§ 280i - Disbursement and use of funds - Vermont Statutes

§ 280i. Disbursement and use of funds

(a) Subject to limitations under ISTEA and the NHS Act and other federal laws, other laws respecting the use of particular monies in the program, and the provisions of any applicable trust agreement, amounts in the program may be used only:

(1) to provide financial assistance, including through loans and leases, to finance or refinance the costs of qualified projects and to provide for all or any part of the interest costs on loans made by the program during the construction of such qualified projects;

(2) to guarantee or purchase insurance or other credit enhancement for bonds of qualified borrowers issued to finance the costs of qualified projects;

(3) to provide reserves for or otherwise secure bonds issued pursuant to this subchapter and to provide insurance or other credit enhancement for such bonds;

(4) to provide a subsidy for, or to otherwise assist, qualified borrowers in the payment of debt service costs on loans made by the program;

(5) to provide reserves for, or to otherwise secure, amounts payable by qualified borrowers on loans made by and leases with the program in the event of default by a particular qualified borrower or, on a parity basis, by any qualified borrower;

(6) to earn interest on the fund; and

(7) for the costs of administering the program; provided, however, that not more than two percent of the federal funds contributed to the program pursuant to section 350 of the NHS Act may be expended for such administrative costs.

(b) For necessary and convenient administration of the fund, the program shall establish the highway account and the transit account, as provided in section 280n of this title, and one or more additional accounts and sub-accounts within the Vermont economic development authority as shall be necessary to meet the requirements of the NHS Act and any other applicable federal law requirements or as the program shall otherwise deem necessary or desirable in order to implement the provisions of this subchapter or to comply with any trust agreement. The program may also establish in any trust agreement or otherwise, as the secretary shall determine, one or more other funds and accounts for revenues and other funds not required to be held in the program, and to apply and disburse such funds for the purposes of the program. (Added 1997, No. 43, § 1.)