Vermont § 3856 - Bonds

§ 3856. Bonds

• (a) The Agency is authorized to issue from time to time bonds or notes of the Agency for
  the purposes authorized by this chapter and refunding bonds for the purpose of refunding
  any bonds issued by the Agency under this chapter, including the payment of any redemption
  premium thereon and any interest accrued or to accrue to the date of the redemption
  of such bonds, irrespective of whether the bonds to be refunded have or have not matured.
  Refunding bonds may also be issued by the Agency for the purpose of refunding any
  bonds, including refunding bonds, issued by the Agency under this chapter and paying
  all or any part of the cost of acquiring or constructing any facilities. The issuance
  of the refunding bonds, the maturities and other details thereof, the rights and remedies
  of the holders thereof and the rights, powers, privileges, and obligations of the
  Agency with respect to the same shall be governed to the fullest extent feasible by
  the provisions of this chapter pertaining to bonds. The Agency may also issue its
  negotiable bonds for the purpose of paying or otherwise satisfying in accordance with
  their terms any bonds, mortgages, notes, loans, or other contractual obligations of
  any eligible institution assigned or transferred to or assumed by the Agency in connection
  with financing the acquisition by the Agency of any facilities from such eligible
  institution. Except as may otherwise be expressly provided by the Agency, bonds and
  notes issued under this chapter shall be general obligations, payable out of any monies
  or revenues of the Agency, subject only to any agreements with the holders of the
  bonds or notes pledging any particular monies or revenues. Notwithstanding any of
  the provisions of this chapter or any recitals in any bonds or notes issued under
  this chapter, all bonds, notes, and interest coupons appertaining to them shall have
  and are hereby declared to have all the qualities and incidents, including negotiability,
  of investment securities under the Uniform Commercial Code, but no provision of such
  code respecting the filing of a financing statement to perfect a security interest
  shall be applicable to any security interest created in connection with the issuance
  of any bonds or notes. No bonds or notes of the Agency may be issued to acquire or
  construct any facilities unless the Agency first certifies to the Governor that in
  its opinion such facilities are needed and will provide adequate revenue derived from
  rents or otherwise to repay the bonds and the interest thereon when due. (b) The bonds shall be authorized by resolution of the board, be in such denominations
  and bear such date or dates, mature at such time or times not exceeding 40 years from
  their respective dates, be in such forms, either coupon or registered, carry such
  registration privileges, 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 as the
  Agency may provide by resolution or in the trust indenture. If any officer whose
  signature or a facsimile thereof appears on any bonds, notes, or coupons ceases to
  be that officer before the delivery of the bonds or notes, the signature or facsimile
  shall nevertheless be valid and sufficient for all purposes as if he or she had remained
  in office until the delivery, and any bond or note may bear the facsimile signature
  of or may be signed by that person although at the date of the bond or note the person
  may not have been that officer. The Agency may sell bonds in such amounts and in
  such manner, either at public or private sale, and for such prices as it may determine
  may best carry out the purposes of this chapter. (c) The bonds may be issued for any corporate purpose of the Agency including, without
  limiting the generality of the foregoing, payment to any reserve fund required by
  any trust indenture securing bonds or any bond resolution authorizing bonds. (d) Any resolution authorizing bonds or the trust indenture securing them may contain
  provisions, which may be a part of the contract with the holders of the bonds, as
  to: (1) pledging all or any part of the monies of the Agency to secure the payment of the
  bonds, including the revenues of designated facilities, the proceeds of any grant
  in aid of the Agency received from any private or public source, or any monies received
  under the terms of lease; (2) the setting aside of the revenues or sinking funds and the regulations or disposition
  thereof; (3) limitations on the purpose to which the proceeds of sale of any issue of bonds then
  or thereafter to be issued may be applied; (4) limitations on the issuance of additional bonds, the terms upon which additional bonds
  may be issued and secured, and the refunding of outstanding or other bonds; (5) the procedure, if any, by which the terms of any contract with bondholders may be
  amended or abrogated, the amount of bonds to which the holders must consent, and the
  manner in which consent may be given; (6) the creation of special funds into which any monies of the Agency may be deposited; (7) vesting in a trustee or trustees such properties, rights, powers, and duties in trust
  as the Agency may determine, which may include any or all of the rights, powers, and
  duties of the trustee appointed by the bondholders, and limiting or abrogating the
  right of the bondholders to appoint a trustee under such section or limiting the rights,
  duties, and powers of the trustee; and (8) defining the act or omissions to act that shall constitute a default in the obligations
  and duties of the Agency to the bondholders and providing for the rights and remedies
  of the bondholders in the event of such a default, including as a matter of right
  the appointment of a receiver. (e) Any pledge of revenues or other monies made by the Agency shall be valid and binding
