BILLASPASSEDBYTHEHOUSE H.398
2025 Page1of65
H.398
IntroducedbyRepresentativesMarcotteofCoventry,GraningofJericho,and
PriestleyofBradford
ReferredtoCommitteeon
Date:
Subject:Conservationanddevelopment;economicdevelopment
Statementofpurposeofbillasintroduced:Thisbillproposestoamendcertain
provisionsgoverningtheVermontEconomicDevelopmentAuthority.
AnactrelatingtotheVermontEconomicDevelopmentAuthority
ItisherebyenactedbytheGeneralAssemblyoftheStateofVermont:
Sec.1.10V.S.A.chapter12isamendedtoread:
CHAPTER12.VERMONTECONOMICDEVELOPMENT AUTHORITY
***
§212.DEFINITIONS
Asusedinthischapter:
***
(6)“Eligiblefacility”or“eligibleproject”meansanyindustrial,
commercial,oragriculturalenterpriseorendeavorapprovedbytheAuthority
thatmeetsthecriteriaestablishedintheVermontSustainableJobsStrategy
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19 BILLASPASSEDBYTHEHOUSE H.398
2025 Page2of65
adoptedbytheGovernorundersection280bofthistitleusedinatradeor
businesswhetherornotsuchbusinessisoperatedforprofit,includinglandand
rightsinland,air,orwater;buildings;structures;machinery;andequipmentof
sucheligiblefacilitiesoreligibleprojects,exceptthataneligiblefacilityor
projectshallnotincludetheportionofanenterpriseorendeavorrelatingtothe
saleofgoodsatretailwheresuchgoodsaremanufacturedprimarilyoutof
State,andexceptfurtherthataneligiblefacilityorprojectshallnotincludethe
portionofanenterpriseorendeavorrelatingtohousingunlessotherwise
authorizedinthischapter,however,certainhousingprojectsdesignedforthe
purposeofhousingemployeesofabusinessmaybeeligibleuponconsentof
theVermontHousingFinanceAgency.Suchenterprisesorendeavorsmay
include:
***
(T)Anycapitalimprovement;purchaseofreceivables,property,
assets,commodities,bonds,orotherrevenuestreamsorrelatedassets;working
capitalprogramorliability;orotherinsuranceprogram.
***
(9)“Insurancecontract”meansacontractinsuringmortgagepayments
undersubchapter2ofthischapter.[Repealed.]
***
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 BILLASPASSEDBYTHEHOUSE H.398
2025 Page3of65
(11)“Maturitydate,”asusedinsubchapter2ofthischapter,meansthe
dateuponwhichthenoteorotherevidenceofindebtednesssecuredbya
mortgagewouldbeextinguishedifpaidinaccordancewiththemortgage
payments.[Repealed.]
(12)“Mortgage,”asusedinsubchapter2ofthischapter,meansafirst
mortgageuponaneligiblefacilitygivenbyamortgagor,ashereindefined,to
securetherepaymentofamountsborrowedtopaycostsofaproject.
[Repealed.]
(13)“Mortgagepayments,”asusedinsubchapter2ofthischapter,
meanstheperiodicpaymentscalledforbyamortgagethatshallcoverlease
landrentals,ifany,mortgageinsurancepremiums,interest,installmentsof
principal,taxesandassessments,hazardinsurancepayments,andanyother
paymentscalledforinthemortgage.[Repealed.]
(14)“Mortgagee,”asusedinsubchapter2ofthischapter,meansthe
originallenderunderamortgageanditssuccessorsandassigns,ifapprovedby
theAuthority.[Repealed.]
(15)“Mortgagor,”asusedinsubchapter2ofthischapter,meansthe
originalborrowerunderamortgageorasecurityagreementanditssuccessors
andassigns,ifapprovedbytheAuthority.[Repealed.]
***
§213.AUTHORITY;ORGANIZATION
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page4of65
***
(c)TheAuthorityshallelectachairfromamongitsappointedmembers,
andavicechairandtreasurerfromamongitsmembersorstaffandshall
employamanagerwhoshallholdofficeattheAuthority’spleasureandwho,
unlessheorshetheindividualisamemberoftheclassifiedserviceunder3
V.S.A.chapter13,shallreceivesuchcompensationasmaybefixedbythe
AuthoritywiththeapprovaloftheGovernor.Aquorumshallconsistofeight
members.Membersdisqualifiedfromvotingundersection214ofthistitle
shallbeconsideredpresentforpurposesofdeterminingaquorum.Noaction
oftheAuthorityshallbeconsideredvalidunlesstheactionissupportedbya
majorityvoteofthememberspresentandvotingandthenonlyifatleastfive
membersvoteinfavoroftheaction.
***
(i)TheAuthorityshallstudyandreportbacktotheLegislaturenolater
thanJanuary15,1989onthefeasibilityofhiringfull-timecounselinlieuof
retainingoutsidecounsel.[Repealed.]
§214.MEMBERS;DISQUALIFICATION
AmemberoftheAuthoritymaynotparticipateinanydecision:
***
(2)Uponanyinsurancecontractundersubchapter2ofthischapteror
loanundersubchapter5ofthischapter,ifthememberisamember,director,
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page5of65
trustee,employee,orofficerof;orhasanyinterestdirectorindirectin;or
ownsanystock,bonds,orotherliabilitiesissuedbyorauthorizedbythe
prospectivemortgagor,mortgagee,ortenant;
***
§215.MANAGER;DUTIES
ThemanagershallbethechiefadministrativeofficeroftheAuthorityand
shalldirectandsupervisetheadministrativeaffairsandtechnicalactivitiesof
theAuthorityinaccordancewithanyrules,regulations,andpoliciessetforth
bytheAuthority.Inadditiontoanyotherduties,themanagershall:
***
(4)workcloselywiththeAgencyofCommerceandCommunity
DevelopmentandprovideassistancetothevariousdivisionsofthatAgency
whenrequestedtofacilitatetheplanningandfinancingofprojects;
(5)makerecommendationsandreports,incooperationwiththeAgency
ofCommerceandCommunityDevelopment,totheAuthorityonthemeritsof
anyproposedproject,onthestatusoflocaldevelopmentcorporations,andon
suitableindustrialsites;[Repealed.]
(6)performsuchotherdutiesasmaybedirectedbytheAuthorityinthe
carryingoutofthepurposesofthischapter.
§216.AUTHORITY;GENERALPOWERS
TheAuthorityisherebyauthorized:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page6of65
(1)Tosueandbesuedinitsownnameandpleadandbeimpleaded;
serviceofprocessuponitinanyactionshallbemadebyserviceuponthe
SecretaryofStateeitherinhandorbyleavingacopyoftheprocessathisor
hertheSecretary’soffice.
***
(3)Toadoptandfromtimetotimeamendbylaws,andrules,and
regulationsforthecallingandconductofitsmeetingsandfortheconductof
itsaffairs,includingregulationsrulesrelatingtoapplicationsforfinancial
assistanceanddisclosureofinformationsuppliedtoit.
***
(6)Toemploysuchemployees,whomaybeintheclassifiedsystem
under3V.S.A.chapter13withinthediscretionoftheAuthority,andto
employorcontractwithagents,consultants,legaladvisors,andotherexperts,
asmaybenecessaryordesirableforitspurposes,todeterminethe
qualifications,duties,andcompensationofsuchemployees,agents,
consultants,legaladvisors,andexpertsandtoutilizetheservicesofother
governmentalagenciesanddepartments.
***
(9)Tomakesuchchargesagainstlocaldevelopmentcorporationsas
maybemutuallyagreedupontoassistinmeetingtheexpensesofthe
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 BILLASPASSEDBYTHEHOUSE H.398
2025 Page7of65
Authorityincurredunderthischapter,includinganyinterestchargedbythe
StateTreasurer.
(10)Toadministeritsownfundsandtoinvestordepositfundswhich
thatarenotneededcurrentlytomeettheobligationsoftheAuthority.
***
(13)TocausetobeincorporatedinVermontanonprofitcorporationthat
willqualifyasaStatedevelopmentcompanyunderTitle15oftheU.S.Code
15U.S.C.§695andrulesandregulationsadoptedpromulgatedpursuant
thereto.ThevotingmembersoftheAuthorityshallbemembersofthe
companyandshallconstitutetheboardofdirectorsofthecompany.The
companyshallhaveatleast14othermembersselectedbythemembersofthe
Authority.Thecompanyshallbeorganizedandoperateunderthenonprofit
corporationlawsoftheStateofVermonttotheextentnotinconsistent
herewith.TheAuthorityshallhavethepowertocontractwiththecompanyto
providestaffandmanagementneedsofthecompany.TheAuthorityis
authorizedtocontributetothecapitalofthecompanyinanamountthe
Authoritydeterminesisnecessaryandappropriate.
***
(15)Todelegatetoloanofficersthepowertoreview,approve,and
makeloansunderthischapter,subjecttotheapprovalofthemanager,andto
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 BILLASPASSEDBYTHEHOUSE H.398
2025 Page8of65
disbursefundsonsuchloans,subjecttotheapprovalofthemanagerasset
forthinthepoliciesandproceduresoftheAuthority.
***
§217.RECORDS;ANNUALREPORT;AUDIT
(a)TheAuthorityshallkeepanaccurateaccountofallitsactivitiesandof
allitsreceiptsandexpenditures.Informationandrecordsinconnectionwith
anapplicationforaninsurancecontractundersubchapter2ofthischapter
shallbepreservedforthreeyearsaftertheapplicationhasbeendeniedor,if
theapplicationisaccepted,forthreeyearsafterthemortgagehasbeen
dischargedandthereafteruntiltheAuthorityordersthemdestroyed.
***
(c)TheAuditorofAccountsoftheStateandhisorhertheAuditor’s
authorizedrepresentativesmayatanytimeexaminetheaccountsandbooksof
theAuthority,includingitsreceipts,disbursements,contracts,funds,
investments,andanyothermattersrelatingtoitsfinancialstatements.
***
§217a.APPLICATION
AmongsuchotherthingsasmayberequiredbytheAuthority,any
applicationforfinancingorformortgageinsuranceunderthischaptershall
stateindetailontheapplicationthenatureandpurposeofthebusinessandits
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 BILLASPASSEDBYTHEHOUSE H.398
2025 Page9of65
productsforwhichtheloan,orrevenuebondsormortgageinsuranceisare
intendedtobenefit.
***
§231.ASSISTANCETOLOCALDEVELOPMENT CORPORATIONS
Uponapplicationofalocaldevelopmentcorporation,theAuthoritymay
loanmoneytothatlocaldevelopmentcorporation,uponsuchtermsand
conditionsasitmayprescribe,forthepurposeofindustrialparkplanningand
development,forconstructingorimprovingaspeculativebuildingorsmall
businessincubatorfacilityonlandownedorheldunderleasebythelocal
developmentcorporation,forpurchaseorimprovementofexistingbuildings
suitablefororwhichcanbemadesuitableforindustrialorsmallbusiness
incubationfacilitypurposesandforthepurchaseoflandinconnectionwith
anyoftheforegoing.Beforethelocaldevelopmentcorporationreceivessuch
fundsforsuchpurposesfromtheAuthority,itshallgivetotheAuthority
securityfortherepaymentofthefunds.Thesecurityshallbeinsuchformand
amountsastheAuthoritymaydetermineandshall,ineachinstance,includea
firstmortgageontheland,ortheleasehold,building,andappurtenances
financedbysuchfunds.LoansbytheAuthoritytolocaldevelopment
corporationsfortheconstructionofspeculativebuildingsorimprovementsto
thosebuildingsshallberepaidinfull,includinginterestandothercharges,
within90daysafterthebuildingisoccupiedifthebuildingisbeingsold,or
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page10of65
withinfiveyearsafterthepropertyisoccupiedifthebuildingisbeingleased,
orwithinsuchperiodoftimedeemedreasonablebytheAuthority.Loansby
theAuthoritytolocaldevelopmentcorporationsfortheconstruction,purchase,
orimprovementofsmallbusinessincubatorfacilitiesshallberepaidinfull,
includinginterestandothercharges,withinten20yearsafterthepropertyis
occupied.
