§242. Financing documents

Link to law: http://legislature.vermont.gov/statutes/section/10/012/00242
Published: 2015

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The Vermont Statutes Online



Title

10

:
Conservation and Development






Chapter

012

:
VERMONT ECONOMIC DEVELOPMENT AUTHORITY






Subchapter

004
:
ECONOMIC DEVELOPMENT REVENUE BONDS










 

§

242. Financing documents

(a) A financing

document shall:

(1) Provide for

payments by the user at such times and in such amounts as are necessary in

order to pay the debt service on all bonds issued to finance the project as

they become due; and

(2) Obligate the

user to pay all the costs and expenses of operation, maintenance, upkeep and

insurance of the eligible facility.

(b) A financing

document may:

(1) Provide for

payments by the user which include amounts in addition to the amounts required

to pay debt service;

(2) Obligate a

user to make payments before the eligible facility exists or becomes functional

and to make payments after the eligible facility has ceased to exist or be

functional to any extent and from any cause whatsoever;

(3) Obligate a

user to make payments regardless of whether the user is in possession or is

entitled to be in possession of the eligible facility;

(4) Allocate

responsibility between the municipality and the user for making purchases and

contracts required for the project;

(5) Contain an

option for the user to acquire any ownership or possessory interest which the

municipality may have in the eligible facility for nominal consideration upon

payment of the bonds or upon the user's making adequate and secure provision

for their payment and provide for the automatic transfer of the municipality's

interest in the facility upon the effective exercise of the option;

(6) Provide that

some or all of the user's obligations shall be unconditional and shall be

binding and enforceable in all circumstances whatsoever notwithstanding any

other provision of law; and

(7) Contain such

other provisions and covenants relating to the use, maintenance, repair,

insurance and replacement of the eligible facility as the municipality and the

user deem necessary for the protection of themselves or others. (Added 1973,

No. 197 (Adj. Sess.), § 1; amended 1975, No. 18, § 9, eff. March 27, 1975;

1993, No. 89, § 3(b), eff. June 15, 1993.)
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