The Vermont Statutes Online

Title 24 Appendix : Municipal Charters

Chapter 003 : City of Burlington

Subchapter 009 : RELATED LAWS

• § 433. Bonds; issuance of

  (a) The City is hereby authorized and empowered to issue negotiable bonds, from time to time, for the purpose of financing the cost of any improvement to the electric plant. Said bonds and the interest thereon shall be payable solely and exclusively from the revenues of the electric plant and shall not constitute general indebtedness of the City nor be an obligation or liability upon the City to pay the same from any funds of the City other than the revenues of the electric plant. No holder or holders of any bonds issued under this article shall ever have the right to compel any exercise of the taxing power of the City to pay said bonds or the interest thereon. Said bonds shall not constitute an indebtedness within the meaning of any debt limitation or restriction and shall not be within any statutory limitation upon the power of the City to issue bonds. It shall be plainly stated on the face of each bond that it has been issued under the provisions of this article and that, it does not constitute an indebtedness of the City but is payable solely from the revenues of its electric plant. Said bonds may be authorized by resolution of the City Council adopted by a majority vote of the members thereof present at any meeting of such Board. Each such resolution shall take effect immediately from its passage and need not thereafter be laid over or published or posted. The issuance of bonds under the provisions of this article by the City shall not be subject to the authorization or approval thereof by the legal voters of the City or to any other authorization or approval except as provided in section 447 of this charter.

  (b) Said bonds may be issued in one or more series, may bear such date or dates, mature at such time or times not exceeding 40 years from their respective dates, bear interest at such rate or rates, be in such denominations, be in such form, either coupon or registered, carry such conversion or registration privileges, have such rank or priority, be executed in such manner, be payable in such medium of payment, at such place or places, and be subject to such terms of redemption, with or without premium, be declared or become due before the maturity date thereof, as such resolutions authorizing their issuance may provide. Said bonds may be sold at public or private sale for such price or prices as the Board of Light Commissioners shall determine.

  (c) In case any officer of the City whose signature appears on any bond or coupon shall cease to be such officer before the delivery of such bond, such signature shall, nevertheless, be valid and sufficient for all purposes, the same as if he or she had remained in office until such delivery. Any provision of any law to the contrary notwithstanding any bonds issued pursuant to this article shall be deemed to be investment securities under the Uniform Commercial Code. Any bonds issued by the City pursuant to the provisions of this article are declared to be issued for an essential public and governmental purpose and to be public instrumentalities, and, together with interest and income thereon, shall be exempt from taxes. The resolution authorizing the issuance of said bonds may provide that the bonds shall contain a recital that they are issued pursuant to this article, which recital shall be conclusive evidence of their validity and of the regularity of this issuance.