reglab/statecodes huggingface dataset:
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 205 - Branches › § 15101. Establishment of Vermont branches

§ 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 under this section if the Commissioner finds that, based on an application filed under subsection 11701(b) of this title, the application meets the general good of the State as determined under section 11703 of this title. A Vermont financial institution may establish and maintain offices or facilities that do not constitute a branch, without the approval of the Commissioner; provided, however, that establishment of a remote service unit by a Vermont financial institution shall be subject to payment of the fee provided in subdivision 19(a)(6) of this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 205 - Branches › § 15201. Establishment of branches outside Vermont

§ 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 federal financial institution laws.
(b) A merger or consolidation pursuant to this section shall be in accordance with and subject to the provisions of chapter 207 of this title.
(c) Not later than the date on which the required application is filed with the responsible federal supervisory agency, the applicant in the establishment of a branch under this section shall file an application on a form prescribed by the Commissioner. If the Commissioner finds that the proposed transaction will not be detrimental to the safety or soundness of the applicant and the applicant has obtained and provided the Commissioner with copies of all other required approvals, the Commissioner shall approve the application and the operation of the branch outside this State.
(d) A branch of a Vermont financial institution that is located in another state may conduct any activity that is permissible for a branch in that state of a financial institution incorporated under the laws of such state. In order to engage in trust activities in an out-of-state branch, a Vermont financial institution shall have previously obtained the Commissioner’s approval to engage in trust activities under section 14403 of this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 205 - Branches › § 15203. Foreign branches

§ 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 foreign bank to establish a branch, issue a license to a foreign bank to conduct such business in compliance with the laws of this State if the Commissioner finds that:
(1) the foreign bank and its management are of good character and sound financial standing;
(2) the management of the foreign bank and proposed management of the branch are adequate;
(3) the convenience and needs of the persons to be served by the proposed branch will be promoted; and
(4) the foreign bank satisfies such other standards as the Commissioner may establish.
(b) The application required under this section shall be on a form approved by the Commissioner and shall contain a copy of all applicable federal approvals. Except as otherwise provided in this section, subsections 15202(b) and (d) of this title, the license, application, and operations of a branch licensed under this section shall be subject to the requirements imposed on the establishment and operation of branches of financial institutions organized under the laws of this State. Except as otherwise provided in federal law, this title or by rule or order of the Commissioner, the operations of a foreign bank at a branch in this State shall be conducted with the same rights, privileges, and powers as a financial institution incorporated under the laws of this State at the same location and shall be subject to all the same duties, restrictions, penalties, liabilities, conditions, and limitations that would apply under the laws of the state to a financial institution incorporated under the laws of this State. The Commissioner may impose conditions or restrictions on the operations of a branch of a foreign bank in this State. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 205 - Branches › § 15204. Other activities

§ 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 solely for internal operations of the institution to which the public is not admitted for the conduct of financial institution business;
(3) an automated teller machine owned by other than a Vermont financial institution; provided, however, that it does not accept deposits or transfer funds between accounts;
(4) loan production;
(5) foreign exchange services; or
(6) any other financial institution related office or activity that the Commissioner determines may be maintained or conducted in this State.
(b) A financial institution shall obtain the Commissioner’s written approval prior to maintaining any office or conducting any activity described in subsection (a) of this section. The Commissioner may condition approval on the existing availability of the activity in the State.
(c) Nothing in this section shall be deemed to permit a financial institution to solicit or accept deposits, pay checks, or loan money within this State, unless it is otherwise authorized to engage in such activity in this State.
(d) Notwithstanding section 14103 of this title, a financial institution authorized to engage in the activities permitted under this section may use the words “bank,” “banking association,” “national association,” “financial institution,” or “trust company” when engaged in the activities permitted under this section. A financial institution that is authorized to engage in loan production in this State, but not authorized to approve loans in this State, shall disclose in any printed material and advertising that it is engaged in loan production. The organizational name of such financial institution shall not be deceptively similar to any name in use by an authorized financial institution doing business in this State. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2001, No. 73 (Adj. Sess.), § 5, eff. Feb. 2, 2002.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 205 - Branches › § 15205. Out-of-state activities by Vermont financial institutions

