Title 08, Title 08: Banking and Insurance

§ 32201. Deposit powers (a) Applicability. The provisions of subsection 14201(b) of this title governing deposit accounts shall apply to credit unions in the same manner as they apply to financial institutions as defined in subdivision 11101(32) of this title. (b) Insurance. A Ve…

§ 32202. Payment of deposits to administrators from another state or country The provisions of section 14202 of this title governing the payment of deposits to administrators from another state or country shall apply to credit unions in the same manner as they apply to financial …

§ 32203. Trust deposits; payment on death of trustee (a) When a deposit is made in a credit union by one or more persons in trust for another, the name and residence of the person for whom the deposit is made shall be disclosed, and the deposit shall be credited to the depositor …

§ 32204. Joint deposits (a) The provisions of section 14204 of this title governing joint deposits shall apply to credit unions in the same manner as they apply to financial institutions as defined in subdivision 11101(32) of this title. (b) A single joint share account may hold …

§ 32205. Payable on death accounts The provisions of section 14205 of this title governing payable on death accounts shall apply to credit unions in the same manner as they apply to financial institutions as defined in subdivision 11101(32) of this title. (Added 2005, No. 16, § 1…

§ 32206. Deposits of minors; exemption from trustee process The provisions of section 14206 of this title governing deposits of minors and exemption from trustee process shall apply to credit unions in the same manner as they apply to financial institutions as defined in subdivis…

§ 32207. Provisions when title to deposit is litigated The provisions of section 14207 of this title relating to when title to a deposit is litigated shall apply to credit unions in the same manner as they apply to financial institutions as defined in subdivision 11101(32) of thi…

§ 32208. Real estate trust and escrow The provisions of section 14210 of this title governing pooled real estate trust and escrow accounts shall apply to credit unions in the same manner as they apply to financial institutions as defined in subdivision 11101(32) of this title. (A…

§ 32209. Claims not clearly consistent The provisions of section 14211 of this title governing claims not clearly consistent with the terms of any applicable authority on file with the credit union shall apply to credit unions in the same manner as they apply to financial institu…

§ 32210. Lien; setoff The credit union shall have a lien on the shares, share certificates, deposits, deposit certificates, and accumulated dividends or interest of a member in an individual or joint account for any sum past due the credit union from said member or for any loan e…

§ 32211. Applicability of other laws The provisions of subsection 11501(c) (examination) and section 14212 (joint fiduciary accounts) of this title shall apply to credit unions in the same manner as they apply to financial institutions as defined in subdivision 11101(32) of this …

§ 32301. Loan authority (a) Unless otherwise restricted by applicable law, rule, or regulation, a credit union may lend to its members for such purposes as prescribed by the governing body. The governing body shall establish a written loan policy in accordance with the requiremen…

§ 32302. Real estate loans (a) Clear title. All loans secured by mortgages on real estate shall be supported by written evidence satisfactory to the credit union that title to the security is marketable, and the lien is valid and enforceable. A mortgage on lands subject to lease …

§ 32303. Credit cards The provisions of section 14303 of this title governing credit cards shall apply to credit unions in the same manner as they apply to financial institutions as defined in subdivision 11101(32) of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

§ 32401. Authority No credit union shall make member business loans unless it has complied with the provisions of this subchapter and such rules adopted by the Commissioner. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

§ 32402. Commissioner approval A credit union shall obtain the written approval of the Commissioner prior to engaging in the business of making member business loans. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

§ 32501. Participation loans (a) Subject to the provisions of this section, a credit union may participate in loans to credit union members jointly with other state or federally chartered credit unions, credit union organizations, or other federally insured financial institutions…

§ 32601. Failure to pay rent; removal of contents The provisions of section 14501 of this title governing safe deposit boxes shall apply to credit unions in the same manner as they apply to financial institutions as defined in subdivision 11101(32) of this title. (Added 2005, No.…

§ 32701. Organization of a credit union service organization (a) With the approval of the Commissioner, a credit union may establish a credit union service organization (CUSO) by itself or jointly with one or more other Vermont credit unions, federal credit unions, state-chartere…

§ 32702. Expansion of services A CUSO shall not expand its services without the prior written approval of the Commissioner. A CUSO shall file a written notice with the Commissioner setting forth its intention to expand its services, a description of the proposed expanded services…

§ 32703. Records, reports, and examination (a) A CUSO shall: (1) account for all transactions in accordance with generally accepted accounting principles; (2) prepare quarterly financial statements and obtain an annual opinion audit by a licensed certified public accountant on it…

§ 32704. Limitation on loans to and investments in a CUSO (a) A credit union may invest its funds in or make loans to a CUSO, provided the total of any such investment in or loan to any one CUSO does not exceed two percent of the total paid-in and unimpaired capital and surplus a…

