reglab/statecodes huggingface dataset:
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32201. Deposit powers

§ 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 Vermont credit union that accepts deposits or an office of a state-chartered credit union authorized to do business in this State shall not accept deposits in this State unless the credit union has insurance with the National Credit Union Administration or the successor to that federal agency.
(c) Cash reserve on deposits and accounts. A credit union shall maintain reserves on deposits or accounts as required from time to time by the Federal Reserve Act, as amended, and any regulations adopted pursuant to the Act. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 334, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32202. Payment of deposits to administrators from another state or country

§ 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 institutions as defined in subdivision 11101(32) of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32203. Trust deposits; payment on death of trustee

§ 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 or depositors as trustee for such person.
(b)(1) The credit union may accept deposits:
(A) in the name of a member in trust for a member beneficiary;
(B) in the name of a member in trust for a nonmember beneficiary; or
(C) in the name of a nonmember trustee for a beneficiary who is a member.
(2) No beneficiary or trustee, unless a member in his or her own right, shall be permitted to vote, obtain loans, or hold office, or be required to pay an entrance or membership fee.
(c) When other notice of the existence and terms of a legal trust is not given in writing to the credit union, at the death of the trustee, or if there is more than one trustee, at the death of the surviving trustee, the deposit or any part thereof, with the interest thereon, may be paid to the person for whom the deposit was made or to his or her estate. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32204. Joint deposits

§ 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 more than one membership share, supporting membership for more than one member of the credit union. If more than one joint owner seeks credit union membership through the joint account, the joint account must contain a membership share for each member. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32205. Payable on death accounts

§ 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, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32206. Deposits of minors; exemption from trustee process

§ 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 subdivision 11101(32) of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32207. Provisions when title to deposit is litigated

§ 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 this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32208. Real estate trust and escrow

§ 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. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32209. Claims not clearly consistent

§ 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 institutions as defined in subdivision 11101(32) of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32210. Lien; setoff

§ 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 endorsed by such member. The credit union shall also have a right of immediate setoff with respect to every such account. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32211. Applicability of other laws

§ 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 title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32302. Real estate loans

§ 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 under which rents are reserved to the owner, with all of the owner’s rights and options under the lease collaterally assigned to the credit union as security or a mortgage upon lands impressed with a public use, sometimes known as lease, society, or glebe lands, but held under a durable lease, shall not be deemed to be subordinate to such lease or public use.
(b) Appraised value. The appraisal of real estate securing a real-estate-related transaction entered into by a credit union shall comply with Part 722 of the National Credit Union Administration regulations, as amended from time to time.
(c) Servicing of loans. A credit union may contract with another credit union, corporation, or association whose transactions are in whole or in part the handling and servicing of mortgage loans to handle and service loans in its behalf. Whenever such a contract is made, the credit union shall not lose or suffer any impairment of any right of deduction or offset it might have against anyone liable for the mortgage debt.
(d) Home loan escrow accounts. Any credit union that requires a home loan escrow account to be established and maintained by a borrower shall follow the provisions of section 10404 of this title.
(e) Loans insured or guaranteed by federal law. Any mortgage on real estate given to secure a loan insured or guaranteed by the federal housing commissioner, the administrator of veterans’ affairs, or the administrator of the Small Business Administration under the National Housing Act, the Servicemen’s Readjustment Act of 1944, or the Small Business Act, respectively, as amended, shall not be subject to the provisions of any law of this State prescribing the nature, amount, or form of security, or manner of repayment, or requiring security upon which loans or advances of credit may be made, or prescribing or limiting the period or principal amount of which loans may be made, or prescribing or limiting the interest that may be charged or other charges that may be made or taken upon any loan or advance of credit. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 336, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32303. Credit cards

§ 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.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32601. Failure to pay rent; removal of contents

§ 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. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32701. Organization of a credit union service organization

