§ 610. Bonding authority - Town of Rockingham

(a) The Town of Rockingham, when authorized as provided in 24 V.S.A. chapter 53, may pledge its credit by issuing its negotiable orders, warrants, notes, or bonds for project costs, or its share of project costs, of electric power facilities authorized pursuant to subsection 604(d) of this title. Such project costs may include all costs, whether incurred prior to or after the issue of bonds or notes relating to the acquisition of facilities under this chapter, of acquisition, site development, construction, improvement, enlargement, reconstruction, alteration, machinery, equipment, furnishings, demolition or removal of existing buildings or structures, including the cost of acquiring any lands to which such buildings or structures may be moved, financing charges, interest prior to and during the carrying out of any project and for a reasonable period thereafter, planning, engineering, financial advisory and legal services, administrative expenses, prepayments under contracts made pursuant to section 604 of this title, the funding of notes issued for project costs, and all other expenses incidental to the determination of the feasibility of any project, or to carrying out the project, or to placing the project in operation.

(b) The obligations shall be issued in accordance with 24 V.S.A. chapter 53. The amount of obligations issued for such purpose shall not be considered in computing any debt limit applicable to the Town.

(c) The bonding authority of the Town of Rockingham set forth by this section shall be subject to the following:

(1) The Town of Rockingham shall not incur indebtedness in order to support the acquisition of the hydroelectric facility specified in subsection 604(d) of this title except in the form of bonds issued under 24 V.S.A. chapter 53, subchapter 2, payable solely from the net revenues from that hydroelectric facility, nor shall the Town have the authority to use the Vermont Municipal Bond Bank to assist with the Town's acquisition of that hydroelectric facility; provided, however, the foregoing limitations shall not restrict the Town from using whatever financing options, or combinations of financing options, otherwise legally available to it for purposes of acquiring, repairing, improving, or maintaining any other parts of a municipal plant as defined in chapter 79 of this title, or for purposes of repairing, improving, or maintaining the hydroelectric facility after the Town owns the hydroelectric facility.

(2) Revenue bonds issued for purposes of the Town's acquisition of the hydroelectric facility shall not be deemed to constitute a debt or liability or obligation of the Town, the State, or of any political subdivision of it, nor shall those revenue bonds be deemed to constitute a pledge of the faith and credit of the Town, the State, or of any political subdivision, but shall be payable solely from the revenues from the hydroelectric facility. Any revenue bond issued by the Town to support the Town's acquisition of the hydroelectric facility shall contain on its face a statement to the effect the Town shall not be obligated to pay the same nor the interest on it, except from the revenues or assets pledged for those purposes, and neither the faith and credit nor the taxing power of the Town, the State, or of any political subdivision of it is pledged to the payment of the principal of or the interest on such obligations.

(3) The State does hereby pledge to agree with the holders of the notes and bonds issued under this section that the State will not limit or restrict the rights hereby vested in the Town to perform its obligations and to fulfill the terms of any agreement made with the holders of its bonds or notes. Neither will the State in any way impair the rights and remedies of the holders until the notes and bonds, together with interest on them, and interest on any unpaid installments of interest, are fully met, paid, and discharged. The Town is authorized to execute this pledge and agreement of the State in any agreement with the holders of the notes or bonds. (Added 2003, No. 121 (Adj. Sess.), § 97, eff. June 8, 2004.)