***
§244.BONDS
***
(b)Bondsshallbearthemanualordigitalsignatureofthetreasurerofthe
municipalityandthemanual,digital,orfacsimilesignatureorsignaturesofthe
mayororamajorityoftheselectboardortrusteesasthecasemaybe.Interest
coupons,ifany,shallbearthefacsimilesignatureofthetreasurer.Ifthe
municipalityhasacorporateseal,bondsshallbearthesealorafacsimileofthe
seal.Bondsexecutedinaccordancewiththissubchaptershallbevalid
notwithstandingthatbeforethedeliverythereofandpaymentthereforanyor
allofthepersonswhosesignaturesappearthereonshallhaveceasedtohold
office.
***
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19 BILLASPASSEDBYTHEHOUSE H.398
2025 Page11of65
§253.STATEAUTHORITYPROJECTS
(a)TheStateofVermontAuthoritymayengageinprojectswithinthestate
inaccordancewiththeprovisionsofthissubchapter.Forthepurposesofthis
sectionandsection254ofthistitle:
(1)Theword“municipality”asusedinthesectionsofthissubchapter
otherthanthissectionshallmeanthe“StateofVermont”“Authority”;
***
(b)Forthepurposesofengaginginaproject,theAuthorityshallactinthe
nameoftheStateandonitsbehalfoftheStateasitsagentandinstrumentality
fortheexecutionoffinancingdocuments,securitydocuments,bonds,and
otherappropriateinstrumentsorforthetakingofanyactionwithrespecttoa
projectfinancedinwholeorinpartbytheissueofbondsundersection254of
thistitle.
(c)Titletoorpossessoryinterestinanyeligiblefacilitythatisfinancedin
wholeorinpartbytheissueofbondspursuanttosection254ofthistitlemay
betakenandheldinthenameoftheStateAuthority.Inperformingits
functionsunderthissection,theAuthoritymayexerciseanyandallpowers
conferreduponmunicipalitiesbythissubchapter,buttheAuthorityshallnot
executeanyfinancingdocument,securitydocument,orbondwithrespecttoa
projectuntiltheAuthorityhasmadethefindingsrequiredbysection246of
thistitle.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page12of65
(d)TheAuthorityshallestablishguidelinesforthetypeandlocationof
projectsthatshallbeconsideredinevaluatingapplicationsforfinancingunder
thissubchapter.Theseguidelinesshallbeusedtoprioritizeprojectsandshall
includefactorssuchasthenumberofpermanentjobscreatedorretained;the
wageratesofthejobscreated;theavailabilityandsuitabilityofprivatemarket
financing;theemploymentmultipliereffect;thepotentialforalleviating
unemploymentindistressedareas;thepotentialeffectontherevitalizationof
depressedcommercialareas;thepotentialtostimulatemarketsforrecycled
materialstobeusedasrawmaterials;whethertheprojectislocatedinthejob
developmentzoneasdesignatedunderchapter29,subchapter2ofthistitle;
andapotentialforincreasingcapitalinvestment.Intheconsiderationof
nonmanufacturingprojects,priorityshallbegiventothoseprojectslocated
withinareassufferingfromthelossofcommercialorserviceenterprises,loss
ofcommercialorservicesales,buildingswithlargevacancyrates,or
physicallydeterioratingstructures.
§254.STATEBONDS
***
(c)Bondsissuedunderthissectionshallbearthemanual,digital,or
facsimilesignatureofthemanagerortreasureroftheAuthorityandthe
manualorfacsimilesignatureoftheChairorViceChairoftheAuthority,or
authorizeddesigneeandagent;provided,however,thatatleastoneofthe
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page13of65
foregoingsuchsignaturesshallbemanualunlessthebondsaretobemanually
authenticatedbyabankortrustcompanyservingastrusteeforthebonds.The
detailsofthebondsshallbefixedbythesigningofficersinaccordancewith
section244ofthistitle.Bondsshallbesoldbythesigningofficersatpublic
orprivatesale,andtheproceedsthereofshallbepaidtothetrustee,lender,or
disbursingagentunderthesecuritydocumentthatsecuresthebonds.
(d)Nofinancingorsecuritydocument,orbond,orotherinstrumentissued
orenteredintointhenameandonbehalfoftheStateunderthissubchapter
shallinanywayobligatetheStatetoraiseanymoneybytaxationoruseother
fundsforanypurposetopayanydebtormeetanyfinancialobligationtoany
personatanytimeinrelationtoaneligiblefacilityfinancedinwholeorinpart
bytheissueoftheAuthority’sbondsunderthissubchapter,exceptfrom
moniesreceivedortobereceivedunderafinancingorsecuritydocument
enteredintounderthissubchapterorexceptasmayberequiredbyanyother
provisionoflaw.Notwithstandingtheprovisionsofthissubsection,theState
mayacceptandexpendwithrespecttoaneligiblefacilityanygiftsorgrants
receivedfromanysourceinaccordancewiththetermsofthegiftsorgrants.
***
(f)BondsmaybeissuedbytheAuthorityunderthissubchapterforthe
purposeofmakingloanstolocaldevelopmentcorporationsforindustrialpark
planninganddevelopment,constructing,orimprovingaspeculativebuilding
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page14of65
orsmallbusinessincubatorfacilityonlandownedorheldunderleasebythe
localdevelopmentcorporation,purchaseorimprovementofexistingbuildings
suitableorthatcanbemadesuitableforindustrialorbusinessincubation
purposes,andpurchaseoflandinconnectionwithanyoftheforegoing.
(1)Beforeissuingbondsforconstructionofaspeculativebuildingor
smallbusinessincubatorfacilityandthepurchaseoflandinconnection
therewith,theAuthorityshallmakethedeterminationsandincorporateinits
minutesthefindingsthat:
(A)theprojectiswithinthescopeofthischapter,willbeofpublic
useandbenefit,andmayreasonablybeexpectedtocreatenewemployment
opportunities;
(B)theproposedsiteforthespeculativebuildingorsmallbusiness
incubatorfacilitywillbelocatedonadequatelandownedortobeacquiredby
thelocaldevelopmentcorporationorleasedbythelocaldevelopment
corporationontermssatisfactorytotheAuthority;
(C)anadequateaccessroadfromapublichighwayisprovidedtothe
proposedsiteandthatsuchutilitiesaswater,sewer,andpowerfacilitiesare
available,orwillbeavailablewhenthespeculativebuildingorsmallbusiness
incubatorfacilityiscompleted;
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19 BILLASPASSEDBYTHEHOUSE H.398
2025 Page15of65
(D)theprojectplanscomplywithallapplicableenvironmental,
zoning,planning,andsanitarylawsandregulationsofthemunicipalitywhere
itistobelocatedandoftheStateofVermont;
(E)thelocaldevelopmentcorporationisresponsibleandhas
presentedevidencetodemonstrateitsabilitytocarryouttheprojectas
planned;
(F)evidencehasbeenpresenteddemonstratingthefeasibilityofthe
siteasalocationforbusiness,andadditionalevidencehasbeenpresentedthat
anadequatesupplyoflaborisavailablewithinthelabormarketareatoservea
businesslocatedonthesite;
(G)thelocaldevelopmentcorporationhasmadeadequateprovisions
forinsuranceprotectionofthebuildingwhileitisunoccupiedandsuitable
arrangementshavebeenmadeforfireprotectionandmaintenancewhileitis
unoccupied;
(H)theprojectwillbewithoutunreasonableriskoflosstothe
Authority,andthelocaldevelopmentcorporationisunabletosecureon
reasonabletermsthefundsrequiredfortheprojectwithouttheassistanceof
theAuthority;
(I)thefinancingandsecuritydocumentscontainprovisionssuchthat
undernocircumstancesistheStateobligateddirectlyorindirectlytopay
projectcosts;debtservice;orexpensesofoperation,maintenance,andupkeep
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page16of65
ofthefacilityexceptfrombondproceedsorfromfundsreceivedunderthe
financingorsecuritydocuments,exclusiveoffundsreceivedthereunderbythe
Stateforitsownuse;
(J)neitherthefinancingdocumentnorthesecuritydocument
purportstocreateanydebtoftheStatewithrespecttotheeligiblefacility,
otherthanaspecialobligationoftheStateunderthischapterrequiredby
section232ofthistitle.
(2)Beforeissuingbondsforindustrialparkplanninganddevelopment
andthepurchaseoflandinconnectiontherewith,theAuthorityshallmakethe
determinationsandincorporateinitsminutesthefindingsthat:
(A)theproposedindustrialparkisonadequatelandownedortobe
ownedbythelocaldevelopmentcorporationorleasedbythelocal
developmentcorporationontermssatisfactorytotheAuthority;
(B)anadequateaccessroadfromapublichighwayisprovidedtothe
proposedsite,andutilities,includingwater,sewer,andpowerfacilities,are
availableorwillbeavailableforanyfuturetenantlocatedinthepark;
(C)thetotalindustrialparkwillbeplannedbyarchitectsand
engineersacceptabletotheAuthority;
(D)nomorethan80percentofthefairmarketvalueoftheindustrial
park,asshownbyappraisalbyanappraiseracceptabletotheAuthority,isto
befinancedundertheloan;
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page17of65
(E)theparkprojectiswithinthescopeofthischapter,willbeof
publicuseandbenefit,andmayreasonablybeexpectedtocreatenew
employmentopportunities;
(F)theparkprojectcomplieswithallapplicableenvironmental,
zoning,planning,andsanitarylawsandregulationsofthemunicipalityin
whichitistobelocatedandoftheStateofVermont;
(G)thelocaldevelopmentcorporationisresponsibleandhas
presentedevidencetodemonstrateitsabilitytocarryouttheparkprojectas
planned;
(H)evidencehasbeenpresenteddemonstratingthefeasibilityofthe
siteasalocationforindustry,andadditionalevidencehasbeenpresentedthat
anadequatesupplyoflaborisavailablewithinthelabormarketareatoserve
anindustrylocatedonthesite;
(I)theparkprojectwillbewithoutunreasonableriskoflosstothe
Authority,andthelocaldevelopmentcorporationisunabletosecureon
reasonabletermsthefundsrequiredfortheprojectwithouttheassistanceof
theAuthority;
(J)thefinancingandsecuritydocumentscontainprovisionssuchthat
undernocircumstancesistheStateobligateddirectlyorindirectlytopay
projectcosts;debtservice;orexpensesofoperation,maintenance,andupkeep
ofthefacilityexceptfrombondproceedsorfromfundsreceivedunderthe
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page18of65
financingorsecuritydocuments,exclusiveoffundsreceivedthereunderbythe
Stateforitsownuse;
(K)neitherthefinancingdocumentnorthesecuritydocument
purportstocreateanydebtoftheStatewithrespecttotheeligiblefacility,
otherthanaspecialobligationoftheStateunderthischapterrequiredby
section237ofthistitle.
