reglab/statecodes huggingface dataset:
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 203 - Organization and Management of Mutual and Cooperative Financial Institutions › § 13601. Voluntary dissolution; procedure; criteria

§ 13601. Voluntary dissolution; procedure; criteria
(a) A mutual or cooperative financial institution shall submit to the Commissioner for approval a plan of dissolution prior to filing its articles of dissolution under Title 11A. The plan shall contain the following items:
(1) pro forma financial statements that demonstrate that the financial institution will, upon dissolution, discharge, or make provision for discharging, its liabilities;
(2) a method to distribute all remaining assets among its depositors or members according to their interests;
(3) the process of and resources dedicated to the oversight of the dissolution of the financial institution;
(4) the plan to transfer to any other financial institution its deposit, loan, and trust accounts, including escheat of all remaining deposit accounts to the State of Vermont;
(5) the procurement or continuation of insurance or the provision of other security as the Commissioner deems necessary;
(6) an acknowledgment that, before the articles of dissolution are filed, there will be no distributions to depositors or members, without first providing for the obligations of the dissolving entity; and
(7) such other information or assurances as the Commissioner may require.
(b) Upon approval of the plan, the financial institution may file its articles of dissolution with the Secretary of State under Title 11A and proceed with the dissolution as provided by law.
(c) During its wind-up, a dissolved entity shall not transact any further banking business after its deposit insurance has terminated. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14101. Applicability of chapter

§ 14101. Applicability of chapter
The provisions of this chapter set forth the powers granted to all financial institutions organized pursuant to chapters 202 and 203 of this title and branches of any state or foreign financial institution authorized under section 15202 or 15203 of this title. The powers, privileges, duties, and restrictions conferred and imposed in the organizational documents or act of incorporation of any commercial bank, savings bank, savings and loan association, bank and trust company, or trust subsidiaries organized under the prior laws of this State are abridged, enlarged, or modified so that each such charter or act of incorporation conforms to this title. Notwithstanding anything in a charter or act of incorporation of such an institution, every such institution possesses the powers, rights, and privileges and is subject to the duties, restrictions, and liabilities conferred and imposed by this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14103. Advertising; doing business or using name unlawfully

§ 14103. Advertising; doing business or using name unlawfully
No person shall advertise or put forth any sign as a bank, banking association, or trust company, or in any way solicit or receive deposits or transact business as a bank, banking association, financial institution, or trust company, or use the word “bank,” “banking association,” or “trust company” or other similar sounding word or name unless it is a financial institution reporting to and under the supervision of the Commissioner or is authorized to conduct such business in this State under federal law, or unless the Commissioner approves the activity or word or name used in writing after giving due consideration for whether the activity, word, or name will confuse or mislead the public as to the nature of the business of the entity. However, this section shall not prevent an individual, as such, from acting in a trust capacity. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14104. Capital or surplus requirements

§ 14104. Capital or surplus requirements
(a) Every Vermont financial institution shall establish and maintain adequate levels of capital or surplus pursuant to standards established by the Commissioner.
(b) Any issuance considered as capital under subsection (a) of this section shall be submitted to the Commissioner for review and approval at least 10 days prior to issuance and include such documentation as the Commissioner deems necessary.
(c) Notwithstanding the provisions of subsections (a) and (b) of this section, the Commissioner may permit the formation of a Vermont financial institution without capital or surplus to be merged with or into or consolidated with an existing financial institution for the purpose of facilitating a reorganization or acquisition transaction, including a triangular merger transaction, involving such existing financial institution. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14105. Participation in public agencies

§ 14105. Participation in public agencies
A financial institution has the power to participate in a public agency created under the laws of this State or of the United States, the purpose of which is to afford advantages or safeguards to financial institutions, depositors, or investors and to comply with all requirements and conditions imposed upon such participants except to the extent limited by rule or order of the Commissioner. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14106. Expanded powers of Vermont financial institutions

§ 14106. Expanded powers of Vermont financial institutions
In addition to all other powers permitted under these statutes, any Vermont financial institution shall have the powers conferred under federal law administered by the Federal Reserve Board, the Office of the Comptroller of the Currency, the FDIC, the Consumer Financial Protection Bureau, or other federal banking regulator upon national financial institutions or their subsidiaries. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 139 (Adj. Sess.), § 5, eff. May 27, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14107. Investments