§ 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-chartered credit unions, or other federally insured depository institutions within or outside this State. The establishing credit union shall file an application with the Commissioner, which application shall include a description of the services to be engaged in by the CUSO, an explanation of how the proposed services are related to credit union services, the application fee, and any other information that the Commissioner may require.
(b) A CUSO shall be organized as a corporation or as a limited liability company and the potential exposure of each credit union shall be no more than the amount of funds invested in or lent to the CUSO by such credit union. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32702. Expansion of services

§ 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, an explanation of how the proposed expansion is related to credit union services, and any other information that the Commissioner may require. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32703. Records, reports, and examination

§ 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 its financial statements in accordance with generally accepted auditing standards;
(3) preserve all of its books and records in accordance with rules adopted by the Commissioner applicable to credit unions;
(4) provide the Commissioner with complete access to its books, records, and internal controls for review, evaluation, and examination;
(5) provide such additional audits and reports as requested by the Commissioner; and
(6) pay the actual cost of any review, evaluation, or examination conducted by the Commissioner.
(b) As frequently as the Commissioner deems appropriate or necessary, the Commissioner may conduct an examination of the records and books of a CUSO in which a credit union has invested or to which it has lent funds or that was organized by a credit union. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 337, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32704. Limitation on loans to and investments in a CUSO

§ 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 and share deposits as of its last calendar year-end financial report of the credit union without regard to the amount derived from the profitability of such CUSO.
(b) As used in subsection (a) of this section:
(1) paid-in and unimpaired capital and surplus means shares plus postclosing, undivided earnings (this does not include regular reserves or special reserves required by law, regulation, or special agreement between the credit union and its regulator or share insurer); and
(2) total investments in and total loans to CUSO will be measured consistent with generally accepted accounting principles.
(c) If the Commissioner determines that a credit union’s investments in or loans to any CUSO exceed the limitations of this section or are otherwise not prudent for the credit union to maintain, the Commissioner may require the credit union to divest such loans or investments. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32705. Investing in, lending to, or joining an existing CUSO

§ 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 intention to make such investment in or loan to an existing CUSO.
(b) Prior to investing in or lending to an existing CUSO, a credit union shall:
(1) obtain a written agreement that the CUSO will:
(A) account for all transactions in accordance with generally accepted accounting principles;
(B) prepare quarterly financial statements and obtain an annual opinion audit by a licensed certified public accountant on its financial statements in accordance with generally accepted auditing standards;
(C) provide the Commissioner with complete access to all books and records of the CUSO and with the ability to review CUSO internal controls, as the Commissioner deems necessary; and
(D) pay the actual cost of any examination conducted by the Commissioner; and
(2) obtain a written legal opinion that the CUSO is established as a corporation or a limited liability company and that the potential exposure of the credit union is limited to no more than the loss of funds invested in or lent to the CUSO. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32706. Customer base

§ 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.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32707. Bond

§ 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 authorized to do business in this State. Such bond shall be in favor of the CUSO and in such amount as is approved by the governing body of the CUSO. The Commissioner may require the amount of the bond to be increased. A copy of each bond and any renewal thereof shall be promptly filed with the Commissioner. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32708. Prohibited activities

§ 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, corporation, or association. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32709. Separate entities

§ 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 legal opinion of counsel as to whether the CUSO is established in a manner that will limit potential exposure of the credit union to no more than the loss of funds invested in, or lent to, the CUSO. The legal opinion shall address factors that have led courts to “pierce the corporate veil” such as inadequate capitalization, lack of separate corporate identity, common boards of directors and employees, control of one entity over another, and lack of separate books and records. Independent legal counsel of the investing credit union or the CUSO may provide the legal opinion. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32710. Suspension, liquidation, insolvency, conservation, involuntary merger, and appointment of directors and managing officers of a troubled CUSO

§ 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 merger, and appointment of directors and managing officers of a troubled CUSO. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32711. Rules

§ 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.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 223 - Offices, Out-of-State Offices, and Offices of State Credit Unions › § 33101. Relocation of main office

