reglab/statecodes huggingface dataset:
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31106. Certificate to commence business; insurance; bond

§ 31106. Certificate to commence business; insurance; bond
(a) Upon receipt of the statement required in subsection 31105(b) of this title, the Commissioner shall cause an examination to be made to determine if the minimum share deposits have been credited to the account of the credit union, and that all requirements of this section and other provisions of law have been met.
(b) Upon completion of the examination, and if it appears to the Commissioner that the whole of the required share deposits has been paid in, the Commissioner shall issue a certificate under seal authorizing the credit union to commence business, and this certificate shall be filed with the Secretary of State.
(c) The certificate of authority to commence business shall be conclusive of the facts stated in the certificate, and it shall be unlawful for any credit union to begin transacting business until a certificate of authority to commence business has been granted.
The certificate of authority to commence business shall be conclusive of the facts stated therein, and it shall be unlawful for any credit union to begin transacting business until a certificate of authority to commence business has been granted.
(d) A credit union shall not commence business until its shares and deposits are insured by the National Credit Union Administration (NCUA) or its successor agency as required by section 31601 of this title.
(e) A credit union shall not commence business until it has acquired such bonds and insurance as required by section 31602 of this title.
(f) In the case of a violation of this provision, the officers and directors assenting to the activity shall be personally liable for all debts incurred before the certificate is issued and filed. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 324, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31107. Failure to commence business

§ 31107. Failure to commence business
(a) The proposed credit union’s certificate of approval and its right to do business shall lapse if the credit union fails to commence business as a credit union within two years after receiving a certificate of approval under section 31102 of this title.
(b) Notwithstanding the time limitation in subsection (a) of this section, the Commissioner may extend the period in which business shall be commenced for a period not to exceed six months upon written application by the proposed credit union setting forth the reasons for the extension, filed before the expiration of the time period established by subsection (a) of this section. The Commissioner shall notify the Secretary of State of any such extension granted by the Commissioner.
(c) Upon the expiration of the time periods set forth in subsections (a) and (b) of this section, the contributors of initial share deposits of such proposed credit union shall be entitled to the return of any amounts that they have paid to the credit union, and all expenses incurred in the organization of the proposed credit union shall be borne by the original organizers who were named in the application for permission to organize. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31108. Amendment to articles of incorporation

§ 31108. Amendment to articles of incorporation
(a) The articles of incorporation, or comparable organization document as applicable to the credit union, may be amended as provided in the bylaws. Notwithstanding the provisions of the bylaws, however, written notice of the meeting and text of the proposed amendment shall be given to each director at least seven days prior to the meeting and to each member in accordance with section 31408 of this title.
(b) The credit union shall file with the Commissioner within 10 days after its adoption one copy of any proposed amendment. The credit union shall not amend its articles or comparable organizational document without the written approval of the Commissioner.
(c) Following the Commissioner’s approval of the amendment, the credit union shall submit the amendment to the Secretary of State for filing as required by Title 11B. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31201. Bylaws; amendment of bylaws

§ 31201. Bylaws; amendment of bylaws
(a) The organizers applying for the organization of a credit union shall adopt bylaws that prescribe the manner in which the business of the credit union shall be conducted. The bylaws shall include at least the following:
(1) the name of the credit union, which name shall comply with the requirements of section 31202 of this title;
(2) the field of membership of the credit union and the qualifications for membership;
(3) the par value of shares;
(4) the number of directors, supervisory committee members, and advisory directors, if applicable, the length of terms they serve, and the permissible term length of any interim director or supervisory committee member and procedures for election or appointment;
(5) any qualification for eligibility to serve on the credit union’s governing body or supervisory committee;
(6) the frequency of regular meetings of the board and the supervisory committee, and the manner in which members of the board and supervisory committee are to be notified of meetings;
(7) the powers and duties of board officers;
(8) the manner in which a credit committee, credit manager, loan officer, or any combination thereof shall be responsible for the credit functions of the credit union;
(9) the timing and manner of conducting the annual membership meeting and the provisions for voting;
(10) the manner in which members may call a special membership meeting;
(11) the manner in which members are to be notified of membership meetings;
(12) the number of members constituting a quorum at a membership meeting;
(13) conditions for payment on, receipt of, or withdrawal of shares and deposits;
(14) provisions, if any, for the indemnification of directors, supervisory committee members, officers, employees, and others by the credit union, if not included in the articles of incorporation; and
(15) any other provision that is not inconsistent with this chapter and such other matters as the governing board deems necessary.
(b) The bylaws may be amended as provided in the bylaws. Written notice of the meeting and text of the proposed amendment, or a summary of the proposed amendment with a notice that a copy of the proposed amendment is available upon request, shall be hand-delivered or mailed to each director at least seven business days prior to any directors’ meeting to approve such amendment and shall be given to each member in the manner set forth in section 31408 of this title. Notice to a director may be given electronically if the director has specifically requested or consented to electronic notification of meetings.
(c) The credit union shall file with the Commissioner, within 10 days after its adoption, one copy of any proposed amendment. Any amendment to the bylaws of a credit union shall become effective only upon the written approval of the Commissioner. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31202. Credit union name