§ 14107. Investments
(a) A Vermont financial institution may invest its assets prudently in accordance with the best judgment of its governing body in a manner consistent with this section.
(b) A Vermont financial institution may not acquire more than five percent of the equity interest of any Vermont financial institution or of a Vermont bank holding company without the prior approval of the Commissioner.
(c) Notwithstanding any other provision of law to the contrary, a financial institution may invest its funds, operate a business, manage or deal in property, or take any other action over whatever period of time may reasonably be necessary to avoid loss on an investment or loan previously made or an obligation created in good faith.
(d) A Vermont financial institution’s governing body shall establish a written investment policy, which it shall review and ratify at least annually, that addresses, at a minimum, the following:
(1) investment quality parameters;
(2) investment mix and diversification;
(3) investment maturities; and
(4) delegation of authority to officers and committees responsible for administering the portfolio.
(e) A Vermont financial institution shall not acquire a lien on its equity interests as collateral for any extension of credit or other obligation nor acquire title to such collateral except to prevent loss upon a loan or investment previously made or an obligation created in good faith. If a Vermont financial institution acquires such a lien upon its equity interest or acquires title to such equity interest under the exception in this subsection, it shall not permit the lien to continue for more than two years, nor shall it hold title to the equity interest for more than one year, without the consent of the Commissioner.
(f) Except as otherwise provided in subsection (e) of this section, and subject to chapter 202, subchapter 4 and chapter 203, subchapter 2 of this title, a Vermont financial institution may repurchase or redeem its own equity interests. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14108. Prohibited mergers and acquisitions

§ 14108. Prohibited mergers and acquisitions
(a) No depository institution may by merger, consolidation, or other form of acquisition come to hold in excess of 30 percent of the total time and demand deposits held in Vermont by depository institutions. For the purposes of this section, the total deposits of a depository institution shall consist of all time and demand deposits held in Vermont by such depository institution and all of its affiliates.
(b) Notwithstanding subsection (a) of this section, the Commissioner may waive the deposit concentration limit set forth in subsection (a) of this section if the Commissioner determines that any financial institution to be merged, consolidated, or acquired is not adequately capitalized, or is subject to a conservation, receivership, or dissolution order under this title or applicable federal law, and the waiver is otherwise in the best interests of depositors. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 293, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14109. Prohibited management interlocks

§ 14109. Prohibited management interlocks
A director or officer of a Vermont financial institution shall not at the same time be a director or officer of another financial institution engaged in the business of banking in the State of Vermont or a state contiguous to Vermont. The terms of this section shall not apply to:
(1) a financial institution that is in liquidation, receivership, conservatorship or similar proceedings;
(2) the Federal Reserve Bank of Boston;
(3) a financial institution affiliated by reason of common ownership or control of at least 25 percent of the voting interests of such affiliated financial institutions; or
(4) any other relationship otherwise permitted under interagency guidelines or regulations of federal supervisory authorities adopted from time to time, relating to management interlocks. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14110. Duties of executive officers, directors, and persons who control principal equity interests in financial institutions; officers may not receive fees

§ 14110. Duties of executive officers, directors, and persons who control principal equity interests in financial institutions; officers may not receive fees
(a) All executive officers, directors, and holders of principal equity interest of a Vermont or state financial institution subject to the laws of this State under this title shall comply with the standards for member banks established by Regulation O of the Federal Reserve Board, 12 C.F.R., Part 215, as amended.
(b) An officer, director, or employee of a Vermont or state financial institution shall not corruptly solicit or demand for the benefit of any person, or corruptly accept or agree to accept (i) any fee, present, benefit, or commission, directly or indirectly, from a borrower or applicant for a loan or from anyone negotiating securities at the financial institution of which he or she is an officer, director, or employee; (ii) any fee, present, benefit, or commission, directly or indirectly, for signing with another as accommodation maker, surety or endorser, or for a loan made or securities bought or sold by the financial institution, except for the benefit or profit he or she may derive in common with other depositors or stockbrokers, and the compensation allowed by the financial institution, for services and expenses. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14201. Deposit powers