  from the time when the pledge is made; the revenues or other monies so pledged and
  thereafter received by the Agency shall immediately be subject to the lien of the
  pledge without any physical delivery thereof or further act, and the lien of any such
  pledge shall be valid and binding as against all parties having claims of any kind
  in tort, contract, or otherwise against the Agency, irrespective of whether those
  parties have notice thereof. Neither the resolution nor any other instrument by which
  a pledge is created need be recorded or filed in any public record. (f) Neither the members of the board nor any persons executing the bonds shall be liable
  personally on them or be subject to any personal liability or accountability by the
  reason of the issuance thereof. (g) The Agency may, out of funds available therefor, purchase any bonds issued by it at
  a price not exceeding the redemption price thereof. All bonds so purchased shall
  be cancelled. (h)(1) In the discretion of the Agency, the bonds may be secured by a trust indenture by
  and between the Agency and a corporate trustee, and the resolution authorizing the
  bonds may provide for the appointment of a corporate trustee for the purpose of securing
  the bonds, which may be any trust company or bank having the powers of a trust company
  in or out of the State of Vermont. (2) The trust indenture or resolution authorizing the bonds: (A) may contain reasonable provisions for protecting and enforcing the rights and remedies
  of the bondholders, including covenants setting forth the duties of the Agency in
  relation to the acquisition, construction, maintenance, operation, repair, and insurance
  of the facilities and the custody, safeguarding, and application of all monies; and (B) may provide that any facility shall be constructed and paid for under the supervision
  and approval of a bond construction oversight committee or other internal committee
  of the borrower’s board of directors or trustees that has been designated to provide
  reasonable assurance and reporting, or both, so that all phases of construction comply
  with applicable Vermont statutes and rules and the covenants of all bond financing
  agreements. (3) The Agency may provide by the trust indenture or resolution authorizing the bonds
  for the payment of the proceeds of the bonds and the revenues of any facility or monies
  received under the terms of any lease, as the case may be, to the trustee of the trust
  indenture or resolution authorizing the bonds or other depository, and for the method
  of disbursement thereof, with such safeguards and restrictions as it may determine. (4) If the bonds are secured by trust indenture or by the appointment of a trustee pursuant
  to the resolution authorizing the bonds, the bondholders shall have no authority to
  appoint a separate trustee to represent them. (i) Prior to the preparation of definitive bonds, the Agency may, under like restrictions,
  issue interim receipts or temporary bonds, with or without coupons, exchangeable for
  definitive bonds when they have been executed and are available for delivery. The
  Agency may also provide for the replacement of any bonds or notes that shall become
  mutilated or shall be destroyed or lost. The Agency may exercise all the powers conferred
  by this chapter without obtaining the consent of any department, division, commission,
  board, bureau, or agency of the State and without any other conditions or things than
  those proceedings, conditions, or things that are specifically required by this chapter.
  The Agency shall have power, at any time and from time to time after the authorization
  under this chapter of the issuance of bonds of the Agency, to borrow money for the
  purpose for which the bonds are to be issued in anticipation of the receipt of the
  proceeds of the sale of the bonds and within the authorized maximum amount of the
  bonds. The Agency is authorized to issue its notes under the provisions of this subsection
  to evidence money thus borrowed, which notes shall be payable from the proceeds of
  the sale of bonds and from any other money that may be made available for such payment.
  The notes shall mature not later than five years after the date of the authorization
  of the issuance of the bonds under this chapter. The notes may be renewed from time
  to time, but all such notes shall mature within the time limit for the payment of
  the money thus borrowed. The notes shall be authorized by a resolution of the Agency
  and shall be in such denomination or denominations, shall bear interest at such rate
  or rates, shall be in such form, and shall be executed in such manner, all as the
  Agency shall prescribe. The notes may be sold at any public or private sale in such
  manner and for such prices, or, if the notes shall be renewal notes, may be exchanged
  for notes then outstanding on such terms, as the Agency shall determine. (j) In the case of bonds issued in connection with a new health care project subject to
  the provisions of 18 V.S.A. chapter 221, subchapter 5, the Agency shall not authorize bonds on behalf of an eligible institution
  defined under subdivision 3851(c)(5) of this title, unless the project and the capital expenditures associated with the project have
  been approved by the Green Mountain Care Board, pursuant to 18 V.S.A. chapter 221, subchapter 5. The Agency shall consider the recommendations of the Board in connection
  with any such proposed authorization. (Added 1966, No. 56 (Sp. Sess.), § 7, eff. March 12, 1966; amended 1969, No. 80, eff. April 18, 1969; 1969, No. 224 (Adj. Sess.),§§ 5, 9, eff. March 31, 1970; 2003, No. 53, § 20; 2003, No. 63, § 74, eff. June 11, 2003; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2015, No. 23, § 43; 2019, No. 131 (Adj. Sess.), § 117.)