(3)AlldeterminationsandfindingsmadebytheAuthoritypursuantto
thissectionshallbeconclusiveFinancingandsecuritydocumentsshallcontain
provisionssuchthatundernocircumstancesistheStateobligateddirectlyor
indirectlytopayprojectcosts;debtservice;orexpensesofoperation,
maintenance,andupkeepofthefacilityexceptfrombondproceedsorfrom
fundsreceivedunderthefinancingorsecuritydocuments,exclusiveoffunds
receivedthereunderbytheStateforitsownuse.
(4)Financingandsecuritydocumentsshallnotcreateanydebtofthe
Statewithrespecttotheeligiblefacility,otherthanaspecialobligationofthe
Stateunderthischapter.
(g)BondsissuedbytheAuthorityunderthissubchaptermaybesecured,in
wholeorinpart,bymortgageinsuranceundersubchapter2ofthischapter
uponthetermsandconditionssetforthinsubchapter2andinthissubsection.
Suchinsurancemaybeintheformofreinsuranceormaybeforthepurposeof
creatingaloanlossreserve,inacasewherethebondsarealsosecuredbythe
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page19of65
mortgageinsurancefromanothersource.Theprincipalamountofbondsso
securedoutstandingatanytimewithrespecttofacilitiesofanyoneuser,or
anyrelatedperson,inanyonemunicipality,shallnotexceed$2,500,000.00.
Forpurposesofthissubsection,theterm“mortgagee”asusedinsubchapter2
ofthischaptershallmeanthepurchasersofthebonds,orwhereappropriate
thetrusteeunderthesecuritydocument;themortgagepaymentstobeinsured
shallbethoserequiredtobemadebytheuserunderthefinancingdocument;
andbondproceeds,insteadofbeingusedtopayprojectcostsdirectly,maybe
usedtopurchaseparticipationinloansoriginatedbylocalbanksorother
responsiblefinancialinstitutionswheretheproceedsofsuchloanshavebeen
usedtopayprojectcosts.Inauthorizingmortgageinsurancetosecurebonds,
theAuthorityshallmakeallofthefindingsanddeterminationssetforthin
subsection221(a)ofthistitle,exceptthattheprincipalofthemortgagecannot
exceed$2,500,000.00.Inauthorizinganybondsthataretobesecuredby
mortgageinsurance,theAuthorityshallmakeallofthefindingsand
determinationssetforthinsection246ofthistitle,andmaymakethefindings
setforthinsubdivisions246(5)and(7)ofthistitle,notwithstandingthefact
thatthemortgageinsurancewillcreateacontingentliabilityoftheAuthority.
Thecreationofsuchcontingentliabilityshallnotbedeemedtoviolatethe
prohibitioncontainedinsubsection(d),andthestatementrequiredoneach
bondthatitdoesnotconstituteanindebtednessoftheStatemaybemodified
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page20of65
torefertothemortgageinsurance.Separateseriesofbondsallofwhichare
securedbymortgageinsurancemaybecombinedpursuanttosubsection(e)of
thissection,andtheproceedsofanypaymentofsuchmortgageinsurancemay
beallocatedandappliedbythetrusteeforthebenefitofthebondholdersin
accordancewiththetermsofthesecuritydocumentprovidingforthe
combinedfinancingAlldeterminationsandfindingsmadebytheAuthority
pursuanttothissectionshallbeconclusive.
(h)TheAuthorityisauthorizedtopledgesecurityandtoenterinto
security,insurance,orotherformsofcreditenhancement.Apledgeinany
agreementshallbevalidandbindingfromthetimesuchpledgeshallbemade
withoutanyphysicaldeliveryorfurtheract,andthelienofsuchpledgeshall
bevalidandbindingasagainstallpartieshavingclaimsofanykindintort,
contract,orotherwise,irrespectiveofwhethersuchpartieshavenoticethereof.
Anysuchpledgeshallbeperfectedbyfilingoftheagreementintherecordsof
theAuthorityandnfilingneedbemadeunderanyotherprovisionoflaw.
(i)TheAuthoritymaypurchaseanybondissuedunderthissubchapter4.
Subjecttothetermsofanyagreementwiththebondholders,theAuthority
mayhold,pledge,resell,orcancelanybondpurchasedunderthisparagraph,
exceptthatapurchaseunderthisparagraphshallnotcausetheextinguishment
ofsuchbondunlesstheAuthoritycancelsthebondorotherwisecertifiesits
intentionthatthebondbeextinguished.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page21of65
(j)Nodesignatedmember,director,officer,employee,oragentofthe
Authorityshallbeliablepersonallyonthebondsoranycontractenteredinto
bytheAuthorityorsubjecttoanypersonalliabilityoraccountabilitybyreason
oftheissuanceofthebondsunlessthepersonalliabilityoraccountabilityis
theresultofintentionalmisconduct.
Subchapter5.DirectMortgageLoans
§261.ADDITIONALPOWERS
Inadditiontopowersenumeratedelsewhereinthischapter,theAuthority
may:
(1)Makeloanssecuredbymortgagesorotherassets,whichmaybe
subordinatetooneormorepriormortgagesorliens,uponapplicationbythe
proposedmortgagorobligor,whomaybeaprivatecorporation,nonprofit
organization,partnership,person,ormunicipalityfinancinganeligibleproject
describedinsubdivision212(6)ofthistitle,uponsuchtermsastheAuthority
mayprescribe,forthepurposeoffinancingtheestablishmentorexpansionof
eligiblefacilities.SuchloansshallbemadefromtheVermontJobsFund
establishedundersubchapter3ofthischapter.TheAuthoritymayprovidefor
therepaymentandredepositofsuchloansasprovidedinthissubchapter.
***
(3)Purchasepriormortgagessecuredloansandmakepaymentsonprior
mortgagessecuredloansonanyeligiblefacilitywherethepurchaseor
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page22of65
paymentisnecessarytoprotectanyloanpreviouslymadebytheAuthority.In
addition,theAuthoritymaysell,transfer,convey,andassignanysuchprior
mortgageorsecurity.MoniesusedbytheAuthorityinthepurchaseofany
priormortgagesmortgageorsecurity,oranypaymentsthereon,shallbe
withdrawnfromtheVermontJobsFund,andanymoniesderivedfromthesale
ofanypriormortgagesmortgageorsecurityshallbedepositedbythe
AuthorityintheVermontJobsFund.
***
§262.FINDINGS
Beforemakinganyloan,theAuthorityshallreceivefromanapplicanta
loanapplicationinsuchformastheAuthoritymaybyregulationrule
prescribe,andtheAuthority,ortheAuthority’sloanofficerpursuanttothe
provisionsofsubdivision216(15)ofthistitle,shalldetermineandincorporate
findingsinitsminutesthat:
(1)Theprojectiswithinthescopeofthischapterandwillincreaseor
maintainemploymentandexpandtheeconomyoftheState.
(2)Theprojectplanscomplywithallapplicableenvironmental,zoning,
planning,andsanitarylawsandregulationsofthemunicipalitywhereitisto
belocatedandoftheStateofVermont.
***
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 BILLASPASSEDBYTHEHOUSE H.398
2025 Page23of65
(5)TheprincipalobligationoftheAuthority’smortgagedoesnot
exceed$5,000,000.00,whichmaybesecuredbylandandbuildingsorby
machineryandequipment,orboth,unless:
(A)anintegralelementoftheprojectconsistsofthegenerationof
heatorelectricityemployingbiomass,geothermal,methane,solar,orwind
energyresourcestobeprimarilyconsumedattheproject,inwhichcasethe
principalobligationoftheAuthority’smortgagedoesnotexceed
$6,000,000.00,whichmaybesecuredbylandandbybuildingsormachinery
andequipment,orboth;suchprincipalobligationdoesnotexceed40percent
ofthecostoftheproject;andthemortgagorobligorisabletoobtainfinancing
forthebalanceofthecostoftheprojectfromothersourcesasprovidedinthe
followingsection;or
***
(6)Themortgagorobligorisresponsibleandabletomanageits
responsibilitiesasmortgagorobligorandowneroftheproject.
(7)Themortgageloanhasasatisfactorymaturitydate,innocaselater
than20yearsfromthedateofthemortgage.
(8)Themortgagorobligorisunabletofinancetheprojectupon
reasonabletermswithouttheassistanceoftherequestedloanfromthe
Authority,orinthealternative,thegrantingoftheloanwillserveasa
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 BILLASPASSEDBYTHEHOUSE H.398
2025 Page24of65
substantialinducementfortheestablishmentorexpansionofaneligible
projectwithintheState.
(9)Themortgagorobligorhasmadeadequateprovisionforinsurance
protectionoftheprojectwhiletheloanisoutstanding.
***
§263.MORTGAGELOAN;LIMITATIONS
(a)WhenithasbeendeterminedbytheAuthoritythattheestablishmentor
expansionofaparticulareligiblefacilitywillaccomplishthepublicpurposes
ofthisact,theAuthoritymaycontracttoloantothemortgagorobligoran
amountnotinexcessof40percentofthecostofsucheligiblefacility.In
addition,theAuthorityshallhavedeterminedthatthemortgagorobligorhas
obtainedfromotherindependentandresponsiblesources,suchasbanksand
insurancecompaniesfinancialinstitutionsorotherwise,afirmcommitmentfor
allotherfunds,overandabovetheloanoftheAuthorityandsuchfundsor
propertyasthelocaldevelopmentcorporationmayhold,necessaryfor
paymentofallofthecostoftheproject,andthatthesumofallthesefunds,
togetherwithanyfunds,machinery,andequipmenttobeprovidedbythe
mortgagorobligorisadequateforthecompletionandoperationoftheproject.
(b)AnyloanoftheAuthorityunderthissubchaptershallbeforaperiodof
timeandshallbearinterestatsuchrateasdeterminedbytheAuthorityand
shallbesecuredbyamortgageontheeligiblefacilityoralienonitsassetsfor
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page25of65
whichtheloanwasmadeorupontheassetsofamunicipalcommunications
plant,includingthenetrevenuesderivedfromtheoperationthereof,orboth.
Themortgagesecuredloanmaybesubordinatetooneormorepriormortgages
loans,includingthemortgagelienssecuringtheobligationissuedtosecurethe
commitmentoffundsfromtheindependentandresponsiblesourcesandused
inthefinancingoftheeconomicdevelopmentproject.Moniesloanedbythe
AuthorityshallbewithdrawnfromtheVermontJobsFundandpaidovertothe
mortgagorobligorinsuchmannerasprovidedandprescribedbytherulesand
regulationsoftheAuthority.Allpaymentsofprincipalandinterestonthe
loansshallbedepositedbytheAuthorityintheVermontJobsFund.
(c)LoansbytheAuthorityforaneligiblefacilityunderthissubchapter
shallbemadeonlyinthemannerandtotheextentprovidedinthissection,
except,however,inthoseinstanceswhereanagencyofthefederalgovernment
participatesinthefinancingofaneligiblefacilitybyloan,grant,orotherwise.