§ 31202. Credit union name
(a) The name of every credit union organized under this title shall include the phrase “credit union.” No credit union may adopt a name either identical to the name of any other credit union or entity doing business in this State or so similar to the name of any other credit union or entity doing business in this State as to be misleading or to cause confusion.
(b) No person, other than a credit union incorporated under this title, the acts of other states, the Federal Credit Union Act, an association of credit unions, or an organization or corporation, whose membership or ownership is limited to credit unions or credit union organizations, may use a name or title containing the phrase “credit union” or any derivation thereof, or may represent itself as a credit union or conduct business as a credit union. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31301. Number and election of directors

§ 31301. Number and election of directors
(a) The governing body of a credit union shall consist of an odd number of directors, at least five in number. The initial governing body shall be elected at the organizational meeting of the credit union as provided in subsection 31103(e) of this title, and thereafter by the members of the credit union at the annual meeting.
(b) Each director shall hold office for the term provided in the bylaws as long as the director is qualified to serve and until the director’s successor has qualified. The term of a director may not exceed three years. A director may serve more than one term. If directors are elected for terms in excess of one year, their terms of office shall be staggered so that, insofar as possible, an equal number expires each year. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31303. Executive committee

§ 31303. Executive committee
(a) The executive committee, if one is appointed by the governing body, shall consist of an odd number of no fewer than three directors of the credit union.
(b) The executive committee shall meet in accordance with section 31304 of this title and as often as necessary and shall act for the governing body between meetings of the governing body in all other matters except for approval of policies and amendments to the organizational documents or bylaws, subject to such conditions and limitations as prescribed by the governing body.
(c) The executive committee shall keep complete minutes of all of its actions, copies of which shall be submitted to the governing body at its next meeting. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31304. Meetings of governing body

§ 31304. Meetings of governing body
(a) The governing body of a credit union shall meet as often as necessary and at least monthly, provided that if the governing body delegates its authority to an executive committee, the executive committee shall meet during the months in which the governing body does not meet. The governing body shall meet at least six times a year, including once each quarter. The governing body and the executive committee, if appointed, shall keep complete minutes of all of their meetings, which minutes shall include the names of all persons present at each meeting. Minutes of the executive committee meetings shall be ratified by the governing board.
(b) Unless the bylaws provide otherwise, the governing body may permit any and all directors to participate in all except one meeting per year of the governing body through the use of any means of communication by which all directors participating in the meeting may simultaneously hear each other and communicate during the meeting. A director participating in a meeting by this means is deemed to be present at the meeting.
(c) At the meeting of the governing body following the annual meeting of members, the governing body shall elect officers of the governing board as provided in section 31305 of this title.
(d) Unless a greater number is required by the bylaws, a majority of the governing body shall constitute a quorum. The act of a majority of the directors present at a meeting at which a quorum is present shall be the act of the governing body unless the act of a greater number is required by this part or the bylaws of the credit union. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31305. Officers

