Title 08, Title 08: Banking and Insurance

§ 10502. Definitions relating to basic banking As used in sections 10501 through 10504 of this title, the following terms shall have the following meanings: (1) “Basic checking account” means a deposit account on which the consumer is permitted to make payments or transfers by ch…

§ 10504. Basic banking rules The Commissioner may adopt rules to require financial institutions with their principal place of business in this State to offer basic checking and savings accounts if the Commissioner finds a material deterioration in the availability and cost of bas…

§ 10505. Returned check charges No depository institution or credit union shall assess a returned check charge or similar charge against a depositor for the costs of processing a check received by that depositor and returned for nonsufficient funds by the institution upon which i…

§ 10506. Unsolicited distribution of cash advance contracts and notes No person shall distribute by mail, or in any other manner, to a Vermont resident an unsolicited cash advance contract or note in furtherance of that contract. A person who violates this section shall also be s…

§ 10601. Application This subchapter shall apply to all persons licensed, authorized, or registered, or required to be licensed, authorized, or registered, under Parts 2, 4, and 5 of this title. (Added 2005, No. 18, § 1; amended 2015, No. 128 (Adj. Sess.), § F.2, eff. May 24, 201…

§ 10602. Compliance with federal laws and regulations (a) All persons subject to this subchapter shall comply with all applicable requirements of the Truth in Lending Act of 1968, Pub. L. No. 90-321, Title I and Regulation Z, 12 C.F.R. Part 1026; the Real Estate Settlement Proced…

§ 10603. Penalty The Commissioner, in addition to using any other power exercisable by the Commissioner under this title, may: (1) impose an administrative penalty of not more than $1,000.00 for each violation upon any person who violates or participates in a violation of any law…

§ 10701. Definitions As used in this subchapter: (1) Financial institution. “Financial institution” means a financial institution as defined in subdivision 10202(5) of this chapter. (2) Reverse mortgage loan. “Reverse mortgage loan” means a loan that: (A) is a loan in which the c…

§ 10702. Counseling Prior to accepting an application for a reverse mortgage loan, a financial institution shall refer every borrower to counseling from an organization that is a housing counseling agency approved by the U.S. Department of Housing and Urban Development and shall …

§ 10703. Annuities A financial institution shall not require an applicant for a reverse mortgage to purchase an annuity as a condition of obtaining a reverse mortgage loan. A financial institution or a broker arranging a reverse mortgage loan shall not: (1) offer an annuity to th…

§ 10704. Limitation on reverse mortgage loan programs No financial institution shall issue a reverse mortgage loan unless it is a lender approved by the federal Department of Housing and Urban Development (HUD) to enter into a loan insured by the federal government and the revers…

§ 11101. Definitions Except as otherwise specifically provided elsewhere in this title, and subject to such definitions as the Commissioner adopts by rule, the following terms have the following meanings for purposes of Parts 1, 2, and 5 of this title, unless the context clearly …

§ 11201. Business days (a)(1) For purposes of this title, unless otherwise provided under other state or federal law applicable to a Vermont or state financial institution that is a depository institution, a business day is a calendar day other than the following: (A) Saturday an…

§ 11202. Banking day (a) Each Vermont and state depository institution shall be open not less than five banking days each week, except for the days enumerated in subsection 11201(a) of this title or except as otherwise provided in this chapter. (b) In addition to the hours of eac…

§ 11203. Special hours In addition to the hours of each banking day under subsection 11202(a) of this title, a Vermont or state depository institution may have special hours on banking or other than banking days when it is open in a limited capacity for certain definite and state…

§ 11204. Closing for cause A Vermont or state depository institution may temporarily close any of its offices for reasons that include good cause, extreme weather conditions, and community events. If a Vermont or state depository institution temporarily closes any of its offices …

§ 11205. Emergency closing by financial institution (a) If an emergency arises or is so imminent and immediate as to interfere with or threaten the conduct of normal banking transactions or the safety and welfare of a Vermont or state depository institution’s plant, assets, or pe…

§ 11301. Preservation of records (a) A Vermont financial institution, and a state financial institution with a branch in this State, shall keep those books, accounts, and records relating to all of its transactions that will enable the Commissioner to ensure full compliance with …

§ 11401. Financial reports (a) The Commissioner shall require each Vermont financial institution to submit at least quarterly in each calendar year a report of its condition in such manner and as of such dates as the Commissioner may fix. Only summary reports and examinations sha…

§ 11402. Internal audits (a) The governing body shall cause internal audits of the Vermont financial institution to be performed. The internal audit shall be reported in writing to the governing body at least once in six months if made by a committee of the governing body and at …

§ 11403. Periodic reports from state financial institutions with a branch, office, or activity in this State (a) The Commissioner may require periodic reports from any state financial institution that has established and maintains a branch in this State pursuant to section 15202 …

§ 11404. Reports required under consumer protection chapter A financial institution shall file with the Commissioner reports as required by chapter 200 of this title on the following: (1) community reinvestment activities; and (2) basic banking. (Added 1999, No. 153 (Adj. Sess.),…

