Vermont § 3353 - Indebtedness

§ 3353. Indebtedness

• (a) General obligations. A consolidated water district may incur indebtedness as provided by chapter 53, subchapter
  1 of this title and by chapter 89 of this title for the purpose of paying the cost
  of a water system and improvements to the water system or for funding or refunding,
  including the payment of premium, any bonds or other evidences of indebtedness issued
  or assumed by the district, provided, however, that the limits on indebtedness in
  chapter 53 of this title or otherwise shall not apply to indebtedness incurred or
  assumed by a consolidated district for the purposes of this chapter. (b) Joint and severable obligations. Obligations incurred under chapter 53, subchapter 1 and chapter 89 of this title or
  as otherwise authorized in this chapter by a consolidated water district, except obligations
  incurred under chapter 53, subchapter 2, shall be the joint and several obligations
  of the district and the member towns composing it. However, as among the member towns,
  their respective shares of the obligation shall be apportioned and paid in the manner
  provided in this chapter. Any joint or several liability incurred by a member town
  under the provisions of this chapter shall not be considered in determining its debt
  limit for its own separate purposes. Notwithstanding the limitations in sections 1755 and 1759 of this title, bonds or other evidences of indebtedness of a consolidated water district may be
  authorized by a majority of the voters present and voting on the question at a district
  meeting, may be paid in not more than 40 years from their date of issue, may be made
  callable at the option of the district with or without premium, and the serial maturities
  of the bonds or evidences of indebtedness may be so arranged that beginning with the
  first year in which principal is payable, the amount of principal and interest payable
  in any year shall be as nearly equal as is practicable according to the denominations
  in which the bonds or other evidences of indebtedness are issued. (c) Obligations payable solely from revenue. In addition to the authority granted in this section, a consolidated water district
  may issue bonds or other evidences of indebtedness pursuant to chapter 53, subchapter
  2 of this title; provided, however, that no such bonds payable solely from revenues
  shall be issued while the district has outstanding any bonds or other evidences of
  indebtedness for which the district and the member towns are jointly and severally
  liable as provided under this chapter, except notes or other evidences of indebtedness
  issued temporarily in anticipation of revenue. (Added 1964, No. 20 (Sp. Sess.), § 13, eff. March 10, 1964; amended 2019, No. 131 (Adj. Sess.), § 265.)