14-002 Code Vt. R. 14-053-002-X

Current through August, 2024

Section 14 053 002 - RULES REGARDING MUNICIPAL HEAVY EQUIPMENT LOAN FUND

Section I DEFINITIONS

For the purposes of these rules.

A. "Committee" shall mean the State Treasurer and the Traffic Committee as established by 23 V.S.A. § 1003;

B. "Equipment" shall have the same meaning as motorized highway building equipment, road making appliances, motor trucks, or motor vehicles as set forth in 23 V.S.A. § 4.

Section II TERMS

A. No more than $ 1,500,000.00_in new loans shall be made in any fiscal year.

B. The maximum amount that shall be loaned to any municipality shall be $ 90,000.00.

C. Any equipment purchased under this program shall:

1. have useful life of at least three years and may be either new or used;

2. have a purchase price of at least $ 20,000.00; and,

3. be registered for highway use with the Department of Motor Vehicles with the Treasurer, State of Vermont as at least the second lienholder on the Certificate of Title.

D. The amount loaned shall be no more than 75% of the purchase price of the equipment and shall be repaid in no more than three years.

E. The annual interest rate on loans from the fund shall be:

1. for loans to a single municipality, two per cent.

2. for loans to two or more municipalities jointly purchasing equipment, there shall be no interest assessed.

Section III APPLICATIONS/AWARDS

A. Preference shall be given to joint applications.

B. Applications shall be held on file for a period of one year. At the end of such period, an application, which has not resulted in a loan being made, will be deemed to have been denied.

C. Awards shall be made by the Committee twice each fiscal year in May and November.

D. Application forms shall be furnished by the Committee on request.

E. The criteria for making loans shall be:

1. equitable geographical distribution

2. financial need

3. ability to repay

4. determination of sub sections 2 and 3 will be made by applying the same guidelines as for Vermont Municipal Bond Bank applications.

F. When the municipality suffers the destruction of more than one piece of equipment at or near the same time or suffers some unanticipated hardship relating to the equipment and the Committee finds that replacement of such equipment would place an undue financial hardship on the municipality, the Committee may waive any of all of the following:

1. The $ 90,000.00 annual limitation on each municipality established in II. B., Above; or

2. The 75% of the purchase price established in II. D., above.

14-002 Code Vt. R. 14-053-002-X

Effective Date: November 2, 1986 (Secretary of State Rule Log # 86-80)
Amended Date: September 1, 2001 (Secretary of State Rule Log # 01-47)

Statutory Authority: 29 V.S.A. Chapter 61 § 1602