Whenanyfederalagencyparticipates,theAuthoritymayadjusttherequired
ratiooffinancialparticipationbythelocaldevelopmentcorporation,
independentsourcesoffunds,andtheAuthorityinsuchmannerastoensure
themaximumbenefitavailablebytheparticipationofthefederalagency.
Whereanyfederalagencyparticipatinginthefinancingofaneligiblefacility
isnotpermittedtotakeassecurityamortgage,thelienofwhichisjuniorto
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20 BILLASPASSEDBYTHEHOUSE H.398
2025 Page26of65
themortgageoftheAuthority,theAuthorityshallbeauthorizedtotakeas
securityforitsloanamortgagejuniorinlientothatofthefederalagency.
***
§264.ACCELERATEDREPAYMENTPROVISIONS
AnydirectmortgageloanmadeonorafterJuly1,1988underthis
subchaptershallbeconditioneduponthemaintenanceofareasonablelevelof
employmentatthefacilityorfacilitiesownedbythemortgagorobligorand
pledgedassecurityfortheloan.Forthepurposesofthissection,areasonable
levelofemploymentshallbedeemednottohavebeenmaintainedwhenevera
mortgagoranobligoremploying50ormoreemployeesatsuchfacilityor
facilitiespermanentlytransfers,withinanythree-yearperiod,50percentor
moreofthoseemployeesoremploymentpositionstoanyout-of-statefacility.
Uponbreachofthiscondition,theAuthoritymaydeclareallprincipaland
interestofthemortgageloanimmediatelydueandpayableandmay
commenceforeclosureonanypropertyheldassecurityforthemortgageloan
ortakeanyotherlawfulstepstoobtainpayment.
***
§279c.VERMONTEXPORTFINANCEPROGRAM
***
(e)Anyexcessofrevenuesoverexpensesderivedfromthisprogramshall
bedepositedinthedevelopmentfundVermontJobsFund.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page27of65
***
§280a.ELIGIBLEPROJECTS;AUTHORIZEDFINANCINGPROGRAMS
(a)TheAuthoritymaydevelop,modify,andimplementanyexistingor
newfinancingprogram,providedthatanyspecificprojectthatbenefitsfrom
suchprogramshallmeetthecriteriacontainedintheVermontSustainableJobs
Strategyadoptedundersection280bofthistitle,andprovidedfurtherthatthe
programshallmeetthecriteriacontainedintheVermontSustainableJobs
Strategyadoptedundersection280bofthistitle.Theseprogramsmay
include:
(1)theMortgageInsuranceProgram,administeredunderchapter12,
subchapter2ofthistitle;[Repealed.]
***
(7)oneormoreprogramstargetingeconomicallydistressedregionsof
theState,andspecificallyincludingtheAuthoritytodevelopaprogramto
financeorrefinanceupto100percentoftheexistingassetsordebtsofa
health,recreation,andfitnessorganizationthatisexemptunderSection
501(c)(3)oftheInternalRevenueCode,theincomeofwhichisentirelyused
foritsexemptpurpose,thatownsandoperatesarecreationfacilitylocatedina
distressedregionoftheState;[Repealed.]
***
§280b.THEVERMONTSUSTAINABLEJOBSSTRATEGY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page28of65
***
(c)(1)BeforeadoptingtheVermontsustainablejobsstrategy,theGovernor
shalldirecttheAuthorityandtheSecretaryofCommerceandCommunity
Developmenttosolicitinformationandrecommendationsfromthepeopleand
businessesoftheState.
(2)Aftersolicitinginformationandrecommendations,theAuthority
andtheSecretaryshalljointlydevelopaproposedVermontsustainablejobs
strategy.Indevelopingaproposedstrategy,theAuthorityandtheSecretary
shallconsiderhowbesttointegrateVermont’seconomic,social,and
environmentalvaluesintoaVermontsustainablejobsstrategy.TheAuthority
andtheSecretaryshalljointlypresenttheirproposedstrategytotheHouse
CommitteeonCommerceandEconomicDevelopmentandtheSenate
CommitteeonEconomicDevelopment,HousingandGeneralAffairsmeeting
injointhearing.
***
Subchapter15.DisasterRecoveryLoanFund
§ 280gg.DISASTERRECOVERYLOANFUND
(a)ThereisestablishedwithintheAuthoritytheVermontDisaster
RecoveryLoanFund,referredtointhissubchapteras“theFund,”thepurpose
ofwhichistoenabletheAuthoritytoprovideloansandotherformsof
financialassistancetobusinessesandagriculturalenterprisesafterdisasters.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page29of65
(b)TheAuthorityshallestablish:
(1)policiesandproceduresfortheFundthattheAuthoritydetermines
arenecessarytocarryoutthepurposesofthissubchapter;and
(2)financingprogramsnecessarytoensuretimelydeliveryoffinancial
assistanceafteradisaster.
(c)TheAuthorityshalllimittheinterestrateschargedforloansprovided
utilizingfundsfromtheDisasterRecoveryLoanFundtoratesnecessaryto
coverthecostsofadministeringtheFund.
(d)Thisisarevolvingloanprogramandanyexcessofrevenuesover
expensesderivedfromthisprogramshallbedepositedintheFund.
Sec.2.10V.S.A.§ 234isredesignatedandamendedtoread:
§234220a.THEVERMONTJOBSFUND
(a)ThereisherebycreatedtheVermontJobsFund,hereinaftercalledthe
Fund,whichshallbeusedbytheAuthorityasanonlapsingfundforthe
purposesofsubchapters3,5,9,and10ofthischapter.Toitshallbecharged
alloperatingexpensesoftheAuthoritynototherwiseprovidedforandall
paymentsofinterestandprincipalrequiredtobemadebytheAuthorityunder
thissubchapter.ToitshallbecreditedanyappropriationsmadebytheGeneral
Assemblyforthepurposesofsubchapters3,5,9,and10ofthischapterandall
paymentsrequiredtobemadetotheAuthorityundersubchapters3,5,9,and
10ofthischapter,itbeingtheintentofthissectionthattheFundshalloperate
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page30of65
asarevolvingfundwherebyallappropriationsandpaymentsmadethereto,
unlessrequiredtorepaynotesunderthefollowingsection,maybeappliedand
reappliedforthepurposesofsubchapters3,5,9,and10ofthischapter.
MoniesintheFundmaybeloanedatinterestratestobesetbytheAuthority
forthefollowing:
(1)Loanstolocaldevelopmentcorporationsunderthissubchapter,
providedthatifthefundsforanysuchloanarederivedfromtheissueofnotes
totheStateTreasurerundersection235ofthischapter,theloanshallbear
interestataratenotlessthantherateonthenoteschapter.
(2)Directmortgageloansasdescribedinsubchapter5ofthischapter.
(3)Loansforthefinancingofexportactivitiesundersubchapter9of
thischapter.
(4)OtherloansastheAuthoritymayprescribeundersubchapter10of
thischapter.
(b)InordertoprovidemoniesintheFundforloansunderthischapter,the
AuthoritymayissuenotesforpurchasebytheStateTreasurerasprovidedin
section235ofthischapter.
(c)MoniesintheFundmaybeloanedtotheVermontAgriculturalCredit
Programtosupportitslendingoperationsasestablishedinchapter16Aofthis
titleatinterestratesandontermsandconditionstobesetbytheAuthorityto
establishalineofcreditinanamountnottoexceed$100,000,000.00tobe
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21 BILLASPASSEDBYTHEHOUSE H.398
2025 Page31of65
advancedtotheVermontAgriculturalCreditProgramtosupportitslending
operationsasestablishedinchapter16Aofthistitle.
(d)(c)MoniesintheFundmaybeloanedtotheVermontSmallBusiness
DevelopmentCorporationtosupportitslendingoperationsasestablished
pursuanttosubdivision216(14)ofthistitleatinterestratesandontermsand
conditionstobesetbytheAuthority.
(e)(d)MoniesintheFundmaybeloanedtotheVermont504Corporation
tosupportitslendingoperationsasestablishedpursuanttosubdivision216(13)
ofthistitleatinterestratesandontermsandconditionstobesetbythe
Authority.
(f)(e)TheAuthoritymayloanmoneyfromtheFundtotheVermont
SustainableEnergyLoanFundestablishedundersubchapter13ofthischapter
atinterestratesandontermsandconditionssetbytheAuthority.
Sec.3.APPROPRIATION
Thesumof$2,000,000.00isappropriatedfromtheGeneralFundtothe
AgencyofCommerceandCommunityDevelopmenttofundtheDisaster
RecoveryLoanFundestablishedin10V.S.A.§ 280gg.
Sec.4.EFFECTIVEDATE
ThisactshalltakeeffectonJuly1,2025.
Sec.1.10V.S.A.chapter12isamendedtoread:
CHAPTER12.VERMONTECONOMICDEVELOPMENTAUTHORITY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18 BILLASPASSEDBYTHEHOUSE H.398
2025 Page32of65
***
§212.DEFINITIONS
Asusedinthischapter:
***
(6)“Eligiblefacility”or“eligibleproject”meansanyindustrial,
commercial,oragriculturalenterpriseorendeavorapprovedbytheAuthority
thatmeetsthecriteriaestablishedintheVermontSustainableJobsStrategy
adoptedbytheGovernorundersection280bofthistitleusedinatradeor
businesswhetherornotsuchbusinessisoperatedforprofit,includingland
andrightsinland,air,orwater;buildings;structures;machinery;and
equipmentofsucheligiblefacilitiesoreligibleprojects,exceptthataneligible
facilityorprojectshallnotincludetheportionofanenterpriseorendeavor
relatingtothesaleofgoodsatretailwheresuchgoodsaremanufactured
primarilyoutofState,andexceptfurtherthataneligiblefacilityorproject
shallnotincludetheportionofanenterpriseorendeavorrelatingtohousing
unlessotherwiseauthorizedinthischapter.Suchenterprisesorendeavors
mayinclude:
***
(T)Anycapitalimprovement;purchaseofreceivables,property,
assets,commodities,bonds,orotherrevenuestreamsorrelatedassets;
workingcapitalprogramorliability;orotherinsuranceprogram. BILLASPASSEDBYTHEHOUSE H.398
2025 Page33of65
***
(9)“Insurancecontract”meansacontractinsuringmortgagepayments
undersubchapter2ofthischapter.[Repealed.]
***
(11)“Maturitydate,”asusedinsubchapter2ofthischapter,meansthe
dateuponwhichthenoteorotherevidenceofindebtednesssecuredbya
mortgagewouldbeextinguishedifpaidinaccordancewiththemortgage
payments.[Repealed.]
(12)“Mortgage,”asusedinsubchapter2ofthischapter,meansafirst
mortgageuponaneligiblefacilitygivenbyamortgagor,ashereindefined,to
securetherepaymentofamountsborrowedtopaycostsofaproject.
[Repealed.]
(13)“Mortgagepayments,”asusedinsubchapter2ofthischapter,
meanstheperiodicpaymentscalledforbyamortgagethatshallcoverlease
landrentals,ifany,mortgageinsurancepremiums,interest,installmentsof
principal,taxesandassessments,hazardinsurancepayments,andanyother
paymentscalledforinthemortgage.[Repealed.]
