§ 279b - Credit of the state pledged - Vermont Statutes

§ 279b. Credit of the state pledged

(a) Upon registration by the authority of an eligible loan, the full faith and credit of the state shall be pledged in an amount equal to the reserve premium payment deposited to the fund by the participating bank in connection with such loan. The aggregate amount of the credit of the state which may be pledged pursuant to the provisions of this subchapter shall not exceed $1,000,000.00 at any time.

(b) The state treasurer is authorized and directed to transfer to the fund, without further approval, first from the indemnification fund created under section 222a of this title and then from available cash in the treasury or from the proceeds of full faith and credit bonds or notes issued pursuant to section 223 of this title, such amounts as may be requested from time to time by the authority to enable it to perform its obligations under this subchapter.

(c) Upon entering into a contract with a participating bank, the full faith and credit of the state shall be pledged in the amount of $50,000.00 to the reserve account of such bank, created under section 279 of this title. Such amount shall be reduced on a pro rata basis for actual reserve fund contributions resulting from loans made under this subchapter. (Added 1993, No. 89, § 7; amended 1993, No. 221 (Adj. Sess.), § 8; 1997, No. 156 (Adj. Sess.), § 57, eff. April 29, 1998; 1999, No. 131 (Adj. Sess.), § 3; 2005, No. 6, § 87e, eff. March 26, 2005; 2009, No. 54, § 111.)