§ 244 - Bonds - Vermont Statutes

§ 244. Bonds

(a) Bonds authorized under this subchapter may, without limitation, be issued:

(1) in one or more series of one or more denominations and bearing one or more rates of interest;

(2) in bearer form or registered form with or without privileges of conversion and reconversion from one form to the other;

(3) payable in serial installments or as term bonds, and any series may consist of both types of bonds, provided that all of the bonds of every series shall mature no later than forty years after their dates; and

(4) subject to redemption prior to maturity, with or without the payment of any redemption premium, in accordance with the provisions of the security document.

(b) Bonds shall bear the manual signature of the treasurer of the municipality and the manual or facsimile signature or signatures of the mayor or a majority of the selectmen or trustees as the case may be. Interest coupons, if any, shall bear the facsimile signature of the treasurer. If the municipality has a corporate seal, bonds shall bear the seal or a facsimile of the seal. Bonds executed in accordance with this subchapter shall be valid notwithstanding that before the delivery thereof and payment therefor any or all of the persons whose signatures appear thereon shall have ceased to hold office.

(c) Every bond shall bear a statement on its face that it does not constitute an indebtedness of the municipality except to the extent permitted by this subchapter. Bonds may be sold at public or private sale by the officers authorized to sign them. The price at which bonds are sold may be par or may be more or less than par, but the original purchaser of the bond shall be obligated to pay accrued interest for the period, if any, from the date of the bonds to the date of delivery. All bonds issued under this subchapter and interest coupons applicable thereto, if any, shall be deemed to be negotiable instruments and to be investment securities under the Uniform Commercial Code.

(d) No purchaser of bonds shall be in any way bound to see to the proper application of the proceeds thereof. (Added 1973, No. 197 (Adj. Sess.), § 1; amended 1975, No. 18, § 11, eff. March 27, 1975.)