Title 08, Title 08: Banking and Insurance

§ 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…

§ 20101. Reorganization of a mutual or cooperative financial institution as a mutual holding company A Vermont mutual or cooperative financial institution may reorganize, under a plan of reorganization adopted by the financial institution and submitted to and approved by the Comm…

§ 20102. Procedure for adopting a plan of reorganization (a) Plan of reorganization. The plan of reorganization pursuant to which the reorganization is to be carried out, and the proposed amended organizational documents, shall be approved by the governing body of the mutual or c…

§ 20103. Retention of capital assets at holding company level With the approval of the Commissioner, the plan of reorganization of a mutual or cooperative financial institution may provide for the retention of capital assets at the mutual holding company level, provided such rete…

§ 20104. Effect of reorganization; ownership and governance (a)(1) The organizational existence of the reorganizing mutual or cooperative financial institution shall not terminate, and the mutual holding company resulting from the reorganization shall be deemed to be a continuati…

§ 20105. Chartering of mutual holding company subsidiary financial institution (a) Procedures. The procedures for the organization of a mutual holding company subsidiary financial institution shall be as prescribed in chapter 202 of this title, except that: (1) A majority of the …

§ 20106. Issuance of capital stock and debentures by reorganized savings financial institution A mutual holding company subsidiary financial institution may issue up to 49 percent of its voting common stock to persons other than the mutual holding company. Depositors of a mutual …

§ 30101. Definitions As used in this part: (1) “Chief executive officer” means the person appointed by the governing body to be in charge of the operations of the credit union, regardless of the title given to such person. (2) “Commissioner” means the Commissioner of Financial Re…

§ 30201. Administration Any state-chartered credit union organized or operating in Vermont shall be under the supervision of the Commissioner of Financial Regulation. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)

§ 30202. Fees and Department expenses The provisions of sections 18 and 19 of this title shall apply to credit unions in the same manner as they apply to financial institutions. Except for fees related to the formation of a credit union, formation of a credit union service organi…

§ 30203. Rules and regulations The Commissioner may adopt rules as may be necessary for the proper conduct of credit unions organized or operating under chapters 220–226 of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 319, eff. Ju…

§ 30301. Office hours (a) A credit union shall establish the days and hours its offices are open for business. The credit union’s governing body is responsible for determining the scope of operations of each office, including the services to be provided and the days and hours of …

§ 30302. Closing for cause A credit union may temporarily close any of its offices for reasons that include good cause, extreme weather conditions, and community events. If a credit union temporarily closes any of its offices for all or any part of a day it is normally open for b…

§ 30303. Emergency closing by credit union If an emergency arises or is so imminent and immediate as to interfere with or threaten the conduct of normal business transactions or the safety and welfare of a credit union’s plant, assets, or personnel, the credit union officer or of…

§ 30401. Preservation of records (a) A Vermont credit union and any state-chartered credit union with an office in this State shall keep such books, accounts, and records relating to all of its transactions that will enable the Commissioner to ensure full compliance with the laws…

§ 30501. Financial reports (a) The Commissioner shall require each credit union to submit a quarterly report of its condition within 30 days of the end of each calendar quarter in such manner and on such forms as the Commissioner may require. Reports shall be verified to be true,…

§ 30502. Periodic reports from state credit unions with an office or activity in this State (a) The Commissioner may require periodic reports from any state-chartered credit union that has established and maintains an office in this State or that conducts any activity in this Sta…

§ 30503. Exemption from annual report to Secretary of State Vermont credit unions shall not be required to make any annual report to the Vermont Secretary of State. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

§ 30601. Examinations (a) The Commissioner shall conduct a regular examination of the condition of each Vermont credit union at least once every three years or more frequently as the Commissioner deems prudent. (b) The Commissioner may at any time conduct a special examination or…

§ 30602. 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…

§ 30603. 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…

§ 30604. Examinations; cooperative agreements (a) To the extent consistent with section 30605 of this title, the Commissioner may make such examinations of any office established and maintained in this State by a state credit union as the Commissioner may deem necessary to determ…

§ 30605. 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…

§ 30701. Enforcement powers of Commissioner (a) The Commissioner may: (1) Restrict the withdrawal of share or deposit accounts from a Vermont credit union or a Vermont office of a state-chartered credit union when the Commissioner finds that extraordinary circumstances make the r…

§ 30702. Power of Commissioner to impose corrective action (a) The Commissioner may, in addition to any other powers exercisable by the Commissioner under the provisions of this title, require a Vermont credit union or state credit union with an office in this State to: (1) maint…

§ 30703. 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 as…

§ 30704. Indemnification A credit union shall not indemnify any person for any penalty or fine imposed under this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

§ 30705. 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 credit union and, to the e…

§ 30801. Application of subchapter (a) An application required to be filed under chapter 221, 224, or 225 of this title for the approval of the Commissioner, including an application for a charter, merger, acquisition, conversion, change in bylaws, change in organizational docume…

§ 30802. 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…

§ 30803. 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…