(a) The incurring of bonded indebtedness, the issuing of bonds, the making of temporary loans in anticipation of bond sales, and all other matters pertaining to bonded indebtedness shall be controlled by 24 V.S.A. chapter 53 as applicable.

(b) The Town, through the Selectboard, and the School through the school trustees may borrow money in anticipation of taxes. The total amount so borrowed shall not exceed the largest cumulative deficit plus the next month's expenses for the fiscal year.

(c) In case of emergency, the Selectboard or school trustees may borrow money in the name of the Town or the school. The emergency borrowing in any year shall not exceed five percent of the total amount voted at the annual meeting for the Town or school budget. If the Town or school fails to adopt a budget, the emergency borrowing shall not exceed five percent of the amount that the previous year's tax rate would raise.

(d) Notes and orders for anticipated and emergency borrowing shall mature no more than one year from the date of issuance and shall not thereafter be renewed unless the Town or school so votes.

(e) The amount, terms, and conditions of all borrowing except as specified in subsections (a), (b), and (c) of this section shall be by vote of the Town or school.