§ 4621 - Form of obligation; faith and credit - Vermont Statutes

§ 4621. Form of obligation; faith and credit

(a) Bonds and notes issued under this chapter are not in any way a debt or liability of the state and do not create or constitute any indebtedness, liability or obligation of the state nor are they or do they constitute a pledge of the faith and credit of the state but all such bonds and notes, unless funded or refunded by bonds or notes of the bank, are payable solely from revenues or funds pledged or available for their payment as authorized herein. Each bond and note other than bonds or notes issued in book entry form must contain on its face a statement to the effect that the bank is obligated to pay the principal thereof and the interest thereon only from revenues or funds of the bank and that the state is not obligated to pay the principal or interest and that neither the faith and credit nor the taxing power of the state is pledged to the payment of the principal of or the interest on the bonds or notes.

(b) The state does pledge to and agree with the holders of the bonds or notes issued under this chapter, that the state will not limit or restrict the rights hereby vested in the bank to purchase, acquire, hold, sell or dispose of municipal bonds, revenue bonds or other investments or to make loans to governmental units or to establish and collect such fees or other charges as may be convenient or necessary to produce sufficient revenues to meet the expenses of operation of the bank, and to fulfill the terms of any agreement made with the holders of its bonds or notes or in any way impair the rights or remedies of the holders of those bonds or notes until the bonds and notes, together with interest thereon, and interest on any unpaid installments of interest, and all costs and expenses in connection with any action or proceedings by or on behalf of the holders, are fully met, paid and discharged. (Added 1969, No. 216 (Adj. Sess.), § 3, eff. March 27, 1970; amended 1983, No. 12, § 2, eff. March 29, 1983; 1987, No. 55, § 13, eff. May 15, 1987.)