§ 1602.
460 words·~2 min read·
/vt/title-29/chapter-61/1602A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
§ 1602. Application; loans; conditions
(a)Application forms shall be furnished by the Committee on request. Upon Committee approval of an application of a municipality or two or more municipalities applying jointly for purchases as set forth in subsection 1601(a) of this title, the State Treasurer may loan money from the Fund to the applicants. Loans from the Fund shall be used on equipment and vehicles with a useful life of at least five years and a purchase price of at least $20,000.00.
(b)The State Treasurer is authorized to establish terms and conditions, including repayment schedules of up to five years for loans from the Fund to ensure repayment of loans to the Fund. The amount of any loan shall be not more than 75 percent of the purchase price or $150,000.00, whichever is lower. Before a municipality may receive a loan from the Fund, it shall give to the State Treasurer security for the repayment of the funds. The security shall be in such form and amount as the State Treasurer may determine and may include a lien on the equipment or emergency vehicle financed by the loan.
(c)The rates of interest shall be as established by this section to assist municipalities in purchasing equipment upon terms more favorable than in the commercial market. Such rates shall be not more than two percent per annum for a loan to a single municipality, and loans shall bear no interest charge if made to two or more municipalities purchasing equipment jointly.
(d)In any fiscal year, new loans from the Fund shall not exceed an aggregate of $1,500,000.00.
(e)When a municipality suffers the destruction of more than one piece of equipment or a vehicle at or near the same time or suffers some unanticipated hardship relating to the equipment or vehicle and the Committee finds that replacement would place an undue financial hardship on the municipality, the Committee may waive one or both of the following loan limiting factors in subsection
(b)of this section:
(1)the $150,000.00 annual limitation on each municipality; or
(2)the 75 percent of the purchase price limitation.
(f)The State Treasurer shall put forth recommendations to the General Assembly on the maximum individual loan amount from the Fund every five years, commencing on January 15, 2028, based on requests received and loans granted pursuant to this chapter in the five preceding years. (Added 1985, No. 187 (Adj. Sess.), § 3; amended 1987, No. 89, § 314c; 1991, No. 172 (Adj. Sess.), §§ 1, 2; 1999, No. 156 (Adj. Sess.), § 46, eff. May 29, 2000; 2005, No. 175 (Adj. Sess.), § 24; 2023, No. 87 (Adj. Sess.), § 77, eff. March 13, 2024; 2025, No. 27, § E.131.1, eff. July 1, 2025.)