Title 08, Title 08: Banking and Insurance

§ 31105. Payment of share deposits (a) A credit union organized under this chapter shall not commence business until the minimum share deposits required by the order granting permission to organize have been deposited in cash to the credit of the credit union in a depository desi…

§ 31106. Certificate to commence business; insurance; bond (a) Upon receipt of the statement required in subsection 31105(b) of this title, the Commissioner shall cause an examination to be made to determine if the minimum share deposits have been credited to the account of the c…

§ 31107. Failure to commence business (a) The proposed credit union’s certificate of approval and its right to do business shall lapse if the credit union fails to commence business as a credit union within two years after receiving a certificate of approval under section 31102 o…

§ 31108. Amendment to articles of incorporation (a) The articles of incorporation, or comparable organization document as applicable to the credit union, may be amended as provided in the bylaws. Notwithstanding the provisions of the bylaws, however, written notice of the meeting…

§ 31201. Bylaws; amendment of bylaws (a) The organizers applying for the organization of a credit union shall adopt bylaws that prescribe the manner in which the business of the credit union shall be conducted. The bylaws shall include at least the following: (1) the name of the …

§ 31202. Credit union name (a) The name of every credit union organized under this title shall include the phrase “credit union.” No credit union may adopt a name either identical to the name of any other credit union or entity doing business in this State or so similar to the na…

§ 31301. Number and election of directors (a) The governing body of a credit union shall consist of an odd number of directors, at least five in number. The initial governing body shall be elected at the organizational meeting of the credit union as provided in subsection 31103(e…

§ 31302. Duties of governing body The governing body shall have authority for the general management of the credit union and, among other things, the governing body shall: (1) have the authority and responsibility for directing the operations, funds, and records of the credit uni…

§ 31303. Executive committee (a) The executive committee, if one is appointed by the governing body, shall consist of an odd number of no fewer than three directors of the credit union. (b) The executive committee shall meet in accordance with section 31304 of this title and as o…

§ 31304. Meetings of governing body (a) The governing body of a credit union shall meet as often as necessary and at least monthly, provided that if the governing body delegates its authority to an executive committee, the executive committee shall meet during the months in which…

§ 31305. Officers (a) At the first regularly scheduled meeting of the entire governing body at which a quorum is present following the organizational meeting and thereafter following each annual meeting, but in no event more than 30 days after such organizational meeting or annua…

§ 31306. Supervisory committee (a) The supervisory committee shall consist of no fewer than three members of the credit union, none of whom shall simultaneously serve as a director, serve on the credit committee, serve as an officer of the credit union, and be otherwise regularly…

§ 31307. Credit committee; credit manager (a) Except as provided in section 31313 of this title, the governing body may delegate, in accordance with its bylaws, all or part of its lending authority to a credit committee, a credit manager, one or more loan officers, or any combina…

§ 31308. Duties of officers, directors, and committee members (a) All officers, directors, and members of any committees of a credit union subject to the laws of this State under this title shall comply with the standards for such officers and directors established under Title 11…

§ 31309. Oaths of office; certificate of election (a) Within 10 days after election to any position, each person so elected or appointed shall execute an oath of office by which he or she agrees to accept, and diligently and faithfully to carry out, the duties and responsibilitie…

§ 31310. Prohibited management interlocks (a) Except with the Commissioner’s prior written approval, a director, officer, or employee of any other credit union or financial institution shall not at the same time be a director, officer, or employee of a credit union with a place o…

§ 31311. Suspension and removal (a) The governing body of a credit union shall have the power to remove, by a two-thirds vote of its members at a regular or special meeting, a director or a governing-body-appointed committee member: (1) who fails, without good cause, to attend th…

§ 31312. Vacancies A vacancy on the governing body, the supervisory committee, or any other governing-body-appointed or member-elected committee that exists due to the death, resignation, or removal of a director or committee member shall be filled by majority vote of the remaini…

§ 31313. Conflict of interest (a) The governing body of a credit union shall adopt a written conflict of interest policy that includes provisions addressing transactions with insiders, employees, volunteers, and their immediate family members, and other persons having a common ow…

§ 31314. Compensation; insurance; expenses (a) No officer of the governing body, no director, nor any committee member, other than the treasurer, may be compensated for services as such. However, providing reasonable health, accident, and similar insurance protection shall not be…

§ 31401. Field of membership (a)(1) Except as provided in subdivision (2) of this subsection, the field of membership of a credit union is limited to: (A) a single common bond membership; (B) a multiple common bond membership; (C) persons or organizations within one or more well-…