§ 31305. Officers
(a) At the first regularly scheduled meeting of the entire governing body at which a quorum is present following the organizational meeting and thereafter following each annual meeting, but in no event more than 30 days after such organizational meeting or annual meeting of the members, as applicable, the directors shall elect from their own number a chairperson of the governing body, and one or more vice chairpersons, a treasurer, and a secretary. Only the treasurer and the secretary may be the same individual.
(b) Unless sooner removed, the terms of the officers shall be one year, or until their successors are chosen and have duly qualified.
(c) The duties of the officers shall be prescribed in the bylaws.
(d) The governing body shall appoint a person to act as the chief executive officer of the credit union and to be in charge of its operations.
(e) A credit union may use any titles it chooses for the officials holding the positions described in this section, provided such titles are not misleading.
(f) Any person elected to fill a vacancy caused by death, resignation, or removal of an officer shall be appointed by the governing body to serve for the unexpired term of such office until his or her successor is duly elected and qualified. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31307. Credit committee; credit manager

§ 31307. Credit committee; credit manager
(a) Except as provided in section 31313 of this title, the governing body may delegate, in accordance with its bylaws, all or part of its lending authority to a credit committee, a credit manager, one or more loan officers, or any combination thereof, who shall review and act on all applications for extensions of credit, or for release or substitution of collateral, in accordance with the loan policy prescribed by the governing body.
(b) If the bylaws of a credit union provide for a credit committee, such committee shall consist of an odd number of three or more members of the credit union and may be appointed by the governing body or elected by the members, as provided in the bylaws.
(c) No member of the credit committee shall simultaneously serve on the supervisory committee or on the governing body, and all such credit committee members shall be members of the credit union in good standing.
(d) The credit committee, if any, shall meet as often as necessary, but at least monthly. All actions by the committee shall be by majority vote of those members present at any meeting at which a quorum is present. A majority of the credit committee shall constitute a quorum. The credit committee shall keep complete minutes of all of its meetings, including the names of those present.
(e) The credit manager or loan officer shall provide to the governing body or the credit committee, if any, on at least a monthly basis, a complete listing of all applications for extensions of credit or for release or substitution of collateral that were reviewed and acted upon or, alternatively, inform the governing body that such information is available upon request.
(f) A credit manager or loan officer shall not disburse the funds of the credit union for any extension of credit approved by such credit manager or loan officer.
(g) An applicant for an extension of credit or release or substitution of collateral that has been disapproved by a credit manager or loan officer may appeal to the credit committee or, in the absence of a credit committee, to the governing body. In those instances where the credit committee made the initial denial of an applicant’s request for an extension of credit or release or substitution of collateral, the applicant may appeal to the governing body. Any such appeal to the credit committee or the governing body, as applicable, shall be acted upon at the next regular meeting of the credit committee or governing body. If the initial denial of the loan application has not been reviewed by the credit committee or governing body, as applicable, the notice of loan denial given to the member shall include a notice that the member has a right, upon written request, to appeal the loan denial to the credit committee or the governing body, as applicable. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31308. Duties of officers, directors, and committee members

§ 31308. Duties of officers, directors, and committee members
(a) All officers, directors, and members of any committees of a credit union subject to the laws of this State under this title shall comply with the standards for such officers and directors established under Title 11B. Members of committees of credit unions shall comply with the same standards as directors.
(b) All officers, directors, and members of the supervisory or credit committees of a credit union subject to the laws of this State under this title shall administer the affairs of the credit union fairly and impartially and without discrimination in favor of or against any particular member.
(c) All executive officers, directors, and committee members shall comply with the conflict of interest standards established pursuant to section 31313 of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2011, No. 21, § 11.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31309. Oaths of office; certificate of election

§ 31309. Oaths of office; certificate of election
(a) Within 10 days after election to any position, each person so elected or appointed shall execute an oath of office by which he or she agrees to accept, and diligently and faithfully to carry out, the duties and responsibilities of the position to which he or she has been elected and not negligently or willfully to violate, or permit to be violated, any provision of this title or the bylaws of the credit union.
(b) The chairperson of the governing body and the secretary shall execute a certificate of election, which shall set forth the names and addresses of the officers, directors, and committee members elected or appointed.
(c) The oath of office and the certificate of election shall be executed on forms prepared by the Department, and one copy of each shall be filed with the Department within 15 days after the election or appointment. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31310. Prohibited management interlocks

