Title 08, Title 08: Banking and Insurance

§ 19105. Orders as to deposits and debts due financial institution During those holidays and so long thereafter as the Governor approves, the Commissioner may issue such orders as to the receipt and payment of deposits by and the creation and discharge of debts and obligations to…

§ 19106. Withdrawals; rateable share of depositor’s interest While restrictions are in force on the withdrawal of the deposits in a Vermont mutual or cooperative financial institution, except those imposed by the financial institution under the provisions of its internal governan…

§ 19107. Publication of orders Orders under sections 19103 through 19106 of this title may be issued and notice thereof given in such manner as the Commissioner determines and may be amended, modified, changed, expanded, or revoked in whole or in part whenever in his or her judgm…

§ 19108. Appeal; receiver The propriety and necessity of the orders issued by the Commissioner under sections 19103 through 19107 of this title shall be open to review upon action brought in the usual form by an aggrieved party within 14 days to the Superior Court of Washington C…

§ 19109. New commercial or savings deposits authorized; withdrawals The Commissioner, by order, may authorize Vermont financial institutions thereafter to receive new commercial deposits or new savings deposits, and the new deposits shall be special deposits and designated as new…

§ 19110. Costs and expenses Costs and expenses incurred by the Commissioner in the exercise of powers given under sections 19101 through 19109 of this title may be assessed by the Commissioner against the Vermont financial institutions concerned and, when so assessed, shall be pa…

§ 19201. Appointment and bonding of conservators Whenever the Commissioner deems it necessary in order to conserve the assets of a Vermont financial institution for the benefit of the depositors and other creditors thereof, the Commissioner may appoint a conservator for the finan…

§ 19202. Conservation of assets Under the direction of the Commissioner, the conservator shall take possession of the books, records, and assets of every description of the Vermont financial institution and take such action as may be necessary to conserve the assets thereof pendi…

§ 19203. Powers of conservator The conservator shall have all the rights, powers, and privileges possessed by receivers consistent with this subchapter and shall be subject to the obligations and penalties to which receivers are subject. (Added 1999, No. 153 (Adj. Sess.), § 2, ef…

§ 19204. Rights of interested parties During the time the conservator remains in possession of the Vermont financial institution, the rights of all parties with respect to the institution, subject to the provisions of law, shall be the same as if a receiver had been appointed the…

§ 19205. Fiduciary powers; appointment of new trustee for trust accounts The conservator shall have the right to exercise all the fiduciary powers that the Vermont financial institution had been exercising. However, if all of the beneficiaries, named in any trust that the financi…

§ 19206. Expenses; salary All expenses of any such conservatorship shall be paid out of the assets of the financial institution and shall be a lien thereon that shall be prior to any other lien provided by law. The conservator shall receive as salary an amount to be fixed by the …

§ 19207. Withdrawals While the financial institution is in the hands of the conservator appointed by the Commissioner, the Commissioner may require the conservator to set aside and make available for withdrawal by depositors and payment to other creditors, on a rateable basis, su…

§ 19208. Deposits (a) In the Commissioner’s discretion, the Commissioner may permit the conservator to receive deposits, but deposits received while the financial institution is in the hands of the conservator shall not be subject to any limitation as to payment or withdrawal, an…

§ 19209. Termination of conservatorship If the Commissioner becomes satisfied that it may safely be done and that it would be in the public interest, in the Commissioner’s discretion, the Commissioner may terminate the conservatorship and permit the financial institution to resum…

§ 19210. Notice to depositors of termination of conservatorship In case the Commissioner, in the exercise of the Commissioner’s discretion, is satisfied that it would be in the public interest to terminate the conservatorship either with or without reorganization, before the cons…

§ 19301. Application for receiver; petition to divide losses If the Commissioner ascertains that a Vermont financial institution is insolvent or that it is unsafe for it to continue to transact business, the Commissioner shall apply to the Superior Court of Washington County for …

§ 19302. Appointment of receiver; notice and hearing The court shall issue a notice to the treasurer and executive officer of such Vermont financial institution to appear at a time and place named in the notice and show cause why a receiver should not be appointed. If sufficient …

§ 19303. Bonding of receiver The receiver shall give bonds to the State with sufficient surety, in a sum fixed by the court, for the faithful discharge of his or her duties and for the due accounting of the monies received by the receiver. (Added 1999, No. 153 (Adj. Sess.), § 2, …

§ 19304. Commissioner as receiver The Commissioner shall be appointed as such receiver unless the Superior judge is satisfied that it would be inadvisable for the Commissioner to act in that capacity. The Commissioner and successors of the Commissioner as receiver shall serve wit…

§ 19305. Duties and rights of receiver The receiver shall collect, sue, and receive the debts and demands due and the property that belong to the Vermont financial institution and shall convert into cash its real and personal estate and, upon the approval of the Superior judge, m…

§ 19306. Federal deposit insurance corporation If the Federal Deposit Insurance Corporation shall have been appointed receiver of a closed Vermont financial institution, it may advance, with the consent and approval of the Superior judge, monies to pay insured deposits or for oth…

§ 19307. Subrogation Whenever any Vermont financial institution shall have been closed, and the Federal Deposit Insurance Corporation shall pay the insured deposit liabilities of such closed institution, such corporation, whether or not it shall have become a receiver of such clo…

§ 19308. Order When on hearing and after such reasonable notice as the Superior judge may direct, any order as to a lien upon assets of a closed Vermont financial institution or of subrogation to the rights of depositors in the institution made by the judge under the authority of…

§ 19309. Limitation on time for proving claims (a) By order, the Superior judge shall limit the time for creditors of the Vermont financial institution to present and prove their claims before the receiver. (b) Within 60 days from the date of such order, the receiver shall cause …

§ 19310. Submission of disallowed claims to Superior judge Claims presented to the receiver, upon his or her request or upon that of a person interested in the financial institution, or upon request of a creditor within 20 days after notice of the disallowance of his or her claim…

§ 19311. Order to discontinue unauthorized practices Whenever it appears to the Commissioner from the examination made by him or her, or from any report made to him or her, that a Vermont financial institution has committed a violation of its charter or of law, or is conducting i…

§ 19312. Failure to comply with Commissioner’s order If such financial institution or any of its officers refuses or neglects to comply with such order, the Commissioner may apply to the Superior Court of Washington County for such an injunction or order against such financial in…

§ 19313. Authority of court to enforce Commissioner’s order The court shall issue a notice to the treasurer and president of such financial institution and to any officer who is alleged in such petition to have failed to proceed in conformity with the requirements of law to appea…

§ 19314. Accounting and report of receiver Annually, on or before January 31, and at such other time as may be required by the Commissioner, so long as the receivership is continued, the receiver of a financial institution shall make and transmit to the Commissioner a full statem…

§ 19315. Appeal A person dissatisfied with an order or decree of the Superior judge in any proceeding arising under this chapter may file an appeal as in other cases. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 313, eff. July 1…

§ 19401. Plan for reopening or establishment of new financial institution If any Vermont financial institution has been closed by action of the Commissioner or its governing body and a receiver, either temporary or permanent, appointed or petitioned for, the depositors thereof, r…

§ 19402. Petitioning court for hearing; notice; hearing; approval of plan (a) Upon receiving the approval of the plan by the Commissioner, the committee or the Commissioner may petition the Superior Court of Washington County, setting forth the details of the plan that has been a…

§ 19403. Depositor’s objection to plan; receivership continued If any of the depositors of the Vermont financial institution file written objections to the approval of the plan and refuse to consent to the plan, the court at the hearing may direct the receiver to set aside assets…

§ 19404. Deposits of public money If, in any financial institution referred to in section 19401 of this title, there are deposits of public money belonging to the State or any political subdivision of the State, the State Treasurer, if the deposit belongs to the State, and the Tr…

§ 19405. Deposits not paid or received; business continued When a proceeding has been brought under section 19401 of this title, a deposit shall not be paid or received by that financial institution after the filing of the petition until the final decree of the Superior judge or,…

§ 19406. Orders under which financial institution may continue business Those orders shall provide that deposits received after the petition is filed and before the final decree shall be kept in cash or invested in such liquid securities as the Commissioner shall approve and segr…

§ 19407. Expenses; deposits received after petition filed The expense of operation between filing of the petition and final decree shall be apportioned between the original assets and the new assets in such manner as the Superior judge may deem just. The deposits received between…

§ 19408. Petition denied; receiver to wind up affairs If the petition is denied, the Commissioner shall apply for a receiver to wind up the affairs of the financial institution, as provided in sections 19301 through 19315 of this title. In that case, the deposits, if any, receive…

§ 19501. Petition; powers; procedure (a) The Commissioner may apply to the Superior Court of Washington County to be appointed ancillary receiver of a state financial institution or any branch or subsidiary of a state financial institution in hazardous financial condition, if the…