§ 31402. Membership application The governing body shall act upon applications for membership as prescribed in its bylaws. The governing body may delegate its authority to act on applications for membership as provided in subdivision 31302(2) of this title. A person denied member…

§ 31403. Liability of members The members of the credit union shall not be personally or individually liable for the acts, debts, liabilities, or obligations of the credit union or the payment of the credit union’s debts solely by virtue of their membership in the credit union. (…

§ 31404. Membership termination (a) Any member may withdraw from a credit union at any time upon giving notice of withdrawal as required by the bylaws. (b) Any member may be expelled by a majority vote of the members present at any regular membership meeting or a special membersh…

§ 31405. Suspension of services A credit union may suspend or limit the use of services to credit union members who have caused a loss to the credit union, who have violated the membership agreement or any policy adopted by the governing body, or who are physically or verbally ab…

§ 31406. Meetings of members (a) The annual meeting and any special meetings of the members of the credit union shall be held in accordance with the bylaws. (b) On all questions and elections brought to the membership for a vote, each member shall have one vote, regardless of the…

§ 31407. Special membership meetings (a) The supervisory committee by a majority vote may call a special meeting of the members to consider any violation of this part, any other law or regulation applicable to the credit union, the credit union’s articles of incorporation or byla…

§ 31408. Notice to members of annual and special meeting (a) Notice of any annual or special meeting shall be given in accordance with the requirements of the Vermont Nonprofit Corporation Act, Title 11B, Vermont Statutes Annotated. Notice may be given electronically if the membe…

§ 31501. Net worth Every Vermont credit union shall establish and maintain adequate levels of net worth pursuant to standards established by the Commissioner, as amended from time to time. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

§ 31502. Regular reserve account (a) Every credit union shall accumulate and maintain a regular reserve account that shall be held to meet losses until the credit union is dissolved, when it may be distributed among the members. The regular reserve account shall be accumulated an…

§ 31503. Allowance for loan and lease loss (a) An allowance for loan and lease loss account shall be established and maintained in an amount that represents the current estimated loss on loans and leases. The allowance for loan and lease loss account requirement shall be computed…

§ 31504. Unrealized gain or loss on available for sale securities (a) An unrealized gain or loss on available-for-sale securities account shall be established and maintained in an amount that represents the current estimated gain or loss on investments. (b) Changes to the allowan…

§ 31505. Additional or special reserves If the Commissioner determines that any reserve account is inadequate for any reason, he or she may require the establishment of such additional or special reserves as he or she deems necessary for the protection of the members. (Added 2005…

§ 31506. Dividends to shareholders; conditions precedent (a) The governing body of any credit union may declare a dividend from the credit union’s current period undivided earnings, which dividend shall be calculated as provided in this subchapter for any period determined by the…

§ 31507. Standards For purposes of this subchapter, in the absence of standards otherwise prescribed by the Commissioner, a credit union shall follow the standards established by the National Credit Union Administration (NCUA). In the event standards established by the NCUA requi…

§ 31601. Share insurance (a) Every credit union authorized to do business in this State under this title shall ensure its members’ shares with the National Credit Union Administration (NCUA) or the successor to that federal agency. (b) A credit union insured under this section sh…

§ 31602. Bonds and insurance (a) Every credit union authorized to do business in this State under this title shall acquire and maintain a blanket fidelity bond covering the directors, officers, employees, members of official committees, attorneys at law, and other agents with pro…

§ 31701. General application (a) Any corporate credit union chartered by the Commissioner shall be subject to such rules and orders as the Commissioner deems appropriate and, except as otherwise specifically provided in such rules or orders, shall be vested with or subject to the…

§ 31702. Organization (a) Application to form a corporate credit union shall be made in writing to the Commissioner. A corporate credit union shall be organized and operated under the provisions of this part, except to the extent such provisions are not consistent with this subch…

§ 31703. Membership (a) Membership in the corporate credit union may consist of Vermont-chartered credit unions, any other state-chartered credit union, any federally chartered credit union, organizations or associations of credit unions, and such other organizations provided for…

§ 31704. Purposes A corporate credit union is a credit union whose members consist primarily of other credit unions and whose purposes are to: (1) accumulate and prudently manage the liquidity of its member credit unions through interlending and investment services; (2) act as an…

§ 31705. Powers A corporate credit union shall enjoy the powers and privileges of any other credit union incorporated under this part in addition to those powers enumerated in this subchapter, notwithstanding any limitation or restrictions found elsewhere in this part. The Commis…

§ 31706. Reserves Each corporate credit union shall maintain such reserves and accounts as required by the regulations of the National Credit Union Administration, or its successor, as amended from time to time. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (…