§ 751 - Form of obligation; faith and credit; redemption - Vermont Statutes

§ 751. Form of obligation; faith and credit; redemption

(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 bonds and notes are general obligations of the authority payable solely from revenues or funds pledged or available for their payment as authorized in this chapter subject only to any agreements with the holders of particular notes or bonds pledging any particular receipts or revenues. Each bond and note shall contain on its face a statement to the effect that the authority is obligated to pay the principal and the interest only from revenues or funds of the authority 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 authority to perform its obligations 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 are fully met, paid and discharged. The authority is authorized to execute this pledge and agreement of the state in any agreement with the holders of such bonds or notes.

(c) Notwithstanding and in addition to any provisions for the redemption of bonds which may be contained in any contract with the holders of the bonds, the state may, upon furnishing sufficient funds therefor, require the authority to redeem, prior to maturity, as a whole, any issue of bonds on any interest payment date not less than ten years after the date of the bonds of the issue at 106 percent of their face value and accrued interest or on an earlier redemption date or at a lower redemption price provided in the bonds. Notice of the redemption shall be given in the manner prescribed by the authority in the resolution authorizing the issuance of the bonds. (Added 1973, No. 14, § 2, eff. Feb. 23, 1973.)