Title 08, Title 08: Banking and Insurance

§ 2204b. Testing of mortgage loan originators (a) An individual applying for a mortgage loan originator license shall pass, in accordance with the standards established under this section, a qualified written test developed by the Nationwide Multistate Licensing System and Regist…

§ 2204c. Continuing education for mortgage loan originators (a) In order to meet the annual continuing education requirements, a licensed mortgage loan originator shall complete at least eight hours of education approved in accordance with subsection (b) of this section, which sh…

§ 2204d. Mortgage loan originator license inactive status The license of a mortgage loan originator that has satisfied all of the requirements of licensure, other than being employed by a licensed lender or licensed mortgage broker, may be placed in an approved inactive status. (…

§ 2208a. Mortgage loan originator change of employer or sponsor (a) No mortgage loan originator may be employed, supervised, and sponsored by more than one licensed lender or licensed mortgage broker operating in this State. Alternatively, a mortgage loan originator may be an ind…

§ 2216. Mortgage lending; specific requirements; exceptions Every licensee engaging in the making of loans secured by a lien against real estate located in this State, whether conducting its affairs as an agent or principal and whether operating from facilities within the State o…

§ 2217. Mortgage brokers (a) No licensee or other person shall act as a mortgage broker in any transaction in which the licensee or such other person is acting as a mortgage lender. (b) Each mortgage broker required to be licensed under this chapter shall retain for a minimum of …

§ 2218. Segregated accounts (a) All permitted charges paid by loan applicants or borrowers to a lender or a mortgage broker subject to this chapter shall be deposited in one or more accounts maintained at a bank approved by the Commissioner, and with respect to such funds the len…

§ 2219. Contract required of mortgage broker (a) In advance of taking any fee or collecting any charges or at the time the prospective borrower submits a signed application, a written agreement in a form approved by the Commissioner shall be prepared by the mortgage broker and sh…

§ 2220. Disclosure required by mortgage lender In advance of taking any fee or collecting any charges for a mortgage loan, or at the time the prospective borrower submits a signed application, a written disclosure shall be provided by the lender to the prospective borrower settin…

§ 2220a. Disclosure required by loan solicitation licensee Each loan solicitation licensee shall include clearly and conspicuously in all advertisements of loans and solicitations of leads, the following statement: THIS IS A LOAN SOLICITATION ONLY. [INSERT LICENSEE NAME] IS NOT T…

§ 2221. Out-of-state mortgage loans A mortgage loan made outside Vermont for use outside Vermont shall be deemed to be made outside the state of Vermont and shall not be subject to this chapter except upon written agreement of the borrower and the licensee. (Added 1995, No. 162 (…

§ 2222. Examinations The Commissioner shall examine the affairs, business, and records of each licensee under this chapter, other than a loan solicitation company, at least once every three years. The Commissioner shall examine the affairs, business, and records of each loan soli…

§ 2223. Additional records required of loan solicitation licensees (a) In addition to any records required by section 2119 of this title, a licensee that engages in loan solicitation activity shall maintain the following records for not less than seven years: (1) copies of all so…

§ 2225. Statement of rates of charge Rates of charge shall be stated fully and clearly in such manner as necessary to prevent misunderstanding thereof by prospective borrowers. (Amended 1995, No. 162 (Adj. Sess.), § 26, eff. Jan. 1, 1997.)

§ 2227. Conduct of unrelated business No licensee shall conduct the business of making noncommercial loans under this chapter within any office, room, or place of business in which any other business is solicited or engaged in, or in association or conjunction therewith, except a…

§ 2229. Confessions of judgment; powers of attorney; contents of notes No licensee shall take any confession of judgment. No licensee shall take any power of attorney excepting such as may be incorporated in a form of note approved by the Commissioner for use in the financing of …

§ 2230. Rate of interest (a) Every licensee may charge, contract for, and receive thereon interest, calculated according to the actuarial method as set forth in 9 V.S.A. § 41a(d), not exceeding the rates permitted by 9 V.S.A. chapter 4, except that the rate of interest on loans s…

§ 2231. Contracts to be repayable in monthly installments; maximum term; additional charges prohibited; invalidity of loan contract (a) Except for loans made pursuant to section 2216 of this title and in compliance with applicable regulations of the Commissioner, all loan contrac…

§ 2232a. Requirements regarding the borrower (a) Each licensed lender shall deliver to the borrower at the time any loan is made a statement showing in clear and distinct terms the amount and date of the loan and of its maturity, the nature of the security, if any, for the loan, …

§ 2233. Charges; loan solicitation; specialized financing (a) Other than a mortgage broker fee pursuant to section 2219 of this title, no person who is required to be licensed under this chapter, shall directly or indirectly charge, contract for, or receive any interest, discount…

§ 2234. Assignment of wages The payment in money, credit, goods, or things in action, as consideration for any sale or assignment of, or order for, the payment of wages, salary, commissions, or other compensation for services, whether earned or to be earned, for the purpose of re…

§ 2235. Requirements for assignment of wages No assignment of or order for payment of any salary, wages, commissions, or other compensation for services, earned or to be earned, given to secure any loan made by any licensee under this chapter, shall be valid unless the amount of …

§ 2236a. Extent of assignment; service upon employer Under any such assignment or order for the payment of future salary, wages, commissions, or other compensation for services given as security for a loan made by any licensee under this chapter, a sum not to exceed 10 percent of…

§ 2238. Out-of-state commercial loans A commercial loan made to a borrower located outside Vermont for use outside Vermont shall be deemed to be made outside the State of Vermont and shall not be subject to this chapter except upon written agreement of the licensee and borrower. …

§ 2239. Commercial leases This chapter shall not apply to commercial leases as defined in 9 V.S.A. chapters 59 and 61. (Added 1989, No. 122, § 1.)

