§ 2432 - Powers and duties, investments
§ 2432. Powers and duties, investments
(a) The trustees shall apply the income of such estate to the purpose for which it is held, and deeds or contracts made by them shall be in the name of the town. They may lease, sell, or convey real estate so held, and invest the funds received therefrom. They may loan money belonging to such estate, at annual or semi-annual interest, and as security for such loans shall take deeds or mortgages of real estate in this state.
(b) The trustees may invest in:
(1) Any security, including a revenue obligation, issued, insured, or guaranteed by the United States;
(2) Such municipal bonds or other bonds that are rated at the time of the transaction by a nationally recognized statistical rating organization in one of its four highest categories;
(3) Repurchase agreements or debt securities of any federally insured financial institution as defined in subdivision 11101(32) of Title 8;
(4) The shares of an investment company, or a unit investment trust, which is registered under the federal investment company act of 1940, as amended, if such mutual investment fund has been in operation for at least ten years and has net assets of at least $500,000,000.00; or
(5) Deposits in federally insured financial institutions as defined in subdivision 11101(32) of Title 8.
(c) The trustees shall have full power to hold, purchase, sell, assign, transfer, and dispose of any of the securities and investments in which any of the funds shall have been invested, as well as the proceeds of such investments. The trustees are encouraged to invest in financial institutions operating in the state and in investments within the state that will result in reinvestment in Vermont. The provisions of this section as to future investments shall not require the liquidation or disposition of securities legally acquired and held. (Amended 2003, No. 150 (Adj. Sess.), § 8.)