§ 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 internal operations of the institution to which the public is not admitted for the conduct of financial institution business;
(3) an automated teller machine owned by a Vermont financial institution; provided, however, that it does not accept deposits or transfer funds between accounts;
(4) loan production;
(5) foreign exchange services;
(6) trust activities; or
(7) any other financial institution-related activity that the host state determines may be maintained or conducted in such state.
(b) The Vermont financial institution shall provide the Commissioner with written evidence that the host state approved, did not object to, or otherwise allows the Vermont financial institution to maintain the office or conduct in the host state the activity described in subsection (a) of this section. In order to engage in trust activities in the host state, a Vermont financial institution shall have previously obtained the Commissioner’s approval to engage in trust activities under section 14403 of this title.
(c) Nothing in this section shall be deemed to permit a Vermont financial institution to solicit or accept deposits, pay checks, or lend money within the host state, unless it is otherwise authorized to engage in such activity in the host state. (Added 2005, No. 36, § 6, eff. June 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 205 - Branches › § 15301. Branch sales, closings, and change of control

§ 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) and section 11703 of this title, the Commissioner shall approve the application upon finding that the proposed sale will not be detrimental to the safety and soundness of the applicant.
(b) Closings. Any state financial institution that intends to close a branch located in this State shall provide the Commissioner with the same notice required to be provided to the appropriate federal financial institution supervisory agency pursuant to 12 U.S.C. § 1831r-1.
(c) Notice of subsequent change of control. Each state financial institution that has established and maintains a branch in this State pursuant to this chapter shall give at least 30 days’ prior written notice or, in the case of an emergency transaction, such shorter notice as is consistent with applicable state or federal law, to the Commissioner of any merger, consolidation or other transaction that would cause a change of control with respect to such state financial institution or any bank holding company that controls such financial institution, with the result that an application would be required to be filed pursuant to the federal Change in Financial Institution Control Act of 1978, as amended, 12 U.S.C. § 1817(j), or the federal Bank Holding Company Act of 1956, as amended, 12 U.S.C. § 1841 et seq., or the Home Owners Loan Act, 12 U.S.C. § 1467a, or any successor statutes. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 301, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 207 - Merger, Share Exchange, Consolidations, and Acquisitions › § 17202. Merger of investor-owned institution with national financial institution

§ 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 institution. The corporate action to be taken by the investor-owned institution and its rights and liabilities and those of its investors are the same as those prescribed in section 17201 of this title, except that approval of the Commissioner is not required.
(b) Upon the effective date of the merger or consolidation, the authority of the participating investor-owned Vermont financial institution shall terminate automatically. The resulting national financial institution shall notify the Secretary of State of the termination. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 207 - Merger, Share Exchange, Consolidations, and Acquisitions › § 17301. Mergers and consolidations; mutual or cooperative financial institutions

§ 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 procedures and subject to the conditions and limitations set forth in this subchapter.
(b) Adoption of plan. The governing body of each participating institution shall adopt, by a majority vote or higher if required by its organizational documents, a plan of merger or consolidation on such terms as are mutually agreed upon. The plan shall include:
(1) the names of the participating institutions and their locations;
(2) with respect to the resulting institution: the name and location of its principal office, branch offices, and facilities; the name, address, and occupation of each director who is to serve until the next annual meeting of the mutual voters; the name and address of each officer;
(3) the amount of capital and the manner of converting deposits, accounts, or shares of such institution into deposits, accounts, or shares of the resulting institution;
(4) the amendments required to be made to the resulting institution’s organizational documents;
(5) a statement that the agreement is subject to approval of the Commissioner and of the eligible account holders of each participating institution;
(6) the mode for carrying the plan into effect;
(7) the anticipated effective date of such merger or consolidation; and
(8) such other provisions and details as may be necessary to perfect the merger or consolidation or as may be required by the Commissioner.
(c) Commissioner’s approval. The Commissioner shall approve the plan of merger or consolidation in accordance with subsection 17101(b) of this title.
(d) Vote of mutual voters. The plan of merger or consolidation, as approved by the Commissioner, shall be submitted to the mutual voters of the participating institutions for their approval at an annual meeting, or at a special meeting called for that purpose, in accordance with the organizational documents of the institution and applicable law.
(e) Executed plan; certificate; effective date. The executed plan, certificate, and effective date shall be in accordance with subsection 17101(d) of this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 207 - Merger, Share Exchange, Consolidations, and Acquisitions › § 17401. Mergers and consolidations; investor-owned and mutual or cooperative financial institutions