§ 31310. Prohibited management interlocks
(a) Except with the Commissioner’s prior written approval, a director, officer, or employee of any other credit union or financial institution shall not at the same time be a director, officer, or employee of a credit union with a place of business or doing business in the State of Vermont.
(b) The terms of this section shall not apply to:
(1) a credit union that is in liquidation, receivership, conservatorship, or similar proceedings;
(2) a corporate credit union;
(3) a credit union service organization affiliated by reason of common ownership or control of at least 25 percent of the voting interest of such affiliated credit union service organization; or
(4) any other relationship otherwise permitted under guidelines or regulations of federal supervisory authorities or the Commissioner adopted from time to time, relating to management interlocks. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31312. Vacancies

§ 31312. Vacancies
A vacancy on the governing body, the supervisory committee, or any other governing-body-appointed or member-elected committee that exists due to the death, resignation, or removal of a director or committee member shall be filled by majority vote of the remaining directors, regardless of whether the remaining directors constitute a quorum. A director or committee member appointed by the governing body to fill a vacancy on a committee where the members elect the members of such committee shall hold office until the next annual meeting, at which time the members of the credit union shall vote to fill the remainder of the unexpired term. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31314. Compensation; insurance; expenses

§ 31314. Compensation; insurance; expenses
(a) No officer of the governing body, no director, nor any committee member, other than the treasurer, may be compensated for services as such. However, providing reasonable health, accident, and similar insurance protection shall not be considered compensation.
(b) A credit union may, with the approval of a majority of the governing body, provide personal liability or indemnity insurance coverage for its directors and other committee members.
(c) Directors, officers of the governing body, and committee members may be reimbursed for necessary expenses incidental to the performance of official business of the credit union.
(d) Notwithstanding the foregoing, directors, officers of the governing body, and committee members may be compensated for services, other than duties performed as such director, officer of the governing body, or committee member, in accordance with the conflict-of-interest provision set forth in section 31313 of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31401. Field of membership

§ 31401. Field of membership
(a)(1) Except as provided in subdivision (2) of this subsection, the field of membership of a credit union is limited to:
(A) a single common bond membership;
(B) a multiple common bond membership;
(C) persons or organizations within one or more well-defined communities, neighborhoods, municipalities, or counties; or
(D) any combination of subdivisions (A), (B), or (C).
(2) Within the field of membership of a credit union, members may include:
(A) members of the immediate family or household of all members of the credit union included under subdivision (1)(A), (B), (C), or (D) of this subsection;
(B) organizers and employees of such credit union;
(C) the surviving spouse or party to a civil union of a deceased member of such credit union; and
(D) notwithstanding any change in employment, occupation, residence, or other condition initially controlling the eligibility for membership in any credit union, any person properly admitted to membership in a credit union who may continue membership during such person’s lifetime.
(3) The field of membership may include associations and organizations of individuals, the majority of whom are eligible for membership in such credit union, partnerships in which the majority of the partners are individuals who are eligible for membership in such credit union, corporations in which the majority of shareholders are individuals who are eligible for membership in such credit union, and such entities in which a majority of the employees are individuals who are eligible for membership in such credit union.
(b)(1) The Commissioner may approve an amendment to the bylaws of a credit union to expand its field of membership if the Commissioner finds that:
(A) the credit union has not engaged in any material unsafe or unsound practice during the one-year period preceding the date on which the proposed amendment is filed with the Commissioner;
(B) the credit union maintains its net worth in accordance with subchapter 5 of this chapter; and
(C) the credit union has the administrative capability to serve the proposed membership group and the financial resources to meet the need for additional staff and assets to serve the new membership group.
(2) The Commissioner may approve an amendment to the bylaws of a credit union to change its field of membership whenever the Commissioner determines that continued operation of the credit union without the proposed amendment may result in liquidation or merger of such credit union. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 328, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31402. Membership application

§ 31402. Membership application
The governing body shall act upon applications for membership as prescribed in its bylaws. The governing body may delegate its authority to act on applications for membership as provided in subdivision 31302(2) of this title. A person denied membership by a membership officer or membership committee may appeal the denial to the governing body. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31403. Liability of members

§ 31403. Liability of members
The members of the credit union shall not be personally or individually liable for the acts, debts, liabilities, or obligations of the credit union or the payment of the credit union’s debts solely by virtue of their membership in the credit union. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31404. Membership termination