§ 14201. Deposit powers
(a) Applicability. This subchapter governs deposits or accounts in financial institutions.
(b) General deposit powers.
(1) A financial institution may receive money on deposit and may establish the terms and conditions of each deposit contract. A financial institution may receive demand deposits subject to withdrawal or to payment upon the depositor’s check, order, or other authorization.
(2) At the time of opening a deposit account, a financial institution shall provide the depositor a statement containing the existing terms and conditions of the deposit contract. The statement may be set forth on the depositor’s signature card. Depositors and any other owners of interests in a deposit account shall be bound by changes made by the financial institution in their deposit contracts. Financial institutions shall provide advance notice of changes in accordance with 12 U.S.C. § 4301 et seq.
(3) A financial institution, in its sole discretion, may refuse deposits and at any time may return all or part of a deposit.
(4) For any period during which funds are on deposit, a financial institution may pay interest.
(c) Insurance of deposits or accounts. Except as permitted by chapter 202, subchapter 6 of this title, a Vermont financial institution that accepts deposits or a branch of a state financial institution authorized to do business in this State shall not accept deposits in this State unless the financial institution is insured by the Federal Deposit Insurance Corporation.
(d) Cash reserve on deposits and accounts. A financial institution shall maintain reserves on deposits or accounts as required from time to time by the Federal Reserve Act, as amended, and any regulations promulgated under it. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14202. Payment of deposits to administrators from another state or country

§ 14202. Payment of deposits to administrators from another state or country
(a) When a deposit is made in a financial institution by a person residing in another state or country, the deposit, or any part thereof, with the interest thereon, may be paid to the administrator or executor appointed in the state or country where the depositor resided at the time of death, provided an administrator or executor has not been appointed in this State at the time of such payment.
(b) An action shall not be maintained against a financial institution for the recovery of a deposit or any part thereof, with the dividend or interest thereon, made by a person residing in another state or country who has died, payment of which has been made to the executor or administrator appointed in the state or country where the depositor resided at the time of death, before the appointment of an executor or administrator in this State. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14203. Trust deposits; payment on death of trustee

§ 14203. Trust deposits; payment on death of trustee
When a deposit is made in a financial institution 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. When other notice of the existence and terms of a legal trust is not given in writing to the financial institution, 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 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14204. Joint deposits

§ 14204. Joint deposits
(a) Payment. When a deposit has been made in a financial institution in the names of two or more persons, payable to any one of them, or payable to the survivors or any one of the survivors, such deposit or any part thereof, or any interest or dividend thereon may be paid to any one of such persons, whether the others are living or not, and the receipt or acquittance of the person so paid shall be a valid and sufficient release and discharge of the financial institution for any payment so made.
(b) Evidence of joint deposit. The recital of the words “payable to either or to the survivor” or words of like effect in the order creating such account and signed by the person or persons who furnish the funds for such deposit shall be conclusive evidence, as between the payees and their legal representatives, of the creation of an absolute joint account. However, nothing in this section shall prevent the proof of fraud, undue influence, or incapacity to defeat such joint interests. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 294, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14205. Payable on death accounts

§ 14205. Payable on death accounts
(a) A “payable-on-death account” is created by a deposit in a financial institution in the name of an account holder or several joint account holders with a designation that the account is payable on death to one or more payees, known as “P.O.D. payees”. On the death of the sole account holder or the last surviving joint account holder, any remaining balance in a payable-on-death account, including interests or dividends, shall vest solely in the surviving P.O.D. payee or equally and severally in the then surviving P.O.D. payees. 90 days later, unless prevented as provided in subsection (c) of this section, the financial institution may pay the remaining balance to the new owner or owners or their legal representatives without further liability for the amount or amounts paid. If no P.O.D. payee is surviving 90 days after the last surviving account holder dies, the balance of the account shall be payable to the personal representative of that account holder.
(b) Recital of the words “payable-on-death,” the abbreviation “P.O.D.,” or words of like effect in the order creating the account, signed by the person or persons furnishing the funds for the deposit, shall be conclusive evidence, as between the legal representatives of account holders and the payable-on-death payees or their legal representatives, of the creation of an absolute payable-on-death account, except as provided in subsection (c) of this section. However, nothing in this section shall prevent proof of fraud, undue influence, or incapacity to defeat a payable-on-death interest.
(c) If other assets of the probate estate of the last surviving account holder are insufficient to pay debts and expenses, including statutory allowances and assignments to the surviving spouse, a payable-on-death account shall not transfer to P.O.D. payees sums needed for that purpose. A P.O.D. payee who receives payment from a payable-on-death account after the death of the last surviving account holder shall be liable to the account holder’s personal representative for the amount of payment to the extent necessary to discharge debts and expenses remaining unpaid after application of the decedent’s estate. No proceeding shall be commenced later than two years after the death of the decedent. Sums recovered by the personal representative shall be administered as part of the decedent’s estate. This section shall not affect the right of a financial institution to make payment from a payable-on-death account to a P.O.D. payee 90 days after the death of the last surviving account holder or make a financial institution liable to the personal representative of the estate of a deceased account holder unless before making payment the financial institution is served with process in a proceeding brought by the personal representative or with an order from the Probate Division of the Superior Court prohibiting payment. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14206. Deposits of minors; exemption from trustee process