§ 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 institution organized under the laws of this State in accordance with the procedures and subject to the conditions and limitations set forth in this subchapter and provided:
(1) The resulting mutual or cooperative financial institution shall comply with the requirements of subsections 17301(a), (b), (c), and (d) of this title except that the plan of merger or consolidation shall state the amount the institution will pay for the equity interests in the investor-owned institution to be acquired and additional information the Commissioner considers appropriate.
(2) The investor-owned institution to be merged or consolidated shall comply with subsections 17201(b) through (f) of this title.
(b) Resulting investor-owned institution. Except as the Commissioner may authorize pursuant to subsection 17101(f) of this title, a mutual or cooperative financial institution may not merge into an investor-owned institution organized under the laws of this State without first converting into an investor-owned institution under section 16101 of this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 208 - Effect of Merger, Share Exchange, Consolidation, Conversion, or Acquisition; Nonconforming Activities › § 18201. Nonconforming activities; cessation

§ 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 participating or converting institutions, such resulting institution shall be subject to the conditions and limitations as set forth in this subchapter.
(b) Plan for termination. The plan of merger, consolidation, conversion, or acquisition shall set forth the method and schedule for terminating those activities not permitted by the laws of this State for the resulting institution, but that were authorized for any of the participating or converting institutions.
(c) Effective date. The plan of merger, consolidation, conversion, or acquisition shall state that from the effective date of such action, the resulting institution shall not engage in any nonconforming activities, except to the extent necessary to fulfill obligations existing prior to merger, consolidation, conversion, or acquisition, pursuant to subsection (d) of this section.
(d) Compliance with limitations. If, as a result of such merger, consolidation, conversion, or acquisition, the resulting institution 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, consolidation, conversion, or acquisition, require a nonconforming activity to be divested in accordance with such additional requirements as he or she may deem appropriate under the circumstances. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19101. Applicability to Vermont financial institutions; independent trust companies; state financial institutions

§ 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 shall also apply to independent trust companies organized and regulated under chapter 77 of this title as if they were financial institutions.
(b) The provisions of subchapter 5 of this chapter shall apply to state financial institutions doing business in this State. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19102. Governor’s proclamation

§ 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 necessary. Those holidays, except as otherwise provided in the proclamation, shall not be considered as business days for the transaction of all banking business, including the demand or payment of deposits, and shall have the incidents of a legal holiday for the purposes specified in 9A V.S.A. Article 3. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19103. Business restricted

§ 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 for any length of time the payment of any amount or proportion of the deposits in savings, commercial, or any other department of the institution, separate and distinct from the other, as the Commissioner may deem necessary or expedient and may regulate further payments as to time and amount, as the interest of the public or the financial institution or the depositors thereof may require. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 305, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19104. Restrictions continued after holidays

§ 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. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19105. Orders as to deposits and debts due financial institution

§ 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 or from a Vermont financial institution under the Commissioner’s supervision as the Commissioner may deem necessary for the protection and preservation of the public safety and convenience or the equal protection of those Vermont financial institution’s depositors in view of then existing banking, business, or other pertinent conditions. Those orders may apply to any Vermont financial institution as may be necessary for those purposes, and the orders may restrict or regulate all business or any part of the business of a financial institution affected thereby, including the time or manner or medium of payment, or limitations on the amount or percentages of payment of deposits or of debts or obligations, or the investment or the loaning of money, or the approval and acceptance of security for new loans. The orders may classify financial institutions or departments thereof or deposits or assets and liabilities and may vary with the different classes as may be required for fulfilling the purposes of this section and sections 19102 through 19104 of this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19106. Withdrawals; rateable share of depositor’s interest

§ 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 governance documents, withdrawals shall be counted as a part of the rateable share of the withdrawing depositor’s interest in the assets of a mutual or cooperative financial institution to which he or she was entitled at the time the restrictions were imposed if final liquidation of the financial institution takes place before all those restrictions are removed. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19107. Publication of orders

§ 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 judgment circumstances warrant or require. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 306, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19108. Appeal; receiver

§ 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 County. No injunction may be issued without prior notice to the Commissioner, and the court, on motion of the Commissioner, may appoint a temporary receiver of a financial institution involved in those proceedings. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2017, No. 11, § 7.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19109. New commercial or savings deposits authorized; withdrawals

