Title 08, Title 08: Banking and Insurance

§ 14105. Participation in public agencies A financial institution has the power to participate in a public agency created under the laws of this State or of the United States, the purpose of which is to afford advantages or safeguards to financial institutions, depositors, or inv…

§ 14106. Expanded powers of Vermont financial institutions In addition to all other powers permitted under these statutes, any Vermont financial institution shall have the powers conferred under federal law administered by the Federal Reserve Board, the Office of the Comptroller …

§ 14107. Investments (a) A Vermont financial institution may invest its assets prudently in accordance with the best judgment of its governing body in a manner consistent with this section. (b) A Vermont financial institution may not acquire more than five percent of the equity i…

§ 14108. Prohibited mergers and acquisitions (a) No depository institution may by merger, consolidation, or other form of acquisition come to hold in excess of 30 percent of the total time and demand deposits held in Vermont by depository institutions. For the purposes of this se…

§ 14109. Prohibited management interlocks A director or officer of a Vermont financial institution shall not at the same time be a director or officer of another financial institution engaged in the business of banking in the State of Vermont or a state contiguous to Vermont. The…

§ 14110. Duties of executive officers, directors, and persons who control principal equity interests in financial institutions; officers may not receive fees (a) All executive officers, directors, and holders of principal equity interest of a Vermont or state financial institutio…

§ 14201. Deposit powers (a) Applicability. This subchapter governs deposits or accounts in financial institutions. (b) General deposit powers. (1) A financial institution may receive money on deposit and may establish the terms and conditions of each deposit contract. A financial…

§ 14202. Payment of deposits to administrators from another state or country (a) When a deposit is made in a financial institution by a person residing in another state or country, the deposit, or any part thereof, with the interest thereon, may be paid to the administrator or ex…

§ 14203. Trust deposits; payment on death of trustee When a deposit is made in a financial institution by one or more persons in trust for another, the name and residence of the person for whom the deposit is made shall be disclosed, and the deposit shall be credited to the depos…

§ 14204. Joint deposits (a) Payment. When a deposit has been made in a financial institution in the names of two or more persons, payable to any one of them, or payable to the survivors or any one of the survivors, such deposit or any part thereof, or any interest or dividend the…

§ 14205. Payable on death accounts (a) A “payable-on-death account” is created by a deposit in a financial institution in the name of an account holder or several joint account holders with a designation that the account is payable on death to one or more payees, known as “P.O.D.…

§ 14206. Deposits of minors; exemption from trustee process (a) Payment. The governing body of a financial institution, in its discretion, may accept deposits from a minor and may pay to a minor such sum as is deposited to the credit of such person, and is due, as if such minor w…

§ 14207. Provisions when title to deposit is litigated (a) Multiple claims. In actions against a financial institution by one spouse to recover for monies deposited by the other spouse in the latter’s own name, the depositing spouse may be a witness. In actions against such finan…

§ 14208. Security for deposits No Vermont or state financial institution may pledge, hypothecate, or deliver any of its assets of any description whatsoever as security for a deposit of private funds, or for the purpose of indemnifying any person, as surety for the financial inst…

§ 14209. Examination of accounts Each Vermont financial institution shall annually cause a sampling of its loans and deposit accounts to be verified by the account holder. The verification shall be under the direction of an outside auditor or the internal auditor of the Vermont f…

§ 14210. Real estate trust and escrow (a) In accordance with its schedule for similar remittances, any financial institution in which a pooled real estate trust or escrow account has been established under 26 V.S.A. § 2214(c) shall remit the interest accumulated on the account to…

§ 14211. Claims not clearly consistent If any claim not clearly consistent with the terms of any applicable authority on file with a financial institution is made to any deposit, safe deposit box, property held in safekeeping, security, obligation, or other property in the financ…

§ 14212. Joint fiduciary accounts (a) Statement of purpose. The purpose of this section is to create a new form of joint financial account for which the account owner designates a fiduciary with authority to use monies in the account for the benefit and under the direction of the…

§ 14301. Loan authority (a) General loan authority. Unless otherwise prohibited by State law, a Vermont financial institution may make, sell, purchase, arrange, participate in, invest in, or otherwise deal in loans, derivative transactions, or extensions of credit for any lawful …

§ 14302. Real estate loans (a) Clear title. All loans secured by mortgages on real estate shall be supported by written evidence satisfactory to the financial institution that title to the security is marketable and the lien is valid and enforceable. A mortgage on lands subject t…

§ 14303. Bank credit cards (a) General authority. Any financial institution that is authorized to do a lending business in this State may issue bank credit cards. (b) No discrimination. No financial institution shall discriminate against any applicant for a bank credit card on th…

§ 14304. Card holder represented by legal counsel (a) A credit card company or its creditor or collection agency shall not contact a card holder regarding a debt, late fee, or other charge once informed that the card holder is disputing the debt, late fee, or other charge; is rep…

§ 14401. Types of trust functions (a) With the prior approval of its governing board, a financial institution may act alone or with others as: (1) fiduciary; (2) custodian of property; (3) agent or attorney in fact; (4) registrar or transfer agent of securities; (5) trustees unde…

§ 14402. National financial institutions; state financial institutions (a) To the same extent that the laws of the United States permit, a national financial institution located and doing business in this State may act, alone or with others, as specified in section 14401 this tit…

§ 14403. Approval of Commissioner No financial institution not otherwise expressly authorized by its respective supervisory agency under state or federal law may exercise the powers provided in this subchapter until it has applied for and obtained approval of the Commissioner to …

§ 14404. Security The capital of a financial institution exercising trust powers shall be held as security for the faithful discharge of the duties undertaken thereby as well as for the claims of other creditors. The financial institution shall furnish to the authority making the…

§ 14405. Powers and duties of officers In proceedings in the Probate Division of the Superior Court or elsewhere, connected with authority exercised as executor, administrator, receiver, assignee, trustee, or guardian, all accounts, returns, and other papers may be signed and swo…

§ 14406. Segregation of trust funds; exception All monies, property, or securities received or held by a financial institution in the capacity of executor, administrator, receiver, assignee, trustee, or guardian shall be kept separate and distinct from its general business and sh…

§ 14407. Collective investment funds (a) A Vermont financial institution may invest assets that it holds as a fiduciary in the following collective investment funds: (1) a fund maintained by the financial institution, or by one or more affiliated financial institutions, exclusive…

§ 14408. Registration and sale of securities A Vermont or state financial institution owning or holding stocks or other securities in any fiduciary capacity may cause the same to be registered in the name of a nominee. The word “nominee” shall be construed to include one or more …

§ 14409. Disposition of securities upon court order; liability for acts of nominee Any fiduciary financial institution may dispose of any security under an order or decree of any court of competent jurisdiction by delivery of the security endorsed by the nominee as provided in se…

§ 14410. Fiduciary investments (a) In the absence of an express prohibition in the instrument, judgment, decree, power, order, or other writing creating a trust or other fiduciary relationship, a financial institution acting as fiduciary may invest and reinvest funds held by it i…

§ 14501. Failure to pay rent; removal of contents (a) If the amount due for the use of any safe or box in the vaults of a financial institution is not paid for one year, or such other period as may be fixed in the contract of renting of such safe or box, the financial institution…