§ 14206. Deposits of minors; exemption from trustee process
(a) Payment. The governing body of a financial institution, in its discretion, may accept deposits from a minor and may pay to a minor such sum as is deposited to the credit of such person, and is due, as if such minor were of age. The check and receipt or acquittance of such minor shall be a full discharge for the amount for which it is given.
(b) Minor’s deposits exempt from trustee process. A financial institution shall not be chargeable as trustee on account of funds deposited to the credit of a minor, provided such funds are earned by or belong to such minor. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14207. Provisions when title to deposit is litigated

§ 14207. Provisions when title to deposit is litigated
(a) Multiple claims. In actions against a financial institution by one spouse to recover for monies deposited by the other spouse in the latter’s own name, the depositing spouse may be a witness. In actions against such financial institution to recover for money on deposit, if there is a person, whether married or not, claiming the same fund, who is not a party to the action, the court, on the petition of such financial institution and on such notice as it considers proper to the plaintiff and such claimant, may order the proceedings to be amended by making such claimant a party defendant. The court shall thereupon hear and determine the rights and interests of the parties to such action in and to such fund.
(b) Litigated deposits; payment into court; costs. The deposits that are the subject of such action may remain with such financial institution upon the same interest as other deposits of like amount, until final judgment in the action, and the same shall be paid by such financial institution in accordance with the order of the court, or the deposits may be paid into court to await the final determination of the action. When so paid into court, the financial institution shall no longer be a party to such action, and its liability for such deposit shall cease. The costs in such action shall be in the discretion of the court and may be charged upon the fund affected by the action. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 295, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14208. Security for deposits

§ 14208. Security for deposits
No Vermont or state financial institution may pledge, hypothecate, or deliver any of its assets of any description whatsoever as security for a deposit of private funds, or for the purpose of indemnifying any person, as surety for the financial institution, or as surety for any other person. However, a Vermont financial institution or state financial institution may so secure a deposit to the credit of the United States, of the State of Vermont, or of any political subdivisions of the State, either directly or indirectly. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14209. Examination of accounts

§ 14209. Examination of accounts
Each Vermont financial institution shall annually cause a sampling of its loans and deposit accounts to be verified by the account holder. The verification shall be under the direction of an outside auditor or the internal auditor of the Vermont financial institution. The auditor shall report the results directly to the governing body. The verification methodology and results shall be available to the Commissioner upon request. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14210. Real estate trust and escrow

§ 14210. Real estate trust and escrow
(a) In accordance with its schedule for similar remittances, any financial institution in which a pooled real estate trust or escrow account has been established under 26 V.S.A. § 2214(c) shall remit the interest accumulated on the account to the Vermont Housing Finance Agency established under 10 V.S.A. chapter 25 to be used in the Agency’s single family home mortgage programs.
(b) A financial institution may deduct a reasonable remittance fee for transferring funds to the Housing Finance Agency under this section. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14211. Claims not clearly consistent

§ 14211. Claims not clearly consistent
If any claim not clearly consistent with the terms of any applicable authority on file with a financial institution is made to any deposit, safe deposit box, property held in safekeeping, security, obligation, or other property in the financial institution’s possession or control, in whole or in part, by any person, including any depositor, individual, or group of individuals, whether or not authorized to draw on or exercise any right or control with respect to the property, the financial institution is not required to recognize the claim without one of the following:
(1) a court order, issued by a court of competent jurisdiction and served on the financial institution, enjoining or restraining the financial institution from taking any action with respect to the property or instructing the financial institution to pay the balance of the account, provide access to the safe deposit box, or deliver the property as provided in the order; or
(2) a bond in the form and amount and with sureties satisfactory to the financial institution, indemnifying the financial institution against any liabilities, loss, and expenses it might incur because of its recognition of the claim or because of its refusal, due to the claim, to honor or recognize any right with respect to the property. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14302. Real estate loans

