Vermont § 974 - Security documents

§ 974. Security documents

• (a) The State Treasurer is authorized to secure bonds authorized under this subchapter
  by a trust agreement that pledges or assigns monies in the Transportation Infrastructure
  Bond Fund, by additional security, insurance, or other forms of credit enhancement
  that may be secured with the bonds on a parity or subordinate basis, or by both. (b) Any trust agreement or credit enhancement agreement entered into pursuant to this
  section shall be valid and binding from the time of the agreement without any physical
  delivery or further act and without any filing or recording under the Uniform Commercial
  Code or otherwise, and the lien of such pledge shall be valid and binding as against
  all parties having claims of any kind in tort, contract, or otherwise, irrespective
  of whether such parties have notice thereof. (c) Any trust agreement or credit enhancement agreement may establish provisions defining
  defaults and establishing remedies and other matters relating to the rights and security
  of the holders of the bonds or other secured parties as determined by the State Treasurer,
  including provisions relating to the establishment of reserves; the issuance of additional
  or refunding bonds, whether or not secured on a parity basis; the application of receipts,
  monies, or funds pledged pursuant to the agreement; and other matters deemed necessary
  or desirable by the State Treasurer for the security of the bonds, and may also regulate
  the custody, investment, and application of monies. (d) For payment of debt service obligations of Transportation Infrastructure Bonds, the
  full faith and credit of the State is hereby pledged. However, if pledging of full
  faith and credit of the State is not necessary to market a Transportation Infrastructure
  Bond in the best interests of the State, the Treasurer shall enter into an agreement
  that establishes that the full faith and credit of the State is not pledged for payment
  of debt service obligations of the bond. In determining whether to pledge the full
  faith and credit of the State, the State Treasurer shall consider the anticipated
  effect of such a pledge on the credit standing of the State, the marketability of
  the Transportation Infrastructure Bond, and other factors he or she deems appropriate. (Added 2009, No. 50, § 28; amended 2011, No. 63, § F.105, eff. June 2, 2011.)