§ 954 - Proceeds - Vermont Statutes

§ 954. Proceeds

(a) The proceeds arising from the sale of such bonds, except premiums, shall be applied to the purposes for which they were authorized and such purposes shall be considered to include the expenses of preparing, issuing and marketing such bonds and any notes issued under section 955 of this title, and amounts for reserves, but no purchasers of such bonds shall be in any way bound to see to the proper application of the proceeds thereof. The state treasurer shall pay the interest on, principal of, investment return on and maturity value of such bonds and notes as the same fall due or accrue without further order or authority. Any premium received upon the sale of such bonds or notes shall be applied to the payment of the first principal or interest to come due thereon. The state treasurer with the approval of the governor, may establish sinking funds, reserve funds or other special funds of the state as he or she may deem for the best interest of the state. To the extent not otherwise provided, the amount necessary each year to pay the maturing principal and interest of, investment return and maturity value of, and sinking fund installments on all such bonds then outstanding shall be included in and made a part of the annual appropriation bill for the expense of state government, and such principal and interest on, investment return and maturity value of, and sinking fund installments on the bonds as may come due before appropriations for the payment thereof have been made shall be paid from the general fund or from the transportation or other applicable special fund.

(b) The state treasurer is authorized to allocate the estimated cost of bond issuance, or issuances, to the entities to which funds are appropriated by a capital construction act and for which bonding is required as the source of funds. If estimated receipts are insufficient, the state treasurer shall allocate additional costs to the entities. Any remaining receipts shall not be expended, but carried forward to be available for future capital construction acts. If the source of funds appropriated by a capital construction act is other than by issuance of bonds, the state treasurer is authorized to allocate the estimated cost of ongoing debt management services to the entities to which those funds are appropriated.

(c) Notwithstanding any other provisions of law, the state treasurer with the approval of the secretary of administration is hereby authorized to transfer to any authorized projects unspent proceeds derived from the sale of state bonds or notes previously issued for projects heretofore authorized; and the state treasurer is hereby further authorized to issue bonds or notes of the state to replenish such transferred funds for application to the original authorized capital projects. (Added 1959, No. 24, § 4, eff. March 10, 1959; amended 1961, No. 157, eff. June 14, 1961; 1989, No. 276 (Adj. Sess.), § 24, eff. June 20, 1990; 1995, No. 185 (Adj. Sess.), § 41a, eff. May 22, 1996; 1999, No. 29, § 22, eff. May 19, 1999; 2001, No. 61, § 32, eff. June 16, 2001; 2001, No. 149 (Adj. Sess.), § 19, eff. June 21, 2002; 2009, No. 33, § 63.)