§ 32705. Investing in, lending to, or joining an existing CUSO (a) Subject to the limitations of section 32704 of this title, a credit union may invest its funds in, join, or lend to an existing CUSO. The credit union shall file with the Commissioner prior written notice of its i…

§ 32706. Customer base A credit union may organize, invest in, or lend to a CUSO only if the credit union service organization primarily serves credit unions, its membership, or the membership of credit unions contracting with the CUSO. (Added 2005, No. 16, § 1, eff. July 1, 2005…

§ 32707. Bond Each credit union service organization and each of its directors, officers, managers, general partners, employees, and authorized agent of a CUSO who has charge or possession of the funds, securities, or other assets of such CUSO shall be bonded by a surety company …

§ 32708. Prohibited activities A CUSO shall not acquire control of, either directly or indirectly, another depository financial institution, nor invest in shares, stocks, or obligations of an insurance company, trade association, liquidity facility, or similar organization, corpo…

§ 32709. Separate entities (a) A credit union and a CUSO shall be operated in a manner that demonstrates to the public the separate existence of the credit union and the CUSO. (b) At the request of the Commissioner, the credit union shall provide to the Commissioner a written leg…

§ 32710. Suspension, liquidation, insolvency, conservation, involuntary merger, and appointment of directors and managing officers of a troubled CUSO A CUSO shall be subject to chapter 226 of this title governing suspension, liquidation, insolvency, conservation, involuntary merg…

§ 32711. Rules The Commissioner may adopt such additional rules governing CUSOs as the Commissioner deems appropriate. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 338, eff. July 1, 2022; 2023, No. 6, § 76, eff. July 1, 2023.)

§ 33101. Relocation of main office (a) With the approval of the Commissioner, a Vermont credit union may relocate its main office anywhere within the State to serve effectively its members. (b) The Commissioner, before granting an approval under subsection (a) of this section, sh…

§ 33102. In-State and out-of-State offices (a) A Vermont credit union shall not establish an office in this State or outside this State without the prior approval of the Commissioner in accordance with subsection 30801(b) of this title. (b) Prior to approving the credit union’s a…

§ 33103. Offices of state-chartered credit unions (a) A state credit union may, with the prior written approval of the Commissioner, establish one or more offices in this State, provided the laws of its home state authorizes under conditions no more restrictive than those imposed…

§ 33104. Supervisory agreements; costs of examinations (a) In implementing this chapter, the Commissioner may cooperate with credit union regulators in other states or jurisdictions and may share with the regulators the information received by the Commissioner to the extent neces…

§ 34101. Mergers (a) General. Any two or more credit unions may merge into one Vermont credit union in accordance with the procedures and subject to the conditions and limitations set forth in this chapter. (b) Adoption of plan. The governing body of each participating credit uni…

§ 34102. Merger of Vermont credit union with federal credit union (a) Nothing contained in the law of this State restricts the right of a credit union organized under this title to merge into a continuing federal credit union. The corporate action to be taken by the Vermont credi…

§ 34103. Effect of merger or conversion (a) Applicability. From and after the effective date of a merger or conversion, under chapter 224 or 225 of this title, the continuing credit union may conduct business in accordance with the terms of the plan as approved and in accordance …

§ 34104. Nonconforming activities; cessation (a) Applicability. If, as a result of a merger or conversion pursuant to this title, the continuing credit union is to be of a different type or of a different character than any one or all of the participating or converting institutio…

§ 35101. Conversions (a) General. The provisions of this chapter shall apply whenever a federal credit union seeks to convert to a Vermont credit union or whenever a Vermont credit union seeks to convert to a federal credit union; provided, however, that conversion from a Vermont…

§ 35102. Conversion of a credit union to a mutual financial institution or a cooperative financial institution (a) In addition to the provisions of chapter 206 of this title, a credit union may convert to a mutual or cooperative financial institution if all of the following are m…

§ 35103. Conversion of a mutual financial institution or a cooperative financial institution to a credit union Chapter 206 of this title shall govern the conversion of a mutual financial institution or a cooperative financial institution to a credit union. (Added 2005, No. 16, § …

§ 36101. Suspension, voluntary liquidation, and involuntary liquidation (a) Suspension. If it appears that any credit union is bankrupt or insolvent or that it has willfully violated this chapter or is operating in an unsafe or unsound manner, the Commissioner shall issue an orde…

§ 36102. Involuntary merger of credit union (a) Notwithstanding any other provision of law, the Commissioner may initiate the involuntary merger of a credit union that is insolvent or is in danger of insolvency or is operating in an unsafe or unsound manner with any other credit …

§ 36103. Conservatorship (a) The Commissioner may, ex parte without notice, appoint himself or herself or an insuring organization or any other person as conservator and immediately take possession and control of the business and assets of any credit union in any case in which: (…

§ 36104. Appointment of director and managing officers of troubled credit unions The Commissioner shall approve any director elected or appointed to serve on the governing body and any person appointed as the managing officer of a troubled credit union, before the director or off…