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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.)