§ 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, shall consider:
(1) the field of membership to be served by the proposed relocation of the main office;
(2) the adequacy of the current main office;
(3) the economic need for and cost of the proposed relocation; and
(4) the convenience and necessity to the field of membership of the proposed relocation. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 223 - Offices, Out-of-State Offices, and Offices of State Credit Unions › § 33102. In-State and out-of-State offices

§ 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 application to establish an office in this State or outside this State, the Commissioner must find that:
(1) establishment of the proposed office is consistent with the safety and soundness of the credit union;
(2) establishment of the proposed office is consistent with the credit union’s field of membership;
(3) the credit union has a record of compliance with the requirements of applicable State and federal law; and
(4) in the case of an out-of-State office, the laws of such other state authorize the establishment of such office. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 339, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 223 - Offices, Out-of-State Offices, and Offices of State Credit Unions › § 33103. Offices of state-chartered credit unions

§ 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 by the laws of this State, as determined by the Commissioner, a Vermont credit union to establish an office in that state. Prior to approving the state credit union’s application to establish an office in this State, the Commissioner must find that such state credit union:
(1) is financially solvent;
(2) maintains bonds and share insurance as required under chapter 221, subchapter 6 of this title;
(3) is effectively examined and supervised by an official of the state in which it is chartered; and
(4) is in compliance with the requirements set forth in subsection 33102(b) of this title.
(b) The Commissioner may examine and supervise the Vermont offices of any state credit union and may enter into agreements with other state credit union regulators concerning such examinations or supervision.
(c) To the extent federal law does not preempt the same, no state credit union may conduct business in this State unless it:
(1) charges interest in compliance with the provisions of 9 V.S.A. chapter 4 when making loans in this State;
(2) complies with the consumer protection statutes and rules applicable to Vermont credit unions;
(3) agrees to furnish the Commissioner with a copy of the examination report conducted by its regulatory agency or to submit to an examination by the commissioner; and
(4) designates and maintains an agent for the service of process in this State.
(d) The Commissioner may, after giving notice and an opportunity to be heard to any state credit union, revoke or suspend the approval given to such state credit union to establish an office in this State for any reason that would be sufficient grounds to deny an application to establish an office in this State.
(e) The Commissioner may revoke the approval of a state credit union conducting business in this State if the Commissioner finds that:
(1) The state credit union no longer meets the requirements of this section.
(2) The state credit union has violated the laws of this State or lawful rules or orders issued by the Commissioner.
(3) The state credit union has engaged in a pattern of unsafe or unsound credit union practices.
(4) Continued operation by the state credit union is likely to have a substantially adverse impact on the financial, economic, or other interests of residents of this State.
(5) The state credit union is prohibited from operating in its home state. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 340, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 223 - Offices, Out-of-State Offices, and Offices of State Credit Unions › § 33104. Supervisory agreements; costs of examinations

§ 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 necessary to supervise and regulate the credit union.
(b) The Commissioner may enter into supervisory agreements with a state credit union and its regulators to prescribe the applicable laws governing the powers and authorities of Vermont offices of the state credit union.
(c) The agreements may address, but are not limited to, corporate governance and operational matters. The agreements may resolve any conflict of laws and specify the manner in which the examination, supervision, and application processes must be coordinated with the regulators.
(d) The Commissioner may adopt rules for the periodic examination and investigation of the affairs of a state credit union operating in this State. The costs of examination and supervision must be fully borne by the state credit union. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 224 - Merger and Acquisition › § 34102. Merger of Vermont credit union with federal credit union

§ 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 credit union and its rights and liabilities and those of its members are the same as those prescribed in section 34101 of this title, except that approval of the Commissioner is not required.
(b) Upon the effective date of the merger, the authority of the participating Vermont credit union shall terminate automatically. The continuing federal credit union shall notify the Secretary of State of the termination. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 224 - Merger and Acquisition › § 34104. Nonconforming activities; cessation

