Vermont § 3214 - Issuance of bonds

§ 3214. Issuance of bonds

• (a) A municipality shall have power to issue bonds from time to time in its discretion
  to finance the undertaking of any urban renewal project under this chapter, including,
  without limiting the generality thereof, the payment of principal and interest upon
  any advances for surveys and plans, or preliminary loans and shall also have power
  to issue refunding bonds for the payment or retirement of such bonds previously issued
  by it. Such bonds shall be made payable, as to both principal and interest, solely
  from the income proceeds, revenues, and funds of the municipality derived from or
  held in connection with its undertaking and carrying out of urban renewal projects
  under this chapter; provided, however, that payment of such bonds, both as to principal
  and interest, may be further secured by a pledge of any loan, grant, or contribution
  from the federal government or other source, in aid of any urban renewal projects
  of the municipality under this chapter, and by a mortgage of any such urban renewal
  projects, or any part thereof, title to which is in the municipality. (b) Bonds issued under this section shall not constitute an indebtedness within the meaning
  of any constitutional or statutory debt limitation or restriction, and shall not be
  subject to the provisions of any other law or charter relating to the authorization,
  issuance, or sale of bonds. Bonds issued under the provisions of this chapter are
  declared to be issued for an essential public and governmental purpose and, together
  with interest thereon and income therefrom, shall be exempted from all taxes. (c) Bonds issued under this section shall be authorized by resolution or ordinance of
  the local governing body and may be payable upon demand or mature at such time or
  times, bear interest at such rate or rates, be in such denomination or 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,
  such other characteristics, as may be provided by such resolution or trust indenture
  or mortgage issued pursuant thereto. (d) Such bonds may be sold at not less than par at public sales held after notice published
  prior to such sale in a newspaper having a general circulation in the area of operation
  and in such other medium of publication as the municipality may determine or may be
  exchanged for other bonds on the basis of par; provided, that such bonds may be sold
  to the federal government at private sale at not less than par, and, in the event
  less than all of the authorized principal amount of such bonds is sold to the federal
  government, the balance may be sold at private sale at not less than par at an interest
  cost to the municipality of not to exceed the interest cost to the municipality of
  the portion of the bonds sold to the federal government. (e) In case any of the public officials of the municipality whose signatures appear on
  any bonds or coupons issued under this chapter shall cease to be such officials before
  the delivery of such bonds, such signatures shall, nevertheless, be valid and sufficient
  for all purposes, the same as if such officials had remained in office until such
  delivery. Any provisions of any law to the contrary notwithstanding, any bonds issued
  pursuant to this chapter shall be fully negotiable. (f) In any suit, action, or proceeding involving the validity or enforceability of any
  bond issued under this chapter or the security therefore, any such bond reciting in
  substance that it has been issued by the municipality in connection with an urban
  renewal project, as herein defined, shall be conclusively deemed to have been issued
  for such purpose and such project shall be conclusively deemed to have been planned,
  located, and carried out in accordance with the provisions of this chapter. (Amended 1966, No. 69 (Sp. Sess.), § 9, eff. March 14, 1966; 1969, No. 285 (Adj. Sess.), § 10, eff. April 9, 1970.)