§ 31404. Membership termination
(a) Any member may withdraw from a credit union at any time upon giving notice of withdrawal as required by the bylaws.
(b) Any member may be expelled by a majority vote of the members present at any regular membership meeting or a special membership meeting called to consider the matter at which a quorum is present, but only after the member has been given an opportunity to be heard.
(c) The governing body may expel a member by a majority vote of a quorum of directors, pursuant to a written policy adopted by the governing body. Any member may be expelled if he or she violates the membership agreement, any policy or procedure adopted by the governing body, the bylaws of the credit union, or if the member is physically or verbally abusive to credit union members or staff. If such a policy is adopted, written notice of the policy as adopted and the effective date of such policy shall be mailed to each member of the credit union at the member’s current address appearing on the records of the credit union no fewer than 30 days prior to the effective date of such policy. In addition, each new member shall be provided written notice of any such policy prior to or upon applying for membership. Copies of such policies shall be available to members upon request. Any person expelled by the governing body shall have the right to request a hearing before the governing body to reconsider the expulsion.
(d) A person whose membership has been terminated, whether by withdrawal or expulsion, shall have no further rights in the credit union, but is not released from any obligation owed to the credit union.
(e) A member who has been expelled as provided in this section may not be readmitted to membership except upon approval by a majority vote of the governing body after application and proof that the applicant remains within the credit union’s field of membership; has adequately explained, addressed, or remedied the conditions leading to expulsion; and will abide by the terms and conditions of membership. Not more than one such application for readmission may be made within any 12-month calendar period. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31405. Suspension of services

§ 31405. Suspension of services
A credit union may suspend or limit the use of services to credit union members who have caused a loss to the credit union, who have violated the membership agreement or any policy adopted by the governing body, or who are physically or verbally abusive to credit union members or staff. Members with suspended or limited services may maintain a share account and may continue to vote at annual and special membership meetings. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31406. Meetings of members

§ 31406. Meetings of members
(a) The annual meeting and any special meetings of the members of the credit union shall be held in accordance with the bylaws.
(b) On all questions and elections brought to the membership for a vote, each member shall have one vote, regardless of the member’s shareholdings. No member may vote by proxy, but a member may vote by early voter absentee ballot, mail ballot, or other method if the bylaws of the credit union so provide.
(c) The bylaws may establish a minimum age, not greater than the age of majority as defined in 1 V.S.A. § 173, as a qualification of eligibility to vote at meetings of the members. A minor, as defined in 1 V.S.A. § 173, may not be a voting member of the governing body, the supervisory committee, or any other appointed or elected committee.
(d) An organization having membership in the credit union may be represented and have its vote cast by an officer of the organization or its designated agent so authorized by the organization’s governing body as evidenced by a certified copy of such authorization provided to the credit union before the vote is cast. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31407. Special membership meetings

§ 31407. Special membership meetings
(a) The supervisory committee by a majority vote may call a special meeting of the members to consider any violation of this part, any other law or regulation applicable to the credit union, the credit union’s articles of incorporation or bylaws, or any practice of the credit union deemed unsafe or unauthorized by the supervisory committee.
(b) The bylaws may also prescribe the manner in which a special meeting of the members may be called by the members or by the governing body, or both. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31408. Notice to members of annual and special meeting

§ 31408. Notice to members of annual and special meeting
(a) Notice of any annual or special meeting shall be given in accordance with the requirements of the Vermont Nonprofit Corporation Act, Title 11B, Vermont Statutes Annotated. Notice may be given electronically if the member has specifically requested or consented to electronic notification of meetings.
(b) Notice of any special meeting shall state the purpose for which it is to be held, and no business other than that related to the purpose set forth in the notice shall be transacted at the special meeting. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31502. Regular reserve account

§ 31502. Regular reserve account
(a) Every credit union shall accumulate and maintain a regular reserve account that shall be held to meet losses until the credit union is dissolved, when it may be distributed among the members. The regular reserve account shall be accumulated and regulated pursuant to standards established by the Commissioner, as the same may be amended from time to time.
(b) Any sums recovered on items previously charged to the regular reserve account shall be credited to the regular reserve account.
(c) Except as permitted under subsection 31506(b) of this title, the governing body of a credit union shall not transfer any part of the regular reserve account to the undivided earnings account without the prior written approval of the Commissioner. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31503. Allowance for loan and lease loss

