Section 995 - Agreements for the exemption of interest(a) It is hereby found and determined that proposed amendments to the Internal Revenue Code of 1986, including, particularly, 26 U.S.C. § 103, and the relevant regulations of the U.S. Treasury Department, require the State, municipal corporations, and agencies and instrumentalities thereof, collectively referred to as "Issuers," to enter into agreements, make covenants with the holders of their respective obligations, or take other actions as a condition to the noninclusion of interest on their respective obligations in gross income of recipients for federal income tax purposes. It is hereby further found and determined that it is in the best interests of the issuers to leave no ambiguity as to whether the issuers have the authority to enter into such agreements, make the covenants, or take other actions.(b) Issuers are hereby authorized and empowered to enter into any agreement, make any covenant, or take any other action required to assure that interest on their respective bonds is not included in gross income of the recipients for federal income tax purposes.(c) Notwithstanding the provisions of 24 V.S.A. §§ 4648 and 1753 and section 954 of this title, or any other general, special, or local law to the contrary, issuers are hereby authorized to appropriate and pay to the U.S. Treasury Department, or any other agency of the United States, all or a portion of the income received by the issuers from the investment or reinvestment of the proceeds of their respective bonds, in the amount and to the extent necessary to assure that interest on their respective bonds is not included in gross income of the recipients for federal income tax purposes.Amended by 2022 , No. 105, § 476, eff. 7/1/2022.Added 1985, No. 125 (Adj. Sess.), § 4, eff. 4/18/1986; amended 1987, no. 36, § 3, eff. 5/11/1987.