(14)“Mortgagee,”asusedinsubchapter2ofthischapter,meansthe
originallenderunderamortgageanditssuccessorsandassigns,ifapproved
bytheAuthority.[Repealed.] BILLASPASSEDBYTHEHOUSE H.398
2025 Page34of65
(15)“Mortgagor,”asusedinsubchapter2ofthischapter,meansthe
originalborrowerunderamortgageorasecurityagreementanditssuccessors
andassigns,ifapprovedbytheAuthority.[Repealed.]
***
§213.AUTHORITY;ORGANIZATION
***
(c)TheAuthorityshallelectachairfromamongitsappointedmembers,
andavicechairandtreasurerotherofficersfromamongitsmembersandshall
employamanagerwhoshallholdofficeattheAuthority’spleasureandwho,
unlessheorshetheindividualisamemberoftheclassifiedserviceunder3
V.S.A.chapter13,shallreceivesuchcompensationasmaybefixedbythe
AuthoritywiththeapprovaloftheGovernor.Aquorumshallconsistofeight
members.Membersdisqualifiedfromvotingundersection214ofthistitle
shallbeconsideredpresentforpurposesofdeterminingaquorum.Noaction
oftheAuthorityshallbeconsideredvalidunlesstheactionissupportedbya
majorityvoteofthememberspresentandvotingandthenonlyifatleastfive
membersvoteinfavoroftheaction.
***
(i)TheAuthorityshallstudyandreportbacktotheLegislaturenolater
thanJanuary15,1989onthefeasibilityofhiringfull-timecounselinlieuof
retainingoutsidecounsel.[Repealed.] BILLASPASSEDBYTHEHOUSE H.398
2025 Page35of65
§214.MEMBERS;DISQUALIFICATION
AmemberoftheAuthoritymaynotparticipateinanydecision:
***
(2)Uponanyinsurancecontractundersubchapter2ofthischapteror
loanundersubchapter5ofthischapter,ifthememberisamember,director,
trustee,employee,orofficerof;orhasanyinterestdirectorindirectin;or
ownsanystock,bonds,orotherliabilitiesissuedbyorauthorizedbythe
prospectivemortgagor,mortgagee,ortenant;
***
§215.MANAGER;DUTIES
ThemanagershallbethechiefadministrativeofficeroftheAuthorityand
shalldirectandsupervisetheadministrativeaffairsandtechnicalactivitiesof
theAuthorityinaccordancewithanyrules,regulations,andpolicies,and
proceduressetforthbytheAuthority.Inadditiontoanyotherduties,the
managershall:
***
(4)workcloselywiththeAgencyofCommerceandCommunity
DevelopmentandprovideassistancetothevariousdivisionsofthatAgency
whenrequestedtofacilitatetheplanningandfinancingofprojects;and
(5)makerecommendationsandreports,incooperationwiththeAgency
ofCommerceandCommunityDevelopment,totheAuthorityonthemeritsof BILLASPASSEDBYTHEHOUSE H.398
2025 Page36of65
anyproposedproject,onthestatusoflocaldevelopmentcorporations,andon
suitableindustrialsites;[Repealed.]
(6)performsuchotherdutiesasmaybedirectedbytheAuthorityinthe
carryingoutofthepurposesofthischapter.
§216.AUTHORITY;GENERALPOWERS
TheAuthorityisherebyauthorized:
(1)Tosueandbesuedinitsownnameandpleadandbeimpleaded;
serviceofprocessuponitinanyactionshallbemadebyserviceuponthe
SecretaryofStateeitherinhandorbyleavingacopyoftheprocessathisor
hertheSecretary’soffice.
***
(3)Toadoptandfromtimetotimeamendbylaws,andrules,and
regulationsforthecallingandconductofitsmeetingsandfortheconductof
itsaffairs,includingregulationsrules,policies,andproceduresrelatingto
applicationsforfinancialassistanceanddisclosureofinformationsuppliedto
it.
***
(10)Toadministeritsownfundsandtoinvestordepositfundswhich
thatarenotneededcurrentlytomeettheobligationsoftheAuthority.
*** BILLASPASSEDBYTHEHOUSE H.398
2025 Page37of65
(13)TocausetobeincorporatedinVermontanonprofitcorporation
thatwillqualifyasaStatedevelopmentcompanyunderTitle15oftheU.S.
Code15U.S.C.§695andrulesandregulationsadoptedpromulgated
pursuantthereto.ThevotingmembersoftheAuthorityshallbemembersofthe
companyandshallconstitutetheboardofdirectorsofthecompany.The
companyshallhaveatleast14othermembersselectedbythemembersofthe
Authority.Thecompanyshallbeorganizedandoperateunderthenonprofit
corporationlawsoftheStateofVermonttotheextentnotinconsistent
herewith.TheAuthorityshallhavethepowertocontractwiththecompanyto
providestaffandmanagementneedsofthecompany.TheAuthorityis
authorizedtocontributetothecapitalofthecompanyinanamountthe
Authoritydeterminesisnecessaryandappropriate.
***
(15)Todelegatetoloanofficersthepowertoreview,approve,andmake
loansunderthischapter,subjecttotheapprovalofthemanager,andto
disbursefundsonsuchloans,subjecttotheapprovalofthemanagerasset
forthinthepoliciesandproceduresoftheAuthority.
***
§217.RECORDS;ANNUALREPORT;AUDIT
(a)TheAuthorityshallkeepanaccurateaccountofallitsactivitiesandof
allitsreceiptsandexpenditures.Informationandrecordsinconnectionwith BILLASPASSEDBYTHEHOUSE H.398
2025 Page38of65
anapplicationforaninsurancecontractundersubchapter2ofthischapter
shallbepreservedforthreeyearsaftertheapplicationhasbeendeniedor,if
theapplicationisaccepted,forthreeyearsafterthemortgagehasbeen
dischargedandthereafteruntiltheAuthorityordersthemdestroyed.
***
(c)TheAuditorofAccountsoftheStateandhisorhertheAuditor’s
authorizedrepresentativesmayatanytimeexaminetheaccountsandbooksof
theAuthority,includingitsreceipts,disbursements,contracts,funds,
investments,andanyothermattersrelatingtoitsfinancialstatements.
***
§217a.APPLICATION
AmongsuchotherthingsasmayberequiredbytheAuthority,any
applicationforfinancingorformortgageinsuranceunderthischaptershall
stateindetailontheapplicationthenatureandpurposeofthebusinessandits
productsforwhichtheloan,orrevenuebondsormortgageinsuranceisare
intendedtobenefit.
***
§231.ASSISTANCETOLOCALDEVELOPMENTCORPORATIONS
Uponapplicationofalocaldevelopmentcorporation,theAuthoritymay
loanmoneytothatlocaldevelopmentcorporation,uponsuchtermsand
conditionsasitmayprescribe,forthepurposeofindustrialparkplanningand BILLASPASSEDBYTHEHOUSE H.398
2025 Page39of65
development,forconstructingorimprovingaspeculativebuildingorsmall
businessincubatorfacilityonlandownedorheldunderleasebythelocal
developmentcorporation,forpurchaseorimprovementofexistingbuildings
suitablefororwhichcanbemadesuitableforindustrialorsmallbusiness
incubationfacilitypurposesandforthepurchaseoflandinconnectionwith
anyoftheforegoing.Beforethelocaldevelopmentcorporationreceivessuch
fundsforsuchpurposesfromtheAuthority,itshallgivetotheAuthority
securityfortherepaymentofthefunds.Thesecurityshallbeinsuchformand
amountsastheAuthoritymaydetermineandshall,ineachinstance,includea
firstmortgageontheland,ortheleasehold,building,andappurtenances
financedbysuchfunds.LoansbytheAuthoritytolocaldevelopment
corporationsfortheconstructionofspeculativebuildingsorimprovementsto
thosebuildingsshallberepaidinfull,includinginterestandothercharges,
within90daysafterthebuildingisoccupiedifthebuildingisbeingsold,or
withinfiveyearsafterthepropertyisoccupiedifthebuildingisbeingleased,
orwithinsuchperiodoftimedeemedreasonablebytheAuthority.Loansby
theAuthoritytolocaldevelopmentcorporationsfortheconstruction,purchase,
orimprovementofsmallbusinessincubatorfacilitiesshallberepaidinfull,
includinginterestandothercharges,withinten20yearsafterthepropertyis
occupied.
*** BILLASPASSEDBYTHEHOUSE H.398
2025 Page40of65
§244.BONDS
***
(b)Bondsshallbearthemanualorelectronicsignatureofthetreasurerof
themunicipalityandthemanual,electronic,orfacsimilesignatureor
signaturesofthemayororamajorityoftheselectboardortrusteesasthecase
maybe.Interestcoupons,ifany,shallbearthefacsimilesignatureofthe
treasurer.Ifthemunicipalityhasacorporateseal,bondsshallbearthesealor
afacsimileoftheseal.Bondsexecutedinaccordancewiththissubchapter
shallbevalidnotwithstandingthatbeforethedeliverythereofandpayment
thereforanyorallofthepersonswhosesignaturesappearthereonshallhave
ceasedtoholdoffice.
***
§253.STATEAUTHORITYPROJECTS
(a)TheStateofVermontAuthoritymayengageinprojectswithinthestate
Stateinaccordancewiththeprovisionsofthissubchapter.Forthepurposesof
thissectionandsection254ofthistitle:
(1)Theword“municipality”asusedinthesectionsofthissubchapter
otherthanthissectionshallmeanthe“StateofVermont”“Authority”;
***
(b)Forthepurposesofengaginginaproject,theAuthorityshallactinthe
nameoftheStateandonitsbehalfoftheStateasitsagentandinstrumentality BILLASPASSEDBYTHEHOUSE H.398
2025 Page41of65
fortheexecutionoffinancingdocuments,securitydocuments,bonds,andother
appropriateinstrumentsorforthetakingofanyactionwithrespecttoa
projectfinancedinwholeorinpartbytheissueofbondsundersection254of
thistitle.
(c)Titletoorpossessoryinterestinanyeligiblefacilitythatisfinancedin
wholeorinpartbytheissueofbondspursuanttosection254ofthistitlemay
betakenandheldinthenameoftheStateAuthority.Inperformingits
functionsunderthissection,theAuthoritymayexerciseanyandallpowers
conferreduponmunicipalitiesbythissubchapter,buttheAuthorityshallnot
executeanyfinancingdocument,securitydocument,orbondwithrespecttoa
projectuntiltheAuthorityhasmadethefindingsrequiredbysection246ofthis
title.
***
§254.STATEBONDS
***
(c)Bondsissuedunderthissectionshallbearthemanual,electronic,or
facsimilesignatureofthemanagerortreasureroftheAuthorityandthe
manualorfacsimilesignatureoftheChairorViceChairoftheAuthority,or
authorizeddesigneeandagent;provided,however,thatatleastoneofthe
foregoingsuchsignaturesshallbemanualunlessthebondsaretobemanually
authenticatedbyabankortrustcompanyservingastrusteeforthebonds.The BILLASPASSEDBYTHEHOUSE H.398
2025 Page42of65
detailsofthebondsshallbefixedbythesigningofficersinaccordancewith
section244ofthistitle.Bondsshallbesoldbythesigningofficersatpublicor
privatesale,andtheproceedsthereofshallbepaidtothetrustee,lender,or
disbursingagentunderthesecuritydocumentthatsecuresthebonds.