§ 14302. Real estate loans
(a) Clear title. All loans secured by mortgages on real estate shall be supported by written evidence satisfactory to the financial institution 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 financial institution 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 federally related transaction entered into by a financial institution shall comply with the regulations of the Federal Deposit Insurance Corporation, as amended and codified at 12 C.F.R. Part 323. The appraisal of real estate securing a nonfederally related transaction entered into by a financial institution shall comply with the federal supervisory agencies’ interagency guidelines, as amended.
(c) Servicing of loans. A financial institution may contract with another financial institution, 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 financial institution shall not lose or suffer any impairment of any right of deduction or offset it might have against any one liable for the mortgage debt.
(d) Home loan escrow accounts. Any financial institution 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 Affair’s 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 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14304. Card holder represented by legal counsel

§ 14304. Card holder represented by legal counsel
(a) A credit card company or its creditor or collection agency shall not contact a card holder regarding a debt, late fee, or other charge once informed that the card holder is disputing the debt, late fee, or other charge; is represented by legal counsel in the dispute; and the card holder has provided the credit card company or its creditor or collection agency with the name, address, and telephone number of the legal counsel.
(b) A credit card company or its creditor or collection agency that violates subsection (a) of this section shall be fined not more than $10,000.00.
(c) Each violation of subsection (a) of this section shall be considered a separate offense. (Added 2009, No. 55, § 11.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14401. Types of trust functions

§ 14401. Types of trust functions
(a) With the prior approval of its governing board, a financial institution may act alone or with others as:
(1) fiduciary;
(2) custodian of property;
(3) agent or attorney in fact;
(4) registrar or transfer agent of securities;
(5) trustees under corporate mortgages, trust deeds or similar indentures; or
(6) fiscal agent of the United States, a political subdivision thereof, a body politic, a corporation, or an individual.
(b) With that approval, a financial institution may also be appointed and act as executor or coexecutor of a will, codicil, or writing testamentary, as administrator or co-administrator with the will annexed, as administrator or co-administrator of a person deceased, as receiver, assignee, trustee, alone or with others, or as guardian or co-guardian of a person subject to guardianship, and with that approval may relinquish the fiduciary office, under the same circumstances, in the same manner and subject to the same control by a court having jurisdiction, as a natural person legally qualified. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14402. National financial institutions; state financial institutions

§ 14402. National financial institutions; state financial institutions
(a) To the same extent that the laws of the United States permit, a national financial institution located and doing business in this State may act, alone or with others, as specified in section 14401 this title.
(b) Subject to the provisions of 11A V.S.A. chapter 15 and 11 V.S.A. chapter 21, subchapter 10, except that 11A V.S.A. § 15.06 and 11 V.S.A. § 3136 shall not apply to any financial institution, including a state trust company, a financial institution with trust powers with its principal place of business not in Vermont may act, alone or with others, as specified in section 14401 of this title, and may establish one or more places of business in this State for the conduct of such trust business, provided that:
(1) it is a direct or indirect subsidiary of a bank holding company that has a direct or indirect financial institution subsidiary that has an office in this State at which deposits are accepted; or
(2) the law of the state in which it is located or domiciled would allow either a Vermont financial institution or a national financial institution, with its principal place of business located in Vermont to establish one or more places of business in such state for the conduct of trust activities if authorized by its supervisory agency to exercise trust powers.
(c) As a condition precedent to its right to act in the capacities specified in this section, it shall file a stipulation with the Commissioner of Taxes, in which it shall agree that any funds, securities, or property held by it under any appointment under this subchapter, shall be taxed in the same manner and to the same extent as funds of the same character held by a Vermont financial institution.
(d) A state financial institution with trust powers, including a state trust company, shall obtain the Commissioner’s written approval before establishing a place of business in this State pursuant to subsection 11701(b) of this title. Before issuing such approval, the Commissioner must find that it is adequately staffed, equipped, and able to furnish trust services in this State. The Commissioner may examine its activities in this State at any time deemed necessary to ensure its continued safety and soundness, ability to furnish trust services, and compliance with the laws of this State. It shall make its books and records pertaining to its business in this State available to the Commissioner for such examination. Each state financial institution shall pay fees and assessments as prescribed by sections 18, 19, and 11501 of this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14403. Approval of Commissioner

