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
006
:
SPECIAL FUNDS
(Cite as: 24 V.S.A. § 4671)
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§ 4671. Reserve fund
(a) The Bank shall establish and maintain a special fund called the “Vermont Municipal
Bond Bank Reserve Fund” in which there shall be deposited:
(1) All monies appropriated by the State for the purpose of the Fund;
(2) All proceeds of bonds required to be deposited therein by terms of any contract between
the Bank and its bondholders or any resolution of the Bank with respect to the proceeds
of bonds; and
(3) Any other monies or funds of the Bank that it determines to deposit therein.
(b) Monies in the Reserve Fund shall be held and applied solely to the payment of the
interest on and principal of presently outstanding bonds of the Bank and any bonds
issued on a parity therewith and any bonds issued to refund such bonds, all as they
become due and payable and for the retirement of bonds. Money may not be withdrawn
if it reduces the amount in the Reserve Fund to an amount less than the “required
debt service reserve,” as defined in this subsection, except for payment of interest
then due and payable on bonds and the principal of bonds then maturing and payable
and for the retirement of bonds in accordance with the terms of any contract between
the Bank and its bondholders and for which payments other monies of the Bank are not
then available. As used in this subsection “required debt service reserve” means,
as of any date of computation, the amount or amounts required to be on deposit in
the Reserve Fund as provided by resolution of the Bank. Required debt service reserve
shall not be required by resolution of the Bank to exceed “maximum debt service.”
As used in this subsection “maximum debt service” means, as of any date of computation,
the largest amount of money required by the terms of all contracts between the Bank
and its bondholders to be raised in any succeeding calendar year for the payment of
interest on and maturing principal of outstanding bonds and payments required by the
terms of any contracts to sinking funds established for the payment or redemption
of bonds, all calculated on the assumption that the bonds will cease to be outstanding
after date of the computation by reason of the payment of the bonds at their respective
maturities and the payments of the required moneys to sinking funds and the application
thereof in accordance with the terms of all contracts to the retirement of bonds. (Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1971, No. 148 (Adj. Sess.), § 7, eff. Feb. 14, 1972; 1987, No. 55, § 20, eff. May 15, 1987.)