(d)Nofinancingorsecuritydocument,orbond,orotherinstrumentissued
orenteredintointhenameandonbehalfoftheStateunderthissubchapter
shallinanywayobligatetheStatetoraiseanymoneybytaxationoruseother
fundsforanypurposetopayanydebtormeetanyfinancialobligationtoany
personatanytimeinrelationtoaneligiblefacilityfinancedinwholeorin
partbytheissueoftheAuthority’sbondsunderthissubchapter,exceptfrom
moniesreceivedortobereceivedunderafinancingorsecuritydocument
enteredintounderthissubchapterorexceptasmayberequiredbyanyother
provisionoflaw.Notwithstandingtheprovisionsofthissubsection,theState
mayacceptandexpendwithrespecttoaneligiblefacilityanygiftsorgrants
receivedfromanysourceinaccordancewiththetermsofthegiftsorgrants.
***
(f)BondsmaybeissuedbytheAuthorityunderthissubchapterforthe
purposeofmakingloanstolocaldevelopmentcorporationsforindustrialpark
planninganddevelopment,constructing,orimprovingaspeculativebuilding
orsmallbusinessincubatorfacilityonlandownedorheldunderleasebythe
localdevelopmentcorporation,purchaseorimprovementofexistingbuildings BILLASPASSEDBYTHEHOUSE H.398
2025 Page43of65
suitableorthatcanbemadesuitableforindustrialorbusinessincubation
purposes,andpurchaseoflandinconnectionwithanyoftheforegoing.
(1)Beforeissuingbondsforconstructionofaspeculativebuildingor
smallbusinessincubatorfacilityandthepurchaseoflandinconnection
therewith,theAuthorityshallmakethedeterminationsandincorporateinits
minutesthefindingsthat:
(A)theprojectiswithinthescopeofthischapter,willbeofpublic
useandbenefit,andmayreasonablybeexpectedtocreatenewemployment
opportunities;
(B)theproposedsiteforthespeculativebuildingorsmallbusiness
incubatorfacilitywillbelocatedonadequatelandownedortobeacquiredby
thelocaldevelopmentcorporationorleasedbythelocaldevelopment
corporationontermssatisfactorytotheAuthority;
(C)anadequateaccessroadfromapublichighwayisprovidedtothe
proposedsiteandthatsuchutilitiesaswater,sewer,andpowerfacilitiesare
available,orwillbeavailablewhenthespeculativebuildingorsmallbusiness
incubatorfacilityiscompleted;
(D)theprojectplanscomplywithallapplicableenvironmental,
zoning,planning,andsanitarylawsandregulationsofthemunicipalitywhere
itistobelocatedandoftheStateofVermont; BILLASPASSEDBYTHEHOUSE H.398
2025 Page44of65
(E)thelocaldevelopmentcorporationisresponsibleandhas
presentedevidencetodemonstrateitsabilitytocarryouttheprojectas
planned;
(F)evidencehasbeenpresenteddemonstratingthefeasibilityofthe
siteasalocationforbusiness,andadditionalevidencehasbeenpresentedthat
anadequatesupplyoflaborisavailablewithinthelabormarketareatoserve
abusinesslocatedonthesite;
(G)thelocaldevelopmentcorporationhasmadeadequateprovisions
forinsuranceprotectionofthebuildingwhileitisunoccupiedandsuitable
arrangementshavebeenmadeforfireprotectionandmaintenancewhileitis
unoccupied;
(H)theprojectwillbewithoutunreasonableriskoflosstothe
Authority,andthelocaldevelopmentcorporationisunabletosecureon
reasonabletermsthefundsrequiredfortheprojectwithouttheassistanceof
theAuthority;
(I)thefinancingandsecuritydocumentscontainprovisionssuchthat
undernocircumstancesistheStateobligateddirectlyorindirectlytopay
projectcosts;debtservice;orexpensesofoperation,maintenance,andupkeep
ofthefacilityexceptfrombondproceedsorfromfundsreceivedunderthe
financingorsecuritydocuments,exclusiveoffundsreceivedthereunderbythe
Stateforitsownuse; BILLASPASSEDBYTHEHOUSE H.398
2025 Page45of65
(J)neitherthefinancingdocumentnorthesecuritydocument
purportstocreateanydebtoftheStatewithrespecttotheeligiblefacility,
otherthanaspecialobligationoftheStateunderthischapterrequiredby
section232ofthistitle.
(2)Beforeissuingbondsforindustrialparkplanninganddevelopment
andthepurchaseoflandinconnectiontherewith,theAuthorityshallmakethe
determinationsandincorporateinitsminutesthefindingsthat:
(A)theproposedindustrialparkisonadequatelandownedortobe
ownedbythelocaldevelopmentcorporationorleasedbythelocal
developmentcorporationontermssatisfactorytotheAuthority;
(B)anadequateaccessroadfromapublichighwayisprovidedtothe
proposedsite,andutilities,includingwater,sewer,andpowerfacilities,are
availableorwillbeavailableforanyfuturetenantlocatedinthepark;
(C)thetotalindustrialparkwillbeplannedbyarchitectsand
engineersacceptabletotheAuthority;
(D)nomorethan80percentofthefairmarketvalueoftheindustrial
park,asshownbyappraisalbyanappraiseracceptabletotheAuthority,isto
befinancedundertheloan;
(E)theparkprojectiswithinthescopeofthischapter,willbeof
publicuseandbenefit,andmayreasonablybeexpectedtocreatenew
employmentopportunities; BILLASPASSEDBYTHEHOUSE H.398
2025 Page46of65
(F)theparkprojectcomplieswithallapplicableenvironmental,
zoning,planning,andsanitarylawsandregulationsofthemunicipalityin
whichitistobelocatedandoftheStateofVermont;
(G)thelocaldevelopmentcorporationisresponsibleandhas
presentedevidencetodemonstrateitsabilitytocarryouttheparkprojectas
planned;
(H)evidencehasbeenpresenteddemonstratingthefeasibilityofthe
siteasalocationforindustry,andadditionalevidencehasbeenpresentedthat
anadequatesupplyoflaborisavailablewithinthelabormarketareatoserve
anindustrylocatedonthesite;
(I)theparkprojectwillbewithoutunreasonableriskoflosstothe
Authority,andthelocaldevelopmentcorporationisunabletosecureon
reasonabletermsthefundsrequiredfortheprojectwithouttheassistanceof
theAuthority;
(J)thefinancingandsecuritydocumentscontainprovisionssuchthat
undernocircumstancesistheStateobligateddirectlyorindirectlytopay
projectcosts;debtservice;orexpensesofoperation,maintenance,andupkeep
ofthefacilityexceptfrombondproceedsorfromfundsreceivedunderthe
financingorsecuritydocuments,exclusiveoffundsreceivedthereunderbythe
Stateforitsownuse; BILLASPASSEDBYTHEHOUSE H.398
2025 Page47of65
(K)neitherthefinancingdocumentnorthesecuritydocument
purportstocreateanydebtoftheStatewithrespecttotheeligiblefacility,
otherthanaspecialobligationoftheStateunderthischapterrequiredby
section237ofthistitle.
(3)AlldeterminationsandfindingsmadebytheAuthoritypursuantto
thissectionshallbeconclusiveFinancingandsecuritydocumentsshall
containprovisionssuchthatundernocircumstancesistheStateobligated
directlyorindirectlytopayprojectcosts;debtservice;orexpensesof
operation,maintenance,andupkeepofthefacilityexceptfrombondproceeds
orfromfundsreceivedunderthefinancingorsecuritydocuments,exclusiveof
fundsreceivedthereunderbytheStateforitsownuse.
(4)Financingandsecuritydocumentsshallnotcreateanydebtofthe
Statewithrespecttotheeligiblefacility,otherthanaspecialobligationofthe
Stateunderthischapter.
(g)BondsissuedbytheAuthorityunderthissubchaptermaybesecured,in
wholeorinpart,bymortgageinsuranceundersubchapter2ofthischapter
uponthetermsandconditionssetforthinsubchapter2andinthissubsection.
Suchinsurancemaybeintheformofreinsuranceormaybeforthepurposeof
creatingaloanlossreserve,inacasewherethebondsarealsosecuredbythe
mortgageinsurancefromanothersource.Theprincipalamountofbondsso
securedoutstandingatanytimewithrespecttofacilitiesofanyoneuser,or BILLASPASSEDBYTHEHOUSE H.398
2025 Page48of65
anyrelatedperson,inanyonemunicipality,shallnotexceed$2,500,000.00.
Forpurposesofthissubsection,theterm“mortgagee”asusedinsubchapter2
ofthischaptershallmeanthepurchasersofthebonds,orwhereappropriate
thetrusteeunderthesecuritydocument;themortgagepaymentstobeinsured
shallbethoserequiredtobemadebytheuserunderthefinancingdocument;
andbondproceeds,insteadofbeingusedtopayprojectcostsdirectly,maybe
usedtopurchaseparticipationinloansoriginatedbylocalbanksorother
responsiblefinancialinstitutionswheretheproceedsofsuchloanshavebeen
usedtopayprojectcosts.Inauthorizingmortgageinsurancetosecurebonds,
theAuthorityshallmakeallofthefindingsanddeterminationssetforthin
subsection221(a)ofthistitle,exceptthattheprincipalofthemortgagecannot
exceed$2,500,000.00.Inauthorizinganybondsthataretobesecuredby
mortgageinsurance,theAuthorityshallmakeallofthefindingsand
determinationssetforthinsection246ofthistitle,andmaymakethefindings
setforthinsubdivisions246(5)and(7)ofthistitle,notwithstandingthefact
thatthemortgageinsurancewillcreateacontingentliabilityoftheAuthority.
Thecreationofsuchcontingentliabilityshallnotbedeemedtoviolatethe
prohibitioncontainedinsubsection(d),andthestatementrequiredoneach
bondthatitdoesnotconstituteanindebtednessoftheStatemaybemodifiedto
refertothemortgageinsurance.Separateseriesofbondsallofwhichare
securedbymortgageinsurancemaybecombinedpursuanttosubsection(e)of BILLASPASSEDBYTHEHOUSE H.398
2025 Page49of65
thissection,andtheproceedsofanypaymentofsuchmortgageinsurancemay
beallocatedandappliedbythetrusteeforthebenefitofthebondholdersin
accordancewiththetermsofthesecuritydocumentprovidingforthecombined
financingAlldeterminationsandfindingsmadebytheAuthoritypursuantto
thissectionshallbeconclusive.
(h)TheAuthorityisauthorizedtopledgesecurityandtoenterintosecurity,
insurance,orotherformsofcreditenhancement.Apledgeinanyagreement
shallbevalidandbindingfromthetimesuchpledgeshallbemadewithout
anyphysicaldeliveryorfurtheract,andthelienofsuchpledgeshallbevalid
andbindingasagainstallpartieshavingclaimsofanykindintort,contract,
orotherwise,irrespectiveofwhethersuchpartieshavenoticethereof.Any
suchpledgeshallbeperfectedbyfilingoftheagreementintherecordsofthe
Authorityandnofilingneedbemadeunderanyotherprovisionoflaw.
(i)TheAuthoritymaypurchaseanybondissuedunderthissubchapter4.
