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
005
:
SALE AND ISSUANCE OF BONDS AND NOTES
(Cite as: 24 V.S.A. § 4652)
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§ 4652. Waiver of defenses; rights of holder
On the sale and issuance of any municipal bonds or revenue bonds to the Bank by any
governmental unit, that governmental unit is deemed to agree that on the failure of
that governmental unit to pay interest or principal on any of the municipal bonds
or revenue bonds owned or held by the Bank when payable, all defenses to nonpayment
are waived; and further, with respect to municipal bonds that constitute general obligation
bonds supported by the full faith and credit of the municipality, upon nonpayment
and demand on that governmental unit for payment, if funds are not available in its
treasury to make payment, the governing body of that governmental unit shall forthwith
assess a tax on the grand list of the governmental unit, sufficient to make payment
with 12 percent interest thereon, and cause the tax to be collected within 60 days;
and further, with respect to municipal bonds that do not constitute general obligation
bonds supported by the full faith and credit of the municipality and revenue bonds,
upon nonpayment and demand on that governmental unit for payment, such governmental
unit shall make payment together with interest thereon of 12 percent, which shall
be due and payable within 60 days; and further, notwithstanding any other law, including
any law under which the municipal bonds or revenue bonds were issued by that governmental
unit, the Bank upon nonpayment is constituted a holder or owner of the municipal bonds
or revenue bonds as being in default. Also, notwithstanding any other law as to time
or duration of default or percentage of holders or owners of bonds entitled to exercise
rights of holders or owners of bonds in default, or to invoke any remedies or powers
thereof or of any trustee in connection therewith or of any board, body, agency, or
commission of the State having jurisdiction in the matter or circumstance, the Bank
may thereupon avail itself of all other remedies, rights, and provisions of law applicable
in that circumstance, and the failure to exercise or exert any rights or remedies
within any time or period provided by law may not be raised as a defense by the governmental
unit. All of the bonds of the issue of municipal bonds or revenue bonds of a governmental
unit on which there is nonpayment, are for all of the purposes of this section deemed
to be due and payable and unpaid. The Bank may carry out the provisions of this section
and exercise all of the rights and remedies and provisions of law provided or referred
to in this section. (Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1987, No. 15, § 18, eff. May 15, 1987; 2023, No. 72, § 28, eff. June 19, 2023.)