§ 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 institutions, such continuing credit union shall be subject to the conditions and limitations as set forth in this chapter.
(b) Plan for termination. The plan of merger or conversion shall set forth the method and schedule for terminating those activities not permitted by the laws of this State for the continuing credit union, but that were authorized for any of the participating or converting institutions.
(c) Effective date. The plan of merger or conversion shall state that from the effective date of such action, the continuing credit union shall not engage in any nonconforming activities, except to the extent necessary to fulfill obligations existing prior to merger or conversion, pursuant to subsection (d) of this section.
(d) Compliance with limitations. If, as a result of such merger or conversion, the continuing credit union exceeds any lending, investment, or other limitations imposed by this title, it shall conform to such limitations within such period of time as shall be established by the Commissioner.
(e) Divestiture. The Commissioner may, as a condition to such merger or conversion, require a nonconforming activity to be divested in accordance with such additional requirements as he or she may deem appropriate under the circumstances. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 225 - Conversions › § 35103. Conversion of a mutual financial institution or a cooperative financial institution to a credit union

§ 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, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 226 - Suspension, Liquidation, Insolvency, Conservation, Involuntary Merger, and Directors and Managing Officers of a Troubled Credit Union › § 36102. Involuntary merger of credit union

§ 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 union or may authorize a credit union to purchase any of the assets of or assume any of the liabilities of any other credit union that is insolvent or in danger of insolvency or is operating in an unsafe or unsound manner if the Commissioner is satisfied that:
(1) an emergency requiring expeditious action exists with respect to such other credit union;
(2) other alternatives are not reasonably available; and
(3) the public interest would best be served by approval of such merger, consolidation, purchase, or assumption.
(b) The credit union may request a stay of the involuntary merger by appealing to the Washington Superior Court.
(c)(1) Notwithstanding any other provision of law, the Commissioner may authorize an institution whose deposits or accounts are insured to purchase any of the assets of or assume any of the liabilities of a credit union that is insolvent or in danger of insolvency or is operating in an unsafe or unsound manner.
(2) For purposes of the authority contained in this section, insured share and deposit accounts of the credit union may, upon consummation of the purchase and assumption, be converted to insured deposits or other comparable accounts in the acquiring institution, and the Commissioner and the insuring organization shall be absolved of any liability to the credit union’s members with respect to those accounts.
(d) Notwithstanding any other provision of law, the Commissioner may waive the need for a membership vote of both the acquired and continuing credit union to approve the involuntary merger and may waive the requirement that the governing body of the acquired credit union approve the involuntary merger. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 226 - Suspension, Liquidation, Insolvency, Conservation, Involuntary Merger, and Directors and Managing Officers of a Troubled Credit Union › § 36104. Appointment of director and managing officers of troubled credit unions

§ 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 officer takes office. As used in this section, “troubled credit union” means any credit union that, in the opinion of the Commissioner:
(1) is insolvent or is in danger of becoming insolvent;
(2) is not likely to be able to meet the demands of its members or to pay its obligations in the normal course of business or is likely to incur losses that may deplete all or substantially all of its capital; or
(3) is being operated in an unsafe and unsound manner. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 1 - Money of Account › § 1. Dollar, cent, and mill

§ 1. Dollar, cent, and mill
The money of account in the State shall be the dollar, cent, and mill; and accounts in public offices and proceedings in court shall be in conformity herewith; but this section shall not affect an account, charge, or entry originally made or a contract expressed in other money of account, but the same shall be reduced to dollars and parts of a dollar in an action thereon.
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 42. Permitted charges

