteed by the United States;

    (2) municipal bonds or other bonds that are rated at the time of the transaction by a nationally recognized statistical rating organization, as defined in 15 U.S.C. § 78c(a)(62) as may be amended, in one of its four highest categories;

    (3) repurchase agreements or debt securities of any federally insured financial institution as defined in 8 V.S.A. § 11101(32);

    (4) the shares of an investment company, or an investment trust, such as a mutual fund, closed-end fund, or unit investment trust, that is registered under the federal Investment Company Act of 1940, as amended, if the mutual investment fund has been in operation for at least five years and has net assets of at least $100,000,000.00; or

    (5) deposits in federally insured financial institutions as defined in 8 V.S.A. § 11101(32).

    (c)(1) The trustees shall have full power to hold, purchase, sell, assign, transfer, and dispose of any of the securities and investments in which any of the funds have been invested, as well as the proceeds of the investments.

    (2) The trustees are encouraged to invest in financial institutions operating in the State and in investments within the State that will result in reinvestment in Vermont.

    (3) The provisions of this section as to future investments shall not require the liquidation or disposition of securities legally acquired and held.

    (4) If the municipality has adopted an investment policy, the trustees shall invest in accordance with the provisions of the municipal policy that do not conflict with this section.

    (d) The trustees may delegate management and investment of funds under their charge to the extent that is prudent under the terms of the trust or endowment, and in accordance with section 3415 (delegation of management and investment functions) of the Uniform Prudent Management of Institutional Funds Act, 14 V.S.A. chapter 120. Notwithstanding the limitations on investments set forth in subsection (b) of this section, an agent exercising a delegated management or investment function, if investing, shall invest the funds in a publicly traded security that is:

    (1) registered with the Securities and Exchange Commission pursuant to 15 U.S.C. § 78l and listed on a national securities exchange;

    (2) issued by an investment company registered pursuant to 15 U.S.C. § 80a-8;

    (3) a corporate bond registered as an offering with the Securities and Exchange Commission pursuant to 15 U.S.C. § 78l and issued by an entity whose stock is a publicly traded security;

    (4) a municipal security;

    (5) a deposit in federally insured financial institutions as defined in 8 V.S.A. § 11101(32); or

    (6) a security issued, insured, or guaranteed by the United States. (Amended 2003, No. 150 (Adj. Sess.), § 8; 2017, No. 123 (Adj. Sess.), § 1, eff. May 3, 2018.)