Vermont § 951a - Debt service funds

§ 951a. Debt service funds

• (a) Three governmental debt service funds are hereby established: (1) the General Obligation Bonds Debt Service Fund to fulfill debt service obligations
  of general obligation bonds from all funding sources; (2) the Transportation Infrastructure Bonds Debt Service Fund to fulfill debt service
  obligations of transportation infrastructure bonds funded primarily by the revenues
  of the Transportation Infrastructure Bond Fund; and (3) other debt service funds to fulfill debt service obligations of other long-term debt
  funded by governmental fund dedicated revenue sources. (b) Financial resources in each fund shall consist of the transfer of funding sources
  by the General Assembly to fulfill future debt service obligations, bond proceeds
  raised to fund a permanent reserve required by a trust agreement entered into to secure
  bonds, transfers of appropriations effected pursuant to section 706 of this title, investment income earned on balances held in trust agreement accounts as required
  by a trust agreement, and such other amounts as directed by the General Assembly or
  that are specifically authorized by provisions of this title. Each debt service fund
  shall account for the accumulation of resources and the fulfillment of debt service
  obligations within the current fiscal year and the accumulation of resources for debt
  service obligations maturing in future fiscal years. (c) Debt service obligations of general obligation bonds, transportation infrastructure
  bonds, or other authorized long-term obligations shall be fulfilled from the respective
  governmental debt service funds established in this section. (d) As used in this section, “debt service obligations” of bonds include requirements
  to: (1) pay principal and interest, sinking fund obligations, and redemption premiums; (2) pay investment return on and the maturity value of capital appreciation bonds; (3) provide for reserves required by a trust agreement entered into to secure bonds; and (4) provide any additional security, insurance, or other form of credit enhancement required
  by a trust agreement entered into to secure bonds. (Added 2011, No. 63, § F.101, eff. June 2, 2011; amended 2025, No. 27, § F.169, eff. May 21, 2025.)