Subjecttothetermsofanyagreementwiththebondholders,theAuthoritymay
hold,pledge,resell,orcancelanybondpurchasedunderthisparagraph,
expectthatapurchaseunderthisparagraphshallnotcausethe
extinguishmentofsuchbondunlesstheAuthoritycancelsthebondor
otherwisecertifiesitsintentionthatthebondbeextinguished.
(j)Nodesignatedmember,director,officer,employee,oragentofthe
Authorityshallbeliablepersonallyonthebondsoranycontractenteredinto BILLASPASSEDBYTHEHOUSE H.398
2025 Page50of65
bytheAuthorityorsubjecttoanypersonalliabilityoraccountabilitybyreason
oftheissuanceofthebondsunlessthepersonalliabilityoraccountabilityis
theresultofintentionalmisconduct.
Subchapter5.DirectMortgageLoans
§261.ADDITIONALPOWERS
Inadditiontopowersenumeratedelsewhereinthischapter,theAuthority
may:
(1)Makeloanssecuredbymortgagesorotherassets,whichmaybe
subordinatetooneormorepriormortgagesorliens,uponapplicationbythe
proposedmortgagorobligor,whomaybeaprivatecorporation,nonprofit
organization,partnership,person,ormunicipalityfinancinganeligibleproject
describedinsubdivision212(6)ofthistitle,uponsuchtermsastheAuthority
mayprescribe,forthepurposeoffinancingtheestablishmentorexpansionof
eligiblefacilities.SuchloansshallbemadefromtheVermontJobsFund
establishedundersubchapter3ofthischapter.TheAuthoritymayprovidefor
therepaymentandredepositofsuchloansasprovidedinthissubchapter.
***
(3)Purchasepriormortgagessecuredloansandmakepaymentson
priormortgagessecuredloansonanyeligiblefacilitywherethepurchaseor
paymentisnecessarytoprotectanyloanpreviouslymadebytheAuthority.In
addition,theAuthoritymaysell,transfer,convey,andassignanysuchprior BILLASPASSEDBYTHEHOUSE H.398
2025 Page51of65
mortgageorsecurity.MoniesusedbytheAuthorityinthepurchaseofany
priormortgagesmortgageorsecurity,oranypaymentsthereon,shallbe
withdrawnfromtheVermontJobsFund,andanymoniesderivedfromthesale
ofanypriormortgagesmortgageorsecurityshallbedepositedbythe
AuthorityintheVermontJobsFund.
***
§262.FINDINGS
Beforemakinganyloan,theAuthorityshallreceivefromanapplicanta
loanapplicationinsuchformastheAuthoritymaybyregulationrule
prescribe,andtheAuthority,ortheAuthority’sloanofficerpursuanttothe
provisionsofsubdivision216(15)ofthistitle,shalldetermineandincorporate
findingsinitsminutesthat:
(1)Theprojectiswithinthescopeofthischapterandwillincreaseor
maintainemploymentandexpandtheeconomyoftheState.
(2)Theprojectplanscomplywithallapplicableenvironmental,zoning,
planning,andsanitarylawsandregulationsofthemunicipalitywhereitisto
belocatedandoftheStateofVermont.
***
(5)TheprincipalobligationoftheAuthority’smortgageloandoesnot
exceed$5,000,000.00,whichmaybesecuredbylandandbuildingsorby
machineryandequipment,orboth,unless: BILLASPASSEDBYTHEHOUSE H.398
2025 Page52of65
(A)anintegralelementoftheprojectconsistsofthegenerationof
heatorelectricityemployingbiomass,geothermal,methane,solar,orwind
energyresourcestobeprimarilyconsumedattheproject,inwhichcasethe
principalobligationoftheAuthority’smortgageloandoesnotexceed
$6,000,000.00,whichmaybesecuredbylandandbybuildingsormachinery
andequipment,orboth;suchprincipalobligationdoesnotexceed40percent
ofthecostoftheproject;andthemortgagorobligorisabletoobtainfinancing
forthebalanceofthecostoftheprojectfromothersourcesasprovidedinthe
followingsection;or
***
(6)Themortgagorobligorisresponsibleandabletomanageits
responsibilitiesasmortgagorobligorandowneroftheproject.
(7)Themortgageloanhasasatisfactorymaturitydate,innocaselater
than20yearsfromthedateofthemortgage.
(8)Themortgagorobligorisunabletofinancetheprojectupon
reasonabletermswithouttheassistanceoftherequestedloanfromthe
Authority,orinthealternative,thegrantingoftheloanwillserveasa
substantialinducementfortheestablishmentorexpansionofaneligible
projectwithintheState.
(9)Themortgagorobligorhasmadeadequateprovisionforinsurance
protectionoftheprojectwhiletheloanisoutstanding. BILLASPASSEDBYTHEHOUSE H.398
2025 Page53of65
***
§263.MORTGAGELOAN;LIMITATIONS
(a)WhenithasbeendeterminedbytheAuthoritythattheestablishmentor
expansionofaparticulareligiblefacilitywillaccomplishthepublicpurposes
ofthisact,theAuthoritymaycontracttoloantothemortgagorobligoran
amountnotinexcessof40percentofthecostofsucheligiblefacility.In
addition,theAuthorityshallhavedeterminedthatthemortgagorobligorhas
obtainedfromotherindependentandresponsiblesources,suchasbanksand
insurancecompaniesfinancialinstitutionsorotherwise,afirmcommitmentfor
allotherfunds,overandabovetheloanoftheAuthorityandsuchfundsor
propertyasthelocaldevelopmentcorporationmayhold,necessaryfor
paymentofallofthecostoftheproject,andthatthesumofallthesefunds,
togetherwithanyfunds,machinery,andequipmenttobeprovidedbythe
mortgagorobligorisadequateforthecompletionandoperationoftheproject.
(b)AnyloanoftheAuthorityunderthissubchaptershallbeforaperiodof
timeandshallbearinterestatsuchrateasdeterminedbytheAuthorityand
shallbesecuredbyamortgageontheeligiblefacilityoralienonitsassetsfor
whichtheloanwasmadeorupontheassetsofamunicipalcommunications
plant,includingthenetrevenuesderivedfromtheoperationthereof,orboth.
Themortgagesecuredloanmaybesubordinatetooneormoreprior
mortgagesloans,includingthemortgagelienssecuringtheobligationissued BILLASPASSEDBYTHEHOUSE H.398
2025 Page54of65
tosecurethecommitmentoffundsfromtheindependentandresponsible
sourcesandusedinthefinancingoftheeconomicdevelopmentproject.
MoniesloanedbytheAuthorityshallbewithdrawnfromtheVermontJobs
Fundandpaidovertothemortgagorobligorinsuchmannerasprovidedand
prescribedbytherulesandregulationsoftheAuthority.Allpaymentsof
principalandinterestontheloansshallbedepositedbytheAuthorityinthe
VermontJobsFund.
(c)LoansbytheAuthorityforaneligiblefacilityunderthissubchapter
shallbemadeonlyinthemannerandtotheextentprovidedinthissection,
except,however,inthoseinstanceswhereanagencyofthefederalgovernment
participatesinthefinancingofaneligiblefacilitybyloan,grant,orotherwise.
Whenanyfederalagencyparticipates,theAuthoritymayadjusttherequired
ratiooffinancialparticipationbythelocaldevelopmentcorporation,
independentsourcesoffunds,andtheAuthorityinsuchmannerastoensure
themaximumbenefitavailablebytheparticipationofthefederalagency.
Whereanyfederalagencyparticipatinginthefinancingofaneligiblefacility
isnotpermittedtotakeassecurityamortgage,thelienofwhichisjuniorto
themortgageoftheAuthority,theAuthorityshallbeauthorizedtotakeas
securityforitsloanamortgagejuniorinlientothatofthefederalagency.
***
§264.ACCELERATEDREPAYMENTPROVISIONS BILLASPASSEDBYTHEHOUSE H.398
2025 Page55of65
AnydirectmortgageloanmadeonorafterJuly1,1988underthis
subchaptershallbeconditioneduponthemaintenanceofareasonablelevelof
employmentatthefacilityorfacilitiesownedbythemortgagorobligorand
pledgedassecurityfortheloan.Forthepurposesofthissection,areasonable
levelofemploymentshallbedeemednottohavebeenmaintainedwhenevera
mortgagoranobligoremploying50ormoreemployeesatsuchfacilityor
facilitiespermanentlytransfers,withinanythree-yearperiod,50percentor
moreofthoseemployeesoremploymentpositionstoanyout-of-statefacility.
Uponbreachofthiscondition,theAuthoritymaydeclareallprincipaland
interestofthemortgageloanimmediatelydueandpayableandmaycommence
foreclosureonanypropertyheldassecurityforthemortgageloanortakeany
otherlawfulstepstoobtainpayment.
***
§279c.VERMONTEXPORTFINANCEPROGRAM
***
(e)Anyexcessofrevenuesoverexpensesderivedfromthisprogramshall
bedepositedinthedevelopmentfundVermontJobsFund.
***
§280a.ELIGIBLEPROJECTS;AUTHORIZEDFINANCINGPROGRAMS
(a)TheAuthoritymaydevelop,modify,andimplementanyexistingornew
financingprogram,providedthatanyspecificprojectthatbenefitsfromsuch BILLASPASSEDBYTHEHOUSE H.398
2025 Page56of65
programshallmeetthecriteriacontainedintheVermontSustainableJobs
Strategyadoptedunderoutlinedinsection280bofthistitle,andprovided
furtherthattheprogramshallmeetthecriteriacontainedintheVermont
SustainableJobsStrategyadoptedundersection280bofthistitle.These
programsmayinclude:
(1)theMortgageInsuranceProgram,administeredunderchapter12,
subchapter2ofthistitle;[Repealed.]
***
(11)aprogramthatwouldawardgrantsmadetoeligibleandqualified
recipientsasdirectedbytheAgencyofAgriculture,FoodandMarketsorthe
AgencyofNaturalResourcesforthepurposeoffundingwaterquality
initiativesapprovedbytheagencies,providedthatthemaximumamountof
grantsawardedbytheAuthoritypursuanttotheprogramshallnotexceed
$1,340,238.00intheaggregate;or
(12)loanstoagriculturalenterprisesorendeavorsadministeredbythe
Authorityunderchapter16Aofthistitleandanyprogramscreatedthereunder.
(b)ThissectionshallnotapplytotheJobStartProgramauthorizedby
chapter12,subchapter7ofthistitle,andtheagriculturalfinanceprograms
authorizedbychapter16ofthistitle.[Repealed.]