§ 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 commercial deposits or new savings deposits, as the case may be, and shall be segregated from all other deposits. New commercial deposits shall also be segregated from new savings deposits. They may be invested only in assets approved by the Commissioner as being sufficiently liquid to be available when needed to meet any demands on account of those new deposits, which assets shall not be merged with other assets of the institution, but shall be held in trust for the security and payment of those new deposits, except that income from those assets, to the extent authorized by the Commissioner, may be used by the financial institution for other proper purposes of the institution. The withdrawal of those new deposits shall not be subject in any respect to restriction or limitation under this section and sections 19102 through 19108 of this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19110. Costs and expenses

§ 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 paid by those financial institutions. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19201. Appointment and bonding of conservators

§ 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 financial institution and require of the conservator such bond and security as the Commissioner deems proper. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19202. Conservation of assets

§ 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 pending further disposition of its business as provided by law. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19203. Powers of conservator

§ 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, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19204. Rights of interested parties

§ 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 therefor. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 307, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19205. Fiduciary powers; appointment of new trustee for trust accounts

§ 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 financial institution for which the conservator is appointed was trustee, desire another trustee appointed to administer and manage the trust, the Probate Division may appoint a new trustee for the trust. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19206. Expenses; salary

§ 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 Governor. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19207. Withdrawals

§ 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, such amounts as in the opinion of the Commissioner may safely be used for this purpose. The conservator may borrow money on the assets of the financial institution to provide funds for the purposes specified in this section. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 308, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19208. Deposits

§ 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, and those deposits shall be segregated and shall not be used to liquidate any indebtedness of the financial institution existing at the time that a conservator was appointed to it, or any subsequent indebtedness incurred for the purpose of liquidating any indebtedness of the financial institution existing at the time the conservator was appointed.
(b) Deposits so received while the financial institution is in the hands of the conservator shall be kept on hand in cash, invested in the direct obligations of the United States, or deposited in financial institutions approved by the Commissioner. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19209. Termination of conservatorship

§ 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 resume the transaction of its business subject to such terms, conditions, restrictions, and limitations as the Commissioner may prescribe. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19210. Notice to depositors of termination of conservatorship

§ 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 conservator shall turn back the affairs of the Vermont financial institution to its governing body, the Commissioner shall cause to be published in a newspaper in the city, town, or county in which the financial institution is located, a notice in form approved by the Commissioner stating the date on which the affairs of the financial institution will be returned to its governing body. On the date of the publication of that notice, the conservator shall immediately send to every person who is a depositor in the financial institution a copy of that notice by mail, addressed to the last known address of that person as shown by the records of the financial institution, and the conservator shall send similar notice in like manner to every person making a deposit in that financial institution under section 19208 of this title after the date of that newspaper publication and before the time when the affairs of the financial institution are returned to its governing body. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19301. Application for receiver; petition to divide losses

§ 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 the appointment of a receiver unless, in case of a mutual or cooperative financial institution, the Commissioner deems it advisable to join with the governing body in a petition to divide the losses among the depositors as provided in this subchapter. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 309, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19302. Appointment of receiver; notice and hearing

§ 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 cause is not shown, the court shall appoint a receiver to take charge of the property and effects of the financial institution, who shall be subject to the Superior Court. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 310, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19303. Bonding of receiver

§ 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, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19304. Commissioner as receiver

§ 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 without compensation other than his or her stated compensation as Commissioner, but the Commissioner shall be allowed clerical and other expense necessary in the conduct of the receivership. The court may appoint the Commissioner’s successor in office as receiver. However, if a change in the receivership, in the judgment of the Superior judge, would be against the financial interest of those concerned, the court may continue the receiver in office at such reasonable compensation as the court may determine. If the deposits of the insolvent financial institution are insured by the Federal Deposit Insurance Corporation, the Superior judge, in his or her discretion, may appoint as receiver of the financial institution the Federal Deposit Insurance Corporation to serve without bonds and without compensation. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19305. Duties and rights of receiver

§ 19305. Duties and rights of receiver
The receiver shall collect, sue, and receive the debts and demands due and the property that belong to the Vermont financial institution and shall convert into cash its real and personal estate and, upon the approval of the Superior judge, may borrow money and pledge any part or all of the assets of such financial institution as security for such loan and shall make report to the court of the condition of the trust at such times as the Superior judge orders. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19306. Federal deposit insurance corporation

