Vt. Stat. Ann. tit. 24, § 4762

Delinquent loan payments due the bank under section 4755 of this title may, with an interest rate of ten percent per annum greater than the interest rate of the loan, be recovered by action in a court of competent jurisdiction against the political subdivision liable therefore or may be deducted, with interest, by, or at the request of, the bank from any other monies payable to such subdivision by any department or agency of the State.