§ 42. Permitted charges
(a) Except for interest as provided in this chapter, a lender shall make no charges against a borrower for the use or forbearance of money other than:
(1) the reasonable cost of credit investigation and appraisal fees;
(2) the reasonable cost of title evidence, including abstracts, legal opinions, or title insurance;
(3) the reasonable cost of protection against insurable hazards;
(4) the reasonable cost of creditor life or disability insurance, or of a debt protection agreement as set forth in 8 V.S.A. § 10405, if agreed to by the borrower;
(5) the filing and recording fees, and other official fees, including fees required by Federal Housing Agencies, the Federal Home Loan Mortgage Corporation, and the Federal National Mortgage Corporation;
(6) the reasonable value of services rendered in connection with the making of any loan of $4,000.00 or less or any loan or loan commitment of any amount or manner of payment to finance an income producing business or activity subject to such rules as the Commissioner of Financial Regulation adopts;
(7) the reasonable cost of private mortgage guaranty insurance subject to such limitation as the Commissioner of Financial Regulation has approved; and
(8) the reasonable fees associated with a credit card, agreed upon by the lender and borrower, including late charges and over-limit charges.
(b) A borrower may procure an opinion and abstract of title from an attorney of his or her choice acceptable to the lender, or hazard insurance in a company or in companies of his or her choice acceptable to the lender, and in such cases the lender’s acceptance shall not be unreasonably withheld. (Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended 1969, No. 66, § 2, eff. April 17, 1969; 1973, No. 222 (Adj. Sess.), § 5, eff. April 3, 1974; 1975, No. 216 (Adj. Sess.), § 4, eff. March 27, 1976; 1979, No. 173 (Adj. Sess.), § 13, eff. April 30, 1980; 1985, No. 36, § 3; 1989, No. 225 (Adj. Sess.), § 25; 1995, No. 9, § 2; 1995, No. 180 (Adj. Sess.), § 38; 2005, No. 70, § 3; 2021, No. 20, § 9.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 43. Deposit requirement prohibited; exception

§ 43. Deposit requirement prohibited; exception
A lender shall not, as a condition to granting or extending a loan, require a borrower to keep or place any sum on deposit with the lender or nominee of the lender, except for deposit arrangements directly related to secured credit cards in a manner consistent with rules adopted by the Commissioner, rules that shall include disclosure requirements, and specific types of alternative mortgages approved by the Commissioner as provided in 8 V.S.A. § 1256. Any deposit arrangement permitted under this section shall not result in an effective interest rate that exceeds legal rates established in 9 V.S.A. § 41a. (Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended 1977, No. 184 (Adj. Sess.), § 2; 1995, No. 9, § 3; 2023, No. 32, § 5, eff. July 1, 2023.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 44. Certain charges not usurious

§ 44. Certain charges not usurious
Agreements to maintain with the lender non-interest bearing reserves or deposits with which to pay when due taxes and insurance premiums, or agreements clearly set forth in the loan contract for the payment of reasonable delinquency or deferral charges, shall not be construed to be interest or a prohibited charge within the meaning of this chapter. (Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 46. Exceptions

§ 46. Exceptions
Section 43 of this title, relating to deposit requirements, and section 45 of this title, relating to prepayment penalties, shall not apply and the parties may contract for a rate of interest in excess of the rate provided in section 41a of this title in the case of:
(1) obligations of corporations, including municipal and nonprofit corporations; or
(2) obligations incurred by any person, partnership, association, or other entity to finance in whole or in part income-producing business or activity, but not including obligations incurred to finance family dwellings of four units or fewer when used as a residence by the borrower or to finance real estate that is devoted to agricultural purposes as part of an operating farming unit when used as a residence by the borrower; or
(3) obligations to finance the purchase, construction, or improvement of property for seasonal or part-time occupancy and not as a place of legal residence; or
(4) obligations guaranteed or insured by the United States of America or any agency thereof. (Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended 1969, No. 66, § 3, eff. April 17, 1969; 1973, No. 222 (Adj. Sess.), § 6, eff. April 3, 1974; 1975, No. 216 (Adj. Sess.), § 5, eff. March 27, 1976; 2009, No. 134 (Adj. Sess.), § 24i.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 47. Application of payments

§ 47. Application of payments
(a) On a note, bill, or other similar obligation, payable on demand or at a specified time, with interest, when a payment is made, the payment shall be applied: first, to liquidate the interest accrued at the time of the payment; and second, to extinguish the principal.
(b) Notwithstanding any other provision of this chapter to the contrary, payments shall be applied to interest, principal, and escrow charges, if any, before any portion of the payment is applied to late fees, delinquency charges, deferral charges, or any similar fees or charges. (Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended 2019, No. 20, § 104.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 48. Excess insurance, proceeds