§ 19306. Federal deposit insurance corporation
If the Federal Deposit Insurance Corporation shall have been appointed receiver of a closed Vermont financial institution, it may advance, with the consent and approval of the Superior judge, monies to pay insured deposits or for other proper purposes and shall have a lien upon all or any part of the assets of such financial institution as the court may direct for the repayment of such advances, which shall be deemed to be in the nature of a loan, but provision shall be made in such order to secure ultimately as large a percentage payment on account of uninsured deposits as would be finally available for such deposits if such assets were not so pledged. The Federal Deposit Insurance Corporation, whether or not acting as receiver, may become the purchaser of any assets of such Vermont financial institution that have been offered for public bids, under such terms and conditions as the Superior judge may direct, provided that the purchase be approved by the Superior judge after hearing held on such reasonable notice by publication or otherwise as the Superior judge may direct. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19307. Subrogation

§ 19307. Subrogation
Whenever any Vermont financial institution shall have been closed, and the Federal Deposit Insurance Corporation shall pay the insured deposit liabilities of such closed institution, such corporation, whether or not it shall have become a receiver of such closed financial institution, shall be subrogated to the extent of such payment to all rights of the owners of such deposits against such closed financial institution. The Superior judge shall by order define the manner and extent of such subrogation. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19308. Order

§ 19308. Order
When on hearing and after such reasonable notice as the Superior judge may direct, any order as to a lien upon assets of a closed Vermont financial institution or of subrogation to the rights of depositors in the institution made by the judge under the authority of sections 19304 through 19307 of this title, and provided no objections have been filed within 10 days after the making of the order, the order shall be binding and effective to the extent necessary to secure the repayment of monies advanced. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 311, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19309. Limitation on time for proving claims

§ 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 notice thereof to be given by publication for three weeks successively in a newspaper printed and circulated in the county where such Vermont financial institution is located. The time allowed for creditors to present and prove their claims shall not be less than six months and may be extended as circumstances require. Claims not presented within the time limit shall not share in the assets of the Vermont financial institution. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19310. Submission of disallowed claims to Superior judge

§ 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 in whole or in part, shall be submitted to the Superior judge for the purpose of proving the same at such time and in such manner as the Superior judge orders. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19311. Order to discontinue unauthorized practices

§ 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 its business and affairs in an unsafe or unauthorized manner, or that it or any of its officers have failed to comply with all the rules, restrictions, and conditions provided by law, including the rules and requirements of the Commissioner made in conformity to law, the Commissioner shall, by a written order delivered to the treasurer of such organization and the offending officer or officers, direct such organization and such officer or officers to discontinue such illegal, unsafe, or unauthorized practices or conduct, and to proceed in strict conformity with the requirements of law. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19312. Failure to comply with Commissioner’s order

§ 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 institution and its officers as the circumstances require. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19313. Authority of court to enforce Commissioner’s order

§ 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 appear at a time and place named in the notice and show cause why an injunction or proper remedial order should not be issued. If sufficient cause is not shown, the court shall have power:
(1) to allow such financial institution to continue to transact business in conformity with the requirements of law subject to such orders, conditions or restrictions as the evidence in the case and the interests involved shall require; or
(2) if it appears that it is unsafe or inexpedient for such financial institution to continue to transact business, to appoint a receiver or receivers to take charge of the property and effects of the financial institution and such receivership shall be subject to the provisions of this subchapter applicable in case of a receiver appointed on petition of the Commissioner on ascertainment of a financial institution’s insolvency. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 312, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19314. Accounting and report of receiver

§ 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 statement of the affairs of such institution showing the nature and amount of the assets and liabilities, also a true account of the expenses incurred and not previously reported, giving the items thereof. Such report shall be printed with and as a part of the annual report of the Commissioner. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19315. Appeal

§ 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, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 209 - Conservation, Liquidation, and Insolvency › § 19401. Plan for reopening or establishment of new financial institution

§ 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, representing not less than 75 percent of the deposit liability, and with the approval and consent of the Commissioner, may join in a plan for the reopening or reorganization of the financial institution or the establishing of a new financial institution, and may select a committee of not more than 12 depositors to represent them for the purpose of carrying the plan into effect. However, a depositor who has been notified and does not refuse to give his or her consent within 15 days of that notification shall be included in reckoning that 75 percent. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)