§ 2241. Prohibited acts and practices It is a violation of this chapter for a person or individual to: (1) directly or indirectly employ any scheme, device, or artifice to defraud or mislead borrowers or lenders or to defraud any person; (2) engage in any unfair or deceptive prac…

§ 2244. Unique identifier shown (a) The unique identifier issued by the Nationwide Mortgage Licensing System and Registry of any person originating a residential mortgage loan shall be clearly shown on all residential mortgage loan application forms, solicitations, or advertiseme…

§ 2245. Pension loans Any person who engages in the business of offering consideration in exchange for a secured interest in all or part of pension proceeds in the possession of a participant, beneficiary, or member of a pension plan, program, or system shall be deemed to be enga…

§ 2251. Definitions As used in this chapter: (1) “Charges” means the amount a consumer owes to a company in addition to the funded amount and includes an administrative fee, origination fee, underwriting fee, processing fee, and any other fee regardless of how the fee is denomina…

§ 2252. Registration; financial stability (a) A company shall not engage in the business of consumer litigation funding without first filing a registration with the Commissioner on a form prescribed by the Commissioner and submitting a registration fee and proof of financial stab…

§ 2253. Contracts; disclosures and requirements (a) A contract shall be written in a clear and coherent manner using words with common, everyday meanings to enable the average consumer who makes a reasonable effort under ordinary circumstances to read and understand the terms of …

§ 2254. Prohibited acts (a) A consumer litigation funding company shall not engage in any of the following conduct or practices: (1) Pay or offer to pay commissions, referral fees, or any other form of consideration to any attorney, law firm, health care provider, health care fac…

§ 2255. Effect of communication on privileges A communication between a consumer’s attorney and the company shall not be discoverable or limit, waive, or abrogate the scope or nature of any statutory or common-law privilege, including the work-product doctrine and the attorney-cl…

§ 2256. Examinations For the purpose of protecting consumer interests and determining a company’s financial stability and compliance with the requirements of this chapter, the Commissioner may conduct an examination of a company engaged in the business of consumer litigation fund…

§ 2259. Violations an unfair or deceptive act (a) A company’s failure to comply with the requirements of this part, including this chapter, shall constitute an unfair or deceptive act in commerce enforceable under 9 V.S.A. chapter 63, the Consumer Protection Act. (b) The powers v…

§ 2260. Annual reports (a) Annually, on or before April 1, each company registered under this chapter shall file a report with the Commissioner under oath and in the form and manner prescribed by the Commissioner. In addition to information required by section 2120 of this title,…

§ 2401. Definitions As used in this chapter: (1) “Act as fiduciary” or “acting as a fiduciary” means to: (A) accept or execute trusts, including to: (i) act as trustee under a written agreement; (ii) receive money or other property in its capacity as trustee for investment in rea…

§ 2402. Authority to organize; powers; limitations; prohibitions; exemptions (a) A company organized in this State may form an independent trust company in accordance with the provisions of this chapter. A company shall obtain a certificate of authority from the Commissioner befo…

§ 2403. Formation (a) One or more persons may form an independent trust company in accordance with the provisions of this chapter. (b) The organizers forming an independent trust company shall apply to the Commissioner for a certificate of authority on prescribed forms containing…

§ 2404. Name; multiple locations (a) An independent trust company shall file any name proposed to be used in connection with a trust business or establishing a principal office or trust office in this State pursuant to this chapter. The Commissioner shall not approve a proposed n…

§ 2405. Periodic reports; examinations; cooperative agreements (a) The Commissioner may require reports from any independent trust company doing a trust business in this State, containing such information, including on its financial condition, at such times and in such format as …

§ 2406. Reciprocity (a) An independent trust company organized under the laws of a jurisdiction other than Vermont shall be authorized to engage in a trust business in this State, to the same extent and under the same conditions that an independent trust company formed in this St…

§ 2407. Discontinuing trust business; merger and consolidation; sale of trust business; change in control (a) Discontinuance. An independent trust company that intends to discontinue its trust business in this State shall furnish notice to the Commissioner of its intention not le…

§ 2408. Laws applicable; matters of contract (a) An independent trust company exercising trust powers under this chapter shall be subject to the same responsibilities, liabilities, and penalties as an individual acting in like capacity, and the company shall have the same powers …

§ 2409. Financial transactions (a) No assets held in a fiduciary capacity shall be mingled with the investments of the independent trust company or be liable for the debts or obligations of the independent trust company. Independent trust companies shall keep all monies, property…

§ 2410. Powers of the Commissioner (a) In addition to other powers conferred by this chapter, the Commissioner may: (1) Restrict the transaction of any trust account when the Commissioner finds that extraordinary circumstances make the restriction necessary for the proper protect…