§280b.THEVERMONTSUSTAINABLEJOBSSTRATEGY BILLASPASSEDBYTHEHOUSE H.398
2025 Page57of65
(a)(1)TheGovernor,withtheadviceoftheSecretaryofCommerceand
CommunityDevelopmentandtheAuthority,shalladoptaVermontsustainable
jobsstrategyfortheState,inaccordancewiththeprovisionsofthissection
Beforeissuinganyfundstoaneligiblefacilityoreligibleprojectundersection
280aofthistitle,theAuthorityshallmakeadeterminationthatthefacilityor
projectmateriallysupportsoneofthefollowingobjectives:
(A)creatingorsustainingemploymentopportunitiesforVermonters
inproportiontotheamountoffinancialassistancerequested;
(B)providingqualityemploymentatwageandbenefitlevels
sufficienttopermitareasonablestandardoflivingbycommunitystandards,
andatlevelsthatmaycontributetobringingVermont’saveragewageuptoor
above100percentofthenationalaveragewagerate;
(C) promotingemploymentopportunitiesineconomically
disadvantagedareasandcommunitiesintheState;
(D)advancingtheoverallgrowthofwealthintheVermonteconomy
bypromotingtheproductionandsaleofgoodsandserviceswithasubstantial
VermontcontentandthosethatutilizeVermont’suniquehumanandnatural
resourcebasetomarketsoutsideoftheStateandnation,includingvisitorsto,
andtravelersthrough,theState;
(E)assistingthedevelopmentofabusinessinfrastructurethatwill
contributetosustainableeconomicdevelopment,toincludetheprovisionof BILLASPASSEDBYTHEHOUSE H.398
2025 Page58of65
necessaryservices,includingshipping,warehousing,communications,repair
andmaintenance,technicalservices,distribution,anddependentcare,
particularlywhenintrastatecapabilityintheseareascanreplaceservices
currentlyprovidedbyout-of-statesuppliers;
(F)encouragingeconomicdevelopmentprojectsthatreduce,
mitigate,oreliminatetheeffectsofclimatechange,thepollutionofland,air,
orwater,orthosethatwillinterdictmaterialwithintheStatethat,having
serveditsintendedpurpose,wouldotherwiseenterthesolidwastedisposal
streamandthatwillcausethediversionofsuchmaterialtousefulpurposes,or
thatwillreuseorrecycleanysuchpost-consumermaterial;
(G)encouragingcommercialactivityinthetraditionaldowntown
areasoftheStateandpromotingthroughappropriatecommercialadaptation
thepreservationofsuitablebuildingsorstructuresthatarehistoricallyor
aestheticallysignificant;
(H)encouragingeconomicdevelopmentprojectsthatareconsistent
withandsensitivetotheneedsofthecommunitiesinwhichsuchprojectsare
located;
(I)promotingentrepreneurialactivity,recognizingthatsomeofthose
thatarethesmallbusinessesoftodaywillbethelargeemployersoftomorrow;
and BILLASPASSEDBYTHEHOUSE H.398
2025 Page59of65
(J)aidingintheachievementoftheeconomicdevelopmentand
businessgrowthstrategiesadoptedbytheVermontEconomicProgressCouncil
andtheVermontDepartmentofEconomicDevelopment,whereverpossible
providingassistancetothosecategoriesofenterprisethatmaybedesignated
asespeciallydesirableforVermont.
(2)AlldeterminationsandfindingsmadebytheAuthoritypursuantto
thissectionshallbeconclusive.
(b)(1)TheVermontsustainablejobsstrategyshallcontainthecriteriaupon
whichtheAuthorityshalldevelop,modify,andimplementitspublicfinancing
programs,andthecriteriafordeterminingwhetherinvestmentsshouldbe
madeinaneligibleproject.Suchcriteriashallincludearequirementthat,
beforemakinganyinvestmentorotherfinancialcommitment,theAuthority
shalldeterminethattheproposedprojectisofpublicuseandbenefitandis
withoutunreasonableriskoflosstotheAuthority.
(2)InadoptingtheVermontsustainablejobsstrategy,theGovernor
shallconsider:
(A)thepoliciesestablishedinsection280ofthistitle;and
(B)theeconomicpolicyandeconomicdevelopmentplanoftheState,
asdevelopedbytheEconomicProgressCouncilundersubchapter3ofchapter
29ofthistitleTheAuthoritymayadoptsuchpoliciesandprocedures
necessarytodefinefurtheranytermorcriterionusedinthissectionortoset BILLASPASSEDBYTHEHOUSE H.398
2025 Page60of65
specificstandardsbywhichtomeasuretheextenttowhichanyproposed
projectmeetstherequirementsofthissection.
(c)(1)BeforeadoptingtheVermontsustainablejobsstrategy,theGovernor
shalldirecttheAuthorityandtheSecretaryofCommerceandCommunity
Developmenttosolicitinformationandrecommendationsfromthepeopleand
businessesoftheState.
(2)Aftersolicitinginformationandrecommendations,theAuthorityand
theSecretaryshalljointlydevelopaproposedVermontsustainablejobs
strategy.Indevelopingaproposedstrategy,theAuthorityandtheSecretary
shallconsiderhowbesttointegrateVermont’seconomic,social,and
environmentalvaluesintoaVermontsustainablejobsstrategy.TheAuthority
andtheSecretaryshalljointlypresenttheirproposedstrategytotheHouse
CommitteeonCommerceandtheSenateCommitteeonEconomic
Development,HousingandGeneralAffairsmeetinginjointhearing.
(3)Afterlegislativepresentation,theAuthorityandtheSecretarymay
amendtheproposedstrategy,andshallpresenttheproposedstrategyas
amendedtotheGovernor.TheGovernormayadopttheproposedstrategy,or
mayreturntheproposedstrategytotheAuthorityandtheSecretaryforfurther
developmentandlegislativepresentation.AfteradoptionoftheVermont
sustainablejobsstrategy,anyamendmentstothestrategymaybeadoptedby
theGovernorinaccordancewiththeprocessestablishedbythissectionIn BILLASPASSEDBYTHEHOUSE H.398
2025 Page61of65
decidingwhethertoprovidefinancialassistancetoanapplicant,theAuthority,
afterdeterminingthataprojectmeetsitscreditunderwritingstandards,shall
takeintoaccountthecriteriaoutlinedinthissection,theoverallbenefitsofthe
projecttotheStateandtothecommunityinwhichitisproposedtobelocated,
theamountofassistancerequested,andtheavailabilityofAuthorityresources
tofundtherequest.
***
Subchapter15.DisasterRecoveryLoanFund
§ 280gg.DISASTERRECOVERYLOANFUND
(a)(1)ThereisestablishedwithintheAuthoritytheVermontDisaster
RecoveryLoanFund,referredtointhissubchapteras“theFund,”the
purposeofwhichistoenabletheAuthoritytoprovideloansandotherformsof
financialassistancetobusinessesandagriculturalenterprisesafterdisasters.
(2)TheAuthorityshallconsultwiththeSecretaryofCommerceand
CommunityDevelopmentandtheSecretaryofAgricultureindetermining
whetherfundsshallbemadeavailablefollowingadisastereventimpacting
areasoftheState.Aconsultationshallnotberequiredintheeventofa
disasterdeclarationdeclaredbytheGovernororthePresidentoftheUnited
States.
(b)TheAuthorityshallestablish: BILLASPASSEDBYTHEHOUSE H.398
2025 Page62of65
(1)policiesandproceduresfortheFundthattheAuthoritydetermines
arenecessarytocarryoutthepurposesofthissubchapter;and
(2)financingprogramsnecessarytoensuretimelydeliveryoffinancial
assistanceafteradisaster.
(c)TheAuthorityshalllimittheinterestrateschargedforloansprovided
utilizingfundsfromtheDisasterRecoveryLoanFundtoratesnecessaryto
coverthecostsofadministeringtheFund.
(d)Thisisarevolvingloanprogramandanyexcessofrevenuesover
expensesderivedfromthisprogramshallbedepositedintheFund.
Sec.2.10V.S.A.§ 234isredesignatedandamendedtoread:
§234220a.THEVERMONTJOBSFUND
(a)ThereisherebycreatedtheVermontJobsFund,hereinaftercalledthe
Fund,whichshallbeusedbytheAuthorityasanonlapsingfundforthe
purposesofsubchapters3,5,9,and10ofthischapter.Toitshallbecharged
alloperatingexpensesoftheAuthoritynototherwiseprovidedforandall
paymentsofinterestandprincipalrequiredtobemadebytheAuthorityunder
thissubchapter.Toitshallbecreditedanyappropriationsmadebythe
GeneralAssemblyforthepurposesofsubchapters3,5,9,and10ofthis
chapterandallpaymentsrequiredtobemadetotheAuthorityunder
subchapters3,5,9,and10ofthischapter,itbeingtheintentofthissection
thattheFundshalloperateasarevolvingfundwherebyallappropriationsand BILLASPASSEDBYTHEHOUSE H.398
2025 Page63of65
paymentsmadethereto,unlessrequiredtorepaynotesunderthefollowing
section,maybeappliedandreappliedforthepurposesofsubchapters3,5,9,
and10ofthischapter.MoniesintheFundmaybeloanedatinterestratesto
besetbytheAuthorityforthefollowing:
(1)Loanstolocaldevelopmentcorporationsunderthissubchapter,
providedthatifthefundsforanysuchloanarederivedfromtheissueofnotes
totheStateTreasurerundersection235ofthischapter,theloanshallbear
interestataratenotlessthantherateonthenoteschapter.
(2)Directmortgageloansasdescribedinsubchapter5ofthischapter.
(3)Loansforthefinancingofexportactivitiesundersubchapter9of
thischapter.
(4)OtherloansastheAuthoritymayprescribeundersubchapter10of
thischapter.
(b)InordertoprovidemoniesintheFundforloansunderthischapter,the
AuthoritymayissuenotesforpurchasebytheStateTreasurerasprovidedin
section235ofthischapter.
(c)MoniesintheFundmaybeloanedtotheVermontAgriculturalCredit
Programtosupportitslendingoperationsasestablishedinchapter16Aofthis
titleatinterestratesandontermsandconditionstobesetbytheAuthorityto
establishalineofcreditinanamountnottoexceed$100,000,000.00tobe BILLASPASSEDBYTHEHOUSE H.398
2025 Page64of65
advancedtotheVermontAgriculturalCreditProgramtosupportitslending
operationsasestablishedinchapter16Aofthistitle.
(d)(c)MoniesintheFundmaybeloanedtotheVermontSmallBusiness
DevelopmentCorporationtosupportitslendingoperationsasestablished
pursuanttosubdivision216(14)ofthistitleatinterestratesandontermsand
conditionstobesetbytheAuthority.
(e)(d)MoniesintheFundmaybeloanedtotheVermont504Corporation
tosupportitslendingoperationsasestablishedpursuanttosubdivision
216(13)ofthistitleatinterestratesandontermsandconditionstobesetby
theAuthority.
(f)(e)TheAuthoritymayloanmoneyfromtheFundtotheVermont
SustainableEnergyLoanFundestablishedundersubchapter13ofthischapter
atinterestratesandontermsandconditionssetbytheAuthority.
Sec.3.2024ActsandResolvesNo.113,Sec.B.1100isamendedtoread:
Sec.B.1100MISCELLANEOUSFISCALYEAR2025ONE-TIME
APPROPRIATIONS
***
(h)DepartmentofEconomicDevelopment.Infiscalyear2025,fundsare
appropriatedforthefollowing: BILLASPASSEDBYTHEHOUSE H.398
2025 Page65of65
(1)$150,000GeneralFundforcontinuedfundingoftheInternational
BusinessOfficepreviouslyfundedby2021ActsandResolvesNo.74,Sec.
G.300(b)(1);and
(2)$2,000,000GeneralFundforagranttotheVermontEconomic
DevelopmentAuthoritytoestablishadisasterrelieffundforusebybusinesses
andagriculturalenterprisesfollowinganaturaldisaster.
Sec.43.EFFECTIVEDATE
ThisactshalltakeeffectonJuly1,2025.