§ 14403. Approval of Commissioner
No financial institution not otherwise expressly authorized by its respective supervisory agency under state or federal law may exercise the powers provided in this subchapter until it has applied for and obtained approval of the Commissioner to do so under subsection 11701(b) of this title. The Commissioner shall conduct inquiry into the affairs of the financial institution applying for those powers to determine if the financial institution is staffed, equipped, and able to furnish those services. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2005, No. 36, § 5, eff. June 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14404. Security

§ 14404. Security
The capital of a financial institution exercising trust powers shall be held as security for the faithful discharge of the duties undertaken thereby as well as for the claims of other creditors. The financial institution shall furnish to the authority making the appointment a good and sufficient bond for a sum not less than 25 percent of the amount of the trust fund, conditioned for the faithful discharge of the duties undertaken by virtue of section 14401 of this title. However, when the bond would not exceed $2,000.00, a financial institution shall be relieved of furnishing it. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14405. Powers and duties of officers

§ 14405. Powers and duties of officers
In proceedings in the Probate Division of the Superior Court or elsewhere, connected with authority exercised as executor, administrator, receiver, assignee, trustee, or guardian, all accounts, returns, and other papers may be signed and sworn to in behalf of such a financial institution exercising trust powers by any officer thereof duly authorized by it. The answers and examinations of that officer, under oath, shall be received as the answers and examinations of the financial institution. The court may order and compel any and all officers of the financial institution to answer and attend the examinations, in the same manner as if they, personally, were parties to the proceeding or inquiry. Such a financial institution shall not be required to receive or hold any property or money or to execute any trust contrary to its own desire. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14406. Segregation of trust funds; exception

§ 14406. Segregation of trust funds; exception
All monies, property, or securities received or held by a financial institution in the capacity of executor, administrator, receiver, assignee, trustee, or guardian shall be kept separate and distinct from its general business and shall not be mingled with the investments of its assets or be liable for its debts or obligations. However, a financial institution exercising trust powers, in good faith, may deposit temporarily in its commercial or savings departments any money so held in trust awaiting distribution or investment and may also deposit in its savings department as an investment for any one trust an amount insurable and insured by the Federal Deposit Insurance Corporation. All such deposits in either department shall be in the name of the trust or in the name of the financial institution as trustee of the trust. If the security afforded by virtue of this section and section 14404 of this title is insufficient to satisfy in full any claim growing out of the holding or management of monies, property, and securities so received and held, the unsatisfied balance shall then be satisfied as are demands of the general creditors of the financial institution. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14407. Collective investment funds

§ 14407. Collective investment funds
(a) A Vermont financial institution may invest assets that it holds as a fiduciary in the following collective investment funds:
(1) a fund maintained by the financial institution, or by one or more affiliated financial institutions, exclusively for the collective investment and reinvestment of money contributed to the fund by the financial institution, or by one or more affiliated financial institutions, in its capacity as trustee, executor, administrator, guardian, or custodian under the Uniform Transfers to Minors Act;
(2) a fund consisting solely of assets of retirement, pension, profit sharing, stock bonus, or other trusts that are exempt from federal income taxation under the Internal Revenue Code; and
(3) a fund consisting of any other assets held as a fiduciary, to the extent not prohibited by applicable law.
(b) In addition to any other rules that the Commissioner finds necessary or desirable for the administration of this section, the Commissioner may adopt rules on the following:
(1) the requirements for a written plan for the establishment, maintenance, and operation of collective investment funds;
(2) the method and frequency of valuation of such fund’s assets;
(3) the admission and withdrawal of accounts;
(4) standards on self-dealing and conflicts of interest;
(5) permissible management fees;
(6) the requirements for audits and financial reports of collective investment funds; and
(7) the requirements for the establishment, maintenance, and operation of other investments permitted by subdivision (a)(3) of this section, including the treatment of exemptions from the provisions of this section.
(c) A Vermont financial institution administering a collective investment fund shall have exclusive management thereof, except as a prudent person might delegate responsibilities to others.
(d) Each participating account in a collective investment fund shall have a proportionate interest in all the fund’s assets.
(e) A Vermont financial institution administering a collective investment fund may charge reasonable expenses incurred in operating the fund, but not expenses associated with establishing or reorganizing a collective investment fund.
(f) A Vermont financial institution may not advertise any collective investment fund except in connection with the advertisement of the general fiduciary services of the institution.
(g) A Vermont financial institution shall not issue any certificate representing an interest in a collective investment fund, except to provide a withdrawing account with an interest in a segregated investment. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2015, No. 23, § 87.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14408. Registration and sale of securities