§ 48. Excess insurance, proceeds
If a loan is paid before its due date as the result of the death of a borrower insured under a creditor life insurance policy and the insurance proceeds exceed the amount owing on the loan with interest, the excess shall be refunded to a beneficiary designated by the borrower, or to the estate of the insured, or applied in reduction of the debt. (Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 49. Computation of interest

§ 49. Computation of interest
When a note, bill, or other similar obligation is payable on demand or at a specified time, with interest annually, the annual interest that remains unpaid shall bear simple interest from the time it becomes due to the time of final settlement; but if in a year, reckoning from the time the annual interest began to accrue, payments are made, the amount of those payments at the end of that year, with interest thereon from the time of payment, shall be applied: first, to liquidate the simple interest accrued from the unpaid annual interest; second, to liquidate the annual interest due; and third, to extinguish the principal. (Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 50. Penalties

§ 50. Penalties
(a) When a greater rate of interest than is allowed by law is paid, the person paying it may recover the amount so paid above the legal interest, with interest thereon from the time of payment and all expenses of collection, including reasonable attorney’s fees, in a civil action on this statute.
(b) Except as otherwise expressly authorized by law, a lender shall not knowingly or willfully make any contract, express or implied, that directly or indirectly calls for the payment of any interest or finance charge in excess of the legal rate as set forth in section 41a of this title. The section shall be enforceable only to the extent herein provided and the lender shall have no right to collect any interest or charges whatsoever and shall have a right to collect only one-half of the principal.
(c) Any person, partnership, association, or corporation and the several members, officers, directors, agents, and employees thereof, who knowingly or willfully contracts for or collects any sum in excess of legal interest for the loan, use, or forbearance of money, unless expressly authorized by law to do so, shall, for the first offense, be fined not more than $500.00 or imprisoned for not more than six months, or both. Upon conviction for violating this section in any transaction entered into or consummated after a first conviction hereunder, the offender shall be fined not more than $1,000.00 or imprisoned for not more than one year, or both. (Added 1967, No. 377 (Adj. Sess.), eff. March 26, 1968; amended 1979, No. 173 (Adj. Sess.), § 14, eff. April 30, 1980.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 101. Borrower’s notice

§ 101. Borrower’s notice
A demand note shall contain on its face the following notice in a size equal to at least 10-point bold type:
NOTICE TO BORROWER: THIS IS A DEMAND NOTE AND SO MAY BE COLLECTED BY THE LENDER AT ANY TIME. A NEW NOTE MUTUALLY AGREED UPON AND SUBSEQUENTLY ISSUED MAY CARRY A HIGHER OR LOWER RATE OF INTEREST. (Added 1975, No. 106, § 3.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 102. Co-signer’s notice

§ 102. Co-signer’s notice
If a lender requires the signature of an obligor jointly and severally the instrument evidencing the obligation shall contain on its face the following notice, conspicuously placed, in a size equal to at least 10-point bold type:
NOTICE TO CO-SIGNER: YOUR SIGNATURE ON THIS NOTE MEANS THAT YOU ARE EQUALLY LIABLE FOR REPAYMENT OF THIS LOAN. IF THE BORROWER DOES NOT PAY, THE LENDER HAS A LEGAL RIGHT TO COLLECT FROM YOU. (Added 1975, No. 106, § 3.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 103. Residential real estate loans

