Vermont § 263 - Loan; limitations

§ 263. Loan; limitations

• (a) When it has been determined by the Authority that the establishment or expansion of
  a particular eligible facility will accomplish the public purposes of this act, the
  Authority may contract to loan to the obligor an amount not in excess of 40 percent
  of the cost of such eligible facility. In addition, the Authority shall have determined
  that the obligor has obtained from other independent and responsible sources, such
  as financial institutions or otherwise, a firm commitment for all other funds, over
  and above the loan of the Authority and such funds or property as the local development
  corporation may hold, necessary for payment of all of the cost of the project, and
  that the sum of all these funds, together with any funds, machinery, and equipment
  to be provided by the obligor is adequate for the completion and operation of the
  project. (b) Any loan of the Authority under this subchapter shall be for a period of time and
  shall bear interest at such rate as determined by the Authority and shall be secured
  by a mortgage on the eligible facility or a lien on its assets for which the loan
  was made or upon the assets of a municipal communications plant, including the net
  revenues derived from the operation thereof, or both. The secured loan may be subordinate
  to one or more prior loans, including the liens securing the obligation issued to
  secure the commitment of funds from the independent and responsible sources and used
  in the financing of the economic development project. Monies loaned by the Authority
  shall be withdrawn from the Vermont Jobs Fund and paid over to the obligor in such
  manner as provided and prescribed by the rules of the Authority. All payments of principal
  and interest on the loans shall be deposited by the Authority in the Vermont Jobs
  Fund. (c) Loans by the Authority for an eligible facility under this subchapter shall be made
  only in the manner and to the extent provided in this section, except, however, in
  those instances where an agency of the federal government participates in the financing
  of an eligible facility by loan, grant, or otherwise. When any federal agency participates,
  the Authority may adjust the required ratio of financial participation by the local
  development corporation, independent sources of funds, and the Authority in such manner
  as to ensure the maximum benefit available by the participation of the federal agency.
  Where any federal agency participating in the financing of an eligible facility is
  not permitted to take as security a mortgage, the lien of which is junior to the mortgage
  of the Authority, the Authority shall be authorized to take as security for its loan
  a mortgage junior in lien to that of the federal agency. (d) The Authority may develop and incorporate into loan instruments formulae which require
  prepayment of loans when the profits attained by the borrower warrant prepayment. (e) All real and personal property to which the Authority holds title by reason of foreclosure
  upon a mortgage or other security granted it pursuant to this subchapter, or a voluntary
  conveyance in lieu thereof, shall, as long as it is not leased or rented, be exempt
  from all taxes and special assessments of the State and all local municipal property
  taxes for the remaining balance of the tax year in which title becomes vested in the
  Authority and the entire next succeeding year; provided, however, that thereafter
  the Authority shall pay 50 percent of the local municipal property taxes annually
  assessed against such property during the term of the Authority’s ownership. (f) The Authority shall give preference to projects located within labor market districts
  declared to be economically depressed areas as defined by the Vermont Agency of Commerce
  and Community Development or the Vermont Department of Labor, or to projects located
  within the area that is a designated job development zone under chapter 29, subchapter
  2 of this title. (g) The Authority shall give preference to projects involving loans to employee-owned
  businesses, to businesses that are becoming employee-owned through the purchase of
  stock or business assets, and to start-up businesses that will be owned by substantially
  all of the employees. (h) All actions of a municipality taken under this subchapter for the financing of an
  eligible project described in subdivision 212(6) shall be as authorized in section 245 of this title. (i) The provisions of section 247 of this title shall apply to the financing of an eligible project described in subdivision 216(6) of this title. (Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18, § 19, eff. March 27, 1975; 1975, No. 187 (Adj. Sess.), § 6; 1977, No. 228 (Adj. Sess.), § 6, eff. April 17, 1978; 1981, No. 54, § 16, eff. April 28, 1981; 1985, No. 172 (Adj. Sess.), § 4; 1985, No. 172 (Adj. Sess.), § 4; 1993, No. 89, § 3, eff. June 15, 1993; 1995, No. 190 (Adj. Sess.), § 1(a); 2003, No. 121 (Adj. Sess.), § 90, eff. June 8, 2004; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2005, No. 170 (Adj. Sess.), § 3; 2015, No. 41, § 25, eff. June 1, 2015; 2025, No. 26, § 1, eff. July 1, 2025.)