§ 14408. Registration and sale of securities
A Vermont or state financial institution owning or holding stocks or other securities in any fiduciary capacity may cause the same to be registered in the name of a nominee. The word “nominee” shall be construed to include one or more natural persons, a partnership, a corporation, or similar entity. Any such securities jointly held in a fiduciary capacity by a financial institution and another, individual or corporate, may be registered in the name of a nominee mutually satisfactory to the co-fiduciaries. Any fiduciary acting jointly with a financial institution may authorize and direct the financial institution in writing to register securities provided in this section. An individual or corporate fiduciary may deliver any such securities to a financial institution as custodian and may authorize and direct the financial institution in writing to register such securities in the name of a nominee. A financial institution having caused securities to be registered in the name of a nominee as provided in this section and wishing or being required by the terms of its fiduciary agreement to deliver them to one legally entitled thereto shall first cause them to be transferred into the name of the one to receive delivery. Sales of any such securities made by a financial institution under its fiduciary authority may be completed by delivery of the security, endorsed by the nominee without the necessity of transfer through a joint fiduciary, the trust-creator, or the beneficiary. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 299, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14409. Disposition of securities upon court order; liability for acts of nominee

§ 14409. Disposition of securities upon court order; liability for acts of nominee
Any fiduciary financial institution may dispose of any security under an order or decree of any court of competent jurisdiction by delivery of the security endorsed by the nominee as provided in section 14408 of this title in the case of sales. Any fiduciary financial institution shall be absolutely liable for any loss occasioned by the acts of the nominee or the financial institution with respect to any securities registered in the nominee’s name. Both legal and equitable ownership of all securities in the financial nominee’s possession or subject to the financial nominee’s control shall be fully revealed by the financial institution’s records. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14410. Fiduciary investments

§ 14410. Fiduciary investments
(a) In the absence of an express prohibition in the instrument, judgment, decree, power, order, or other writing creating a trust or other fiduciary relationship, a financial institution acting as fiduciary may invest and reinvest funds held by it in a fiduciary capacity in the securities of an open-end or closed-end investment company or investment trust registered under 15 U.S.C. § 80a-1 to 80a-64 (Investment Company Act of 1940), as that act exists now or as amended in the future.
(b) The investments authorized in subsection (a) of this section may be made even if the financial institution, or an affiliate thereof, is providing services to the investment company and is receiving reasonable compensation for such services as an advisor, manager, sponsor, administrator, broker, distributor, custodian, shareholder servicing agent, transfer agent, registrar, or any related services. At least annually, the financial institution shall disclose in a clear and conspicuous manner to the principal of each fiduciary account the fees it has charged or received from the investment company, or an affiliate thereof, for such services and the basis upon which compensation is calculated, expressed either in a specific amount or as a percentage of asset value. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 204 - Powers of Financial Institutions › § 14501. Failure to pay rent; removal of contents

§ 14501. Failure to pay rent; removal of contents
(a) If the amount due for the use of any safe or box in the vaults of a financial institution is not paid for one year, or such other period as may be fixed in the contract of renting of such safe or box, the financial institution, at the expiration thereof, may cause to be sent to the person in whose name the safe or box stands on its books, a notice in writing that if the amount then due for the use of the safe or box is not paid within 60 days from the date of the notice, the financial institution will then cause the safe or box to be opened in the presence of an officer duly authorized by the governing body and of a notary public not an officer or in the employ of the financial institution, and the contents thereof, if any, will be sealed up by the notary in a package upon which the notary will distinctly mark the name and address of the person in whose name such safe or box stands upon the books of the financial institution and the estimated value thereof. The package so sealed and addressed, when marked for identification by the notary, will be placed by the notary in one of the general safes or boxes of such financial institution. The notice shall be sent in a postage prepaid registered letter directed to that person at his or her post office address as recorded upon the books of the financial institution, and at his or her last known address.
(b) The proceedings of the notary shall be fully set forth in the notary’s own handwriting and official seal in a book to be kept by the financial institution for that purpose. After such contents have been so placed in general safes or boxes, the financial institution shall be required to use only the degree of care required of a bailee for the sole benefit of the bailor notwithstanding the contract of renting requires a higher degree of care during the period of renting. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)