Title 08, Title 08: Banking and Insurance

§ 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…

§ 15101. Establishment of Vermont branches A Vermont financial institution shall not establish or maintain any branch in this State for the general transaction of its business without the approval of the Commissioner. The Commissioner shall approve the application for a branch un…

§ 15201. Establishment of branches outside Vermont (a) A Vermont financial institution may establish a branch in any state other than this State by merger, consolidation, acquisition, or as otherwise permitted by and in accordance with the laws of such host state and applicable f…

§ 15202. Establishment of branches in Vermont by financial institutions (a) A state financial institution, foreign bank, or national bank may establish a branch in this State pursuant to this section and in accordance with applicable state and federal financial institution laws. …

§ 15203. Foreign branches (a) A foreign bank not licensed by federal authorities to establish a federal branch in this State may transact business in this State only at a branch that is licensed by the Commissioner. The Commissioner may, upon receipt of an application of the fore…

§ 15204. Other activities (a) Subject to subsection (b) of this section, a financial institution having its principal office in a jurisdiction other than Vermont may maintain or conduct the following offices or activities in this State: (1) a temporary agency; (2) an office used …

§ 15205. Out-of-state activities by Vermont financial institutions (a) Subject to subsection (b) of this section, a Vermont financial institution may maintain or conduct the following offices or activities in another state: (1) a temporary agency; (2) an office used solely for in…

§ 15301. Branch sales, closings, and change of control (a) Sales. A Vermont financial institution that proposes to sell one or more of its branches shall file an application for a certificate of approval on a form prescribed by the Commissioner. Notwithstanding subsection 11701(b…

§ 16101. Conversions (a) General. The provisions of this chapter shall apply whenever a national financial institution seeks to convert to a Vermont financial institution or whenever a Vermont financial institution seeks to convert or amend its charter in order to change its char…

§ 17101. General provisions on mergers, share exchanges, consolidations, and acquisitions (a) The provisions of this chapter and Titles 11 and 11A govern mergers, consolidations, acquisition of assets, or assumption of liabilities undertaken by financial institutions subject to t…

§ 17201. Mergers and consolidations; investor-owned institutions (a) General. Any two or more investor-owned institutions may merge or consolidate into one investor-owned Vermont financial institution in accordance with the procedures, and subject to the conditions and limitation…

§ 17202. Merger of investor-owned institution with national financial institution (a) Nothing contained in the law of this State restricts the right of a financial institution organized under chapter 202 of this title to merge or consolidate into a resulting national financial in…

§ 17301. Mergers and consolidations; mutual or cooperative financial institutions (a) General. Two or more mutual or cooperative financial institutions may merge or consolidate into one financial institution organized under chapter 203 of this title in accordance with the procedu…

§ 17401. Mergers and consolidations; investor-owned and mutual or cooperative financial institutions (a) Resulting mutual or cooperative financial institution. An investor-owned financial institution may be merged into or consolidated with a mutual or cooperative financial instit…

§ 17501. Acquisition of assets (a) General. A Vermont financial institution may acquire the assets of, or assume the liabilities of, any other financial institution authorized to do business in this State. When the value of an acquisition or assumption is worth 25 percent or more…

§ 17502. Assumption of liabilities (a) Assumption of liabilities. Subject to the approval of the Commissioner, any Vermont financial institution may, by contract, assume all or any part of the deposit and other liability of any other financial institution or financial institution…

§ 17601. Change in control (a) The applicant in any acquisition application filed under the federal Bank Change in Control Act, the federal Savings and Loan Holding Company Act, or the Bank Holding Company Act by a holding company that controls a Vermont financial institution or …

§ 18101. Effect of merger, share exchange, consolidation, conversion, or acquisition (a) Applicability. From and after the effective date of a merger, including a share exchange, consolidation, conversion, or acquisition, under chapter 205, 206, or 207 of this title, the resultin…

§ 18201. Nonconforming activities; cessation (a) Applicability. If, as a result of a merger, consolidation, conversion, or acquisition pursuant to this title, the resulting institution is to be of a different type or of a different character than any one or all of the participati…

§ 19101. Applicability to Vermont financial institutions; independent trust companies; state financial institutions (a) The provisions of subchapters 1 through 4 of this chapter apply to Vermont financial institutions. The provisions of subchapters 2, 3, and 4 of this chapter sha…

§ 19102. Governor’s proclamation Whenever it appears to the Governor that the public welfare and the equal protection of depositors in Vermont financial institutions doing business in this State require it, he or she may proclaim such bank holidays as in his or her judgment are n…

§ 19103. Business restricted During holidays and subject to the provisions of the proclamation, the Commissioner, in addition to all other powers conferred by law, may order any Vermont financial institution to restrict all or any part of its business, and to limit or postpone fo…

§ 19104. Restrictions continued after holidays After those holidays, the order may be continued in effect as to any particular financial institution if, in the opinion of the Commissioner, circumstances warrant or require the continuance and the Governor approves. (Added 1999, No…

§ 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…