§ 103. Residential real estate loans
(a) For any fixed-rate loan, secured by a lien against real estate, used or to be used by the borrower as a residence, the rate of interest and other terms of the loan shall be for the duration of the loan at no more than the rate and terms established in the commitment letter for the loan by the lender, whether or not conditioned on future actions or events, and not the date of execution or closing of the transaction, unless specifically disclosed to and agreed to by the borrower on the date the commitment letter issues. The provisions of section 50 of this title shall apply to any violation of this section.
(b) For any variable-rate loan, secured by a lien against real estate used or to be used by the borrower as a residence, the lender shall disclose any introductory discount or similar reduction from the index or other measure fixing the rate or other terms of the loan at the time the loan commitment letter issues. Any subsequent adjustment above the initial amount discounted, not disclosed as provided in this subsection, shall have no legal force and effect.
(c) The Commissioner of Financial Regulation may adopt rules specifying the form, content, and timing of commitment letters required by this section. The Commissioner may order any person to make restitution to any person injured as a result of a violation of this subchapter and may impose an administrative penalty of up to $1,000.00 for a violation of this subchapter. The Commissioner may order any person to cease violating this subchapter. (Added 1985, No. 131 (Adj. Sess.); amended 1997, No. 98 (Adj. Sess.), § 6, eff. April 16, 1998; 2015, No. 23, § 88.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 104. High rate loans

§ 104. High rate loans
(a) The Commissioner may adopt disclosure rules for loans secured by a first lien on residential real estate in which the borrower is expected to be charged in excess of four points or interest in excess of three percent over the rate established pursuant to 32 V.S.A. § 3108, or both, on the loan. The rules may provide for restrictions on representations by the lender regarding the disclosures required by the rules.
(b) The Commissioner shall notify all mortgage lenders of the interest rate determined under 32 V.S.A. § 3108 annually.
(c) The Commissioner may impose an administrative penalty of not more than $5,000.00 on any person that fails to comply with the provisions of this section. The Commissioner may order a lender to refund any discount points or other charges paid by a borrower who has not received disclosures required by the rule. (Added 1997, No. 98 (Adj. Sess.), § 7, eff. April 16, 1998; amended 2015, No. 23, § 89.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 201. Definitions

§ 201. Definitions
As used in this subchapter:
(1) “Disbursement of loan funds” means the delivery of the loan funds by the lender to the settlement agent in one or more of the following forms:
(A) cash;
(B) wired funds or electronic transfer;
(C) certified check;
(D) checks issued by a governmental entity or instrumentality;
(E) cashier’s check, teller’s check, or any transfer of funds by check or otherwise that is fully collected and unconditionally available to the settlement agent;
(F) checks or other drafts issued by a state-chartered or federally chartered financial institution; checks or other drafts issued by a state-chartered or federally chartered credit union; and
(G) checks issued by an insurance company licensed in the State of Vermont.
(2) “Disbursement of the settlement proceeds” means the payment of all proceeds of the transaction by the settlement agent to the persons or accounts designated to receive the proceeds.
(3) “Lender” means any person who is in the business of making loans secured by a mortgage on real estate and to whom the debt is initially payable on the face of the loan documents.
(4) “Loan closing” means the time a borrower executes any loan document or becomes contractually obligated on a credit transaction, whichever occurs sooner.
(5) “Loan documents” means the note evidencing the debt due the lender, the mortgage securing the debt due the lender, and any other documents required by the lender to be executed by the borrower as part of the transaction.
(6) “Loan funds” means the proceeds of the loan to be disbursed by the lender to others at closing.
(7) “Settlement” means the time when the settlement agent has received the loan funds, loan documents, and other documents and funds to carry out the terms of the contract between the parties, and the settlement agent reasonably determines that all conditions of such contracts have been satisfied. “Parties,” as used in this subdivision, means the seller, purchaser, borrower, lender, and settlement agent.
(8) “Settlement agent” means the person responsible for conducting the settlement and disbursement of the settlement proceeds, and includes an individual, corporation, partnership, or other entity conducting the settlement and disbursement of the settlement proceeds. The lender may be the settlement agent. (Added 2001, No. 55, § 2.)
2023 Vermont Statutes › Title 9 - Commerce and Trade › Chapter 4 - Interest › § 202. Applicability

§ 202. Applicability
This subchapter applies only to transactions involving loans made by lenders, which loans are secured by a first lien on owner-occupied one-to-four-unit residential real estate, including first and second homes. (Added 2001, No. 55, § 2.)