(a) The creation of the Agency and the carrying out of its corporate purposes is in all respects for the benefit of the people of the State of Vermont and for the improvement of their education, health, welfare, and prosperity, and is a public purpose. The Agency will be performing an essential governmental function in the exercise of the powers conferred upon it by this chapter. The State of Vermont covenants with the holders of the bonds and notes that the Agency shall be required to pay no taxes or assessments upon any of the property acquired by it or under its jurisdiction, control, possession, or supervision, or upon its activities in the operation and maintenance of facilities, or upon any monies, revenues, or other income received by the Agency; and that the bonds and notes of the Agency and the income from them shall at all times be exempt from taxation, except for transfer and estate taxes.

(b) The State of Vermont does pledge to and agree with the holders of the bonds that the State will not limit or alter the rights hereby vested in the Agency to acquire, mortgage, construct, reconstruct, and equip the facilities, to maintain, reconstruct, improve, and operate the facilities, to establish and collect such rates, rental, fees, and other charges as may be convenient or necessary to produce sufficient revenue to meet the expense of maintenance and operation and to fulfill the terms of any agreements made with the holders of the bonds or in any way impair the rights and remedies of the bondholders, until the bonds, together with interest, thereon, with interest on any unpaid installment of interest, and all costs and expenses incurred by the Agency in connection with the facilities or in connection with any action or proceedings by or on behalf of the bondholders, are fully met and discharged. (Added 1966, No. 56 (Sp. Sess.), § 10, eff. March 12, 1966; amended 1969, No. 224 (Adj. Sess.), § 7, eff. March 31, 1970; 1971, No. 67, § 4, eff. April 15, 1971; 2013, No. 92 (Adj. Sess.), § 231, eff. Feb. 14, 2014.)