§ 435 - Same-pledge of revenues - Vermont Statutes

§ 3-435. Same-pledge of revenues

(a) Any pledge hereunder shall be valid and binding and shall be deemed continuously perfected for the purposes of the Uniform Commercial Code from the time when the pledge is made; unless otherwise provided in the resolution making the pledge, the pledge of revenues shall include any contract or other rights to receive the same, whether then existing or thereafter coming into existence and whether then held or thereafter acquired by the city, and the proceeds thereof; the revenues, rights and proceeds so pledged and then held or thereafter acquired by the city shall immediately be subject to the lien of such pledge without any physical delivery or segregation 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 city, irrespective of whether such parties have notice thereof. The resolution by which a pledge is made need not be filed or recorded except in the records of the proceedings of the board of light commissioners and no filing need be made under the Uniform Commercial Code.

(b) A resolution pledging revenues hereunder may provide for priorities among payments to be made from such revenues, whether required by statute, the city charter, such resolution or otherwise. The pledge may include revenues otherwise accruing to particular funds established by statute or the city charter. In the event bonds are issued junior and subordinate to other bonds, revenues remaining from time to time which are permitted by the terms of the senior bonds to be used to pay or secure the junior bonds may be pledged for that purpose by the resolution under which the junior bonds are issued. A pledge of revenues under this article shall constitute a sufficient appropriation thereof for the purposes of any provision for appropriation and such revenues may be applied as required by the pledge without further appropriation.