Vermont Statutes Title 24 Sec. 1827
Terms Used In Vermont Statutes Title 24 Sec. 1827
- Bond: means any bond or note issued by the municipal corporation and payable out of the net revenues from the operation of a public utility project. See
- Contract: A legal written agreement that becomes binding when signed.
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Fees: shall mean earnings due for official services, aside from salaries or per diem compensation. See
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Municipal corporation: shall include a city, town, village, town school district, graded school district, or other incorporated, union, or unified school district or any entity providing educational services which is eligible to receive State aid under 16 Vt. See
- Trustee: A person or institution holding and administering property in trust.
§ 1827. Enforcement of bond obligations
The municipal corporation shall have power by resolution of its legislative body, adopted in connection with the issuance of the bonds and subject to approval under 30 V.S.A. § 108 to confer upon any holder or holders of a specified amount or percentage of bonds, including a trustee or trustees for such holders, the right in the event of an “event of default” as defined in any contract with the holder or holders of such bonds or the trustee or trustees therefor:
(1) By suit, action, or proceedings in any court of competent jurisdiction to obtain the appointment of a receiver of the public utility system of the municipal corporation or any part or parts thereof. If such receiver be appointed he or she may enter and take possession of such public utility system of the municipal corporation or any part or parts thereof and operate and maintain the same, and collect and receive all revenues thereafter arising therefrom in the same manner as the municipal corporation itself might do and shall deposit such monies in a separate account or accounts and apply the same in accordance with the obligations of the municipal corporation as the court shall direct. All actions of receivers authorized under this section shall be subject to the same regulatory requirements applicable to the municipal utility. Provided, however, that notwithstanding the appointment of a receiver the municipal corporation shall retain the right subject to regulatory requirements to fix the rates, fees, and charges to be charged by the public utility system, the revenues from which are pledged to pay bonds and the interest thereon, and to receive from the receiver from time to time that portion of any revenues collected which shall be allocable to the municipal corporation on account of costs for public utility system maintenance, operation, repair, and regulation or other costs payable by the municipal corporation.
(2) By suit, action, or proceedings in any court of competent jurisdiction to require the legislative body of the municipal corporation and the treasurer of the municipal corporation to account as if it, he, or she were the trustee of an express trust. Any such resolution shall constitute a contract between the municipal corporation and the holders of bonds of such issue. (Added 1989, No. 111, § 10, eff. June 22, 1989.)