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
004
:
FORM AND NATURE OF BONDS AND NOTES
(Cite as: 24 V.S.A. § 4621)
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§ 4621. Form of obligation; faith and credit
(a) Bonds and notes issued under this chapter are not in any way a debt or liability of
the State and do not create or constitute any indebtedness, liability or obligation
of the State nor are they or do they constitute a pledge of the faith and credit of
the State but all such bonds and notes, unless funded or refunded by bonds or notes
of the Bank, are payable solely from revenues or funds pledged or available for their
payment as authorized herein. Each bond and note other than bonds or notes issued
in book entry form must contain on its face a statement to the effect that the Bank
is obligated to pay the principal thereof and the interest thereon only from revenues
or funds of the Bank and that the State is not obligated to pay the principal or interest
and that neither the faith and credit nor the taxing power of the State is pledged
to the payment of the principal of or the interest on the bonds or notes.
(b) The State does pledge to and agree with the holders of the bonds or notes issued under
this chapter, that the State will not limit or restrict the rights hereby vested in
the Bank to purchase, acquire, hold, sell, or dispose of municipal bonds, revenue
bonds, or other investments or to make loans to governmental units or to establish
and collect such fees or other charges as may be convenient or necessary to produce
sufficient revenues to meet the expenses of operation of the Bank, and to fulfill
the terms of any agreement made with the holders of its bonds or notes or in any way
impair the rights or remedies of the holders of those bonds or notes until the bonds
and notes, together with interest thereon, and interest on any unpaid installments
of interest, and all costs and expenses in connection with any action or proceedings
by or on behalf of the holders, are fully met, paid, and discharged. (Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1983, No. 12, § 2, eff. March 29, 1983; 1987, No. 55, § 13, eff. May 15, 1987.)