§ 11405. Exemption from annual report to Secretary of State Vermont financial institutions shall not be required to make any annual report to the Secretary of State. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)

§ 11501. Examinations (a) The Commissioner shall conduct a regular examination of the condition of each Vermont financial institution at least once every three years or more frequently as the Commissioner determines it to be prudent. (b) The Commissioner may at any time conduct a…

§ 11502. Confidentiality of investigation and examination reports (a) Regardless of source, all records of investigations, including information pertaining to a complaint by or for a consumer, and all records and reports of examinations by the Commissioner, whether in the possess…

§ 11503. Examinations by federal regulatory agencies; departmental participation Where an examination is normally conducted by the Department jointly with a federal regulatory authority, the Commissioner, at such times as the Commissioner deems necessary or appropriate because of…

§ 11504. Examinations; cooperative agreements (a) To the extent consistent with subsection 11505(a) of this title, the Commissioner may make such examinations of any branch established and maintained in this State pursuant to chapter 205 of this title by a state financial institu…

§ 11505. Cooperative and other agreements (a) The Commissioner may enter into cooperative, coordinating, and information-sharing agreements with any other governmental agency, the Federal Home Loan Bank, or any organization affiliated with or representing one or more governmental…

§ 11601. Enforcement powers of Commissioner (a) The Commissioner may: (1) Restrict the withdrawal of deposits from a Vermont financial institution, a state financial institution, or a branch of a foreign bank licensed under this title when the Commissioner finds that extraordinar…

§ 11602. Power of Commissioner to impose corrective action (a) The Commissioner may, in addition to any other power exercisable by the Commissioner under the provisions in this title, require a Vermont financial institution or state financial institution with a branch in this Sta…

§ 11603. Criminal penalties (a) It shall be a criminal offense, punishable by a fine of not more than $1,000.00 or imprisonment of not more than one year, or both, for any person to violate any existing order of the Commissioner or, after receipt of a removal order, or an order a…

§ 11604. Indemnification A financial institution shall not indemnify any person for any penalty or fine imposed under this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)

§ 11605. Commissioner’s coordination of enforcement and corrective action with home state The Commissioner shall promptly give notice to the home state supervisory agency of each enforcement or corrective action proposed to be undertaken against a state financial institution and,…

§ 11701. Application of subchapter (a) An application required to be filed under chapter 202, 203, 206, 207, or 210 of this title for the approval of the Commissioner, including an application for a charter, merger, acquisition, conversion, or other similar request, shall be subm…

§ 11702. Applications (a) Upon receipt of an application subject to this section in the form prescribed by the Commissioner, the Commissioner shall determine whether the application is complete. The Commissioner shall have the power to request modifications in, and additional inf…

§ 11703. Hearings on applications; decisions; general good standard (a) The Commissioner may conduct public hearings on any application subject to this subchapter in his or her discretion. (b) After consideration of all relevant matters presented in the application, in any writte…

§ 12101. Application (a) Application. A corporation, limited liability company, limited partnership, limited liability partnership, or the organizers of the entity shall file with the Commissioner an application for permission to conduct business as an investor-owned financial in…

§ 12102. Issuance of certificate of general good; refusal to issue certificate of general good (a) Certificate of general good. The Commissioner shall determine whether or not a certificate of general good shall be granted to organize a financial institution under this chapter an…

§ 12103. Requirements to commence business; paid-in minimum capital; examination; certificate of authority (a) At the time the certificate of general good is issued, the Commissioner shall issue an order granting permission to organize that shall set forth the minimum amount of p…

§ 12104. Failure to commence business (a) If a financial institution authorized to commence business under this chapter does not commence business within two years from the filing of its organizational documents in the Office of the Secretary of State, its right to do business sh…

§ 12105. Continuance of organization The organizational documents shall provide for continuance of a financial institution despite the death, dissolution, departure, or incapacity of any investor. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)

§ 12201. Meetings (a) The governing body of a Vermont financial institution shall meet at least monthly, except as otherwise provided in this section. A governing body that has appointed an executive committee that meets during the months in which the governing body does not meet…

§ 12301. Bonds and insurance (a) The governing body of a Vermont financial institution shall direct and require good and sufficient fidelity bonds on all active officers, employees, and agents, whether or not they draw salary or compensation, which bonds shall provide for indemni…

§ 12401. Limitation; form (a) A Vermont financial institution may not authorize dividends, distributions, or withdrawals that reduce capital below the higher of the amount required under the certificate of general good or section 14104 of this title without the prior approval of …

§ 12501. Voluntary dissolution; procedure; criteria (a) An investor-owned Vermont financial institution shall submit to the Commissioner for approval a plan of dissolution or wind-up prior to filing its articles of dissolution under Title 11A or winding up its business under Titl…

§ 12601. Certain special purpose financial institutions authorized (a) In addition to universal financial institutions authorized under subchapters 1-5 of this chapter and under chapter 203 of this title, special purpose financial institutions may be established in this State, su…