§ 31503. Allowance for loan and lease loss
(a) An allowance for loan and lease loss account shall be established and maintained in an amount that represents the current estimated loss on loans and leases. The allowance for loan and lease loss account requirement shall be computed and adjusted through the provision for loan and lease loss expense account prior to the payment of dividends. This account shall be calculated in accordance with standards established by the Commissioner, as the same may be amended from time to time.
(b) Any sums recovered on items previously charged to allowance for loan and lease loss account shall be credited to the allowance for loan and lease loss account. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31504. Unrealized gain or loss on available for sale securities

§ 31504. Unrealized gain or loss on available for sale securities
(a) An unrealized gain or loss on available-for-sale securities account shall be established and maintained in an amount that represents the current estimated gain or loss on investments.
(b) Changes to the allowance for unrealized gain or loss on securities account resulting from appreciation or depreciation in the value of shares or securities acquired in accordance with the provisions of this chapter shall be accounted for in accordance with standards established by the Commissioner, as the same may be amended from time to time. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31505. Additional or special reserves

§ 31505. Additional or special reserves
If the Commissioner determines that any reserve account is inadequate for any reason, he or she may require the establishment of such additional or special reserves as he or she deems necessary for the protection of the members. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31507. Standards

§ 31507. Standards
For purposes of this subchapter, in the absence of standards otherwise prescribed by the Commissioner, a credit union shall follow the standards established by the National Credit Union Administration (NCUA). In the event standards established by the NCUA require the credit union to accumulate or maintain accounts in an amount in excess of the standard established by the Commissioner, the credit union shall accumulate and maintain such accounts in a manner sufficient to satisfy the requirements of the NCUA. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 329, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31601. Share insurance

§ 31601. Share insurance
(a) Every credit union authorized to do business in this State under this title shall ensure its members’ shares with the National Credit Union Administration (NCUA) or the successor to that federal agency.
(b) A credit union insured under this section shall have the duty and power to comply with all statutes and regulations governing insurance of shares by the NCUA, provided that nothing contained in this section shall be construed as repealing, modifying, or impairing any powers, duties, rights, or responsibilities of the Commissioner, or the credit union so insured, under the provisions of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31602. Bonds and insurance

§ 31602. Bonds and insurance
(a) Every credit union authorized to do business in this State under this title shall acquire and maintain a blanket fidelity bond covering the directors, officers, employees, members of official committees, attorneys at law, and other agents with protection against loss caused by dishonesty, burglary, robbery, larceny, theft, holdup, forgery or alteration of instruments, misplacement or mysterious disappearance, and for faithful performance of duty in an amount not less than the amount prescribed by the Commissioner. The Department shall prescribe in its rules the amount of minimum bond coverage required for all credit unions according to their asset categories.
(b) Every credit union authorized to do business in this State under this title shall acquire and maintain suitable insurance to protect the credit union against burglary, robbery, theft, and other insurable hazards to which the credit union may be exposed.
(c) To the extent not otherwise covered by subsections (a) and (b) of this section, every credit union authorized to do business in this State under this title shall acquire and maintain such bonds and insurance to the extent the same is required by 12 C.F.R. Part 713, as amended from time to time.
(d) The Commissioner may require a credit union authorized to do business in this State under this title to secure additional bonds and insurance. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31701. General application

§ 31701. General application
(a) Any corporate credit union chartered by the Commissioner shall be subject to such rules and orders as the Commissioner deems appropriate and, except as otherwise specifically provided in such rules or orders, shall be vested with or subject to the same rights, privileges, duties, restrictions, penalties, liabilities, conditions, and limitations that would apply to all Vermont state-chartered credit unions.
(b) A corporate credit union shall be federally insured by the National Credit Union Administration (NCUA), or its successor, and shall be subject to such regulations and orders as the NCUA or its successor deems appropriate. In the event State laws or rules are inconsistent with the regulations of the NCUA or its successor, the federal regulations will supersede. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 330, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31702. Organization

§ 31702. Organization
(a) Application to form a corporate credit union shall be made in writing to the Commissioner. A corporate credit union shall be organized and operated under the provisions of this part, except to the extent such provisions are not consistent with this subchapter.
(b) A corporate credit union shall use the word “corporate” in its name. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31703. Membership

§ 31703. Membership
(a) Membership in the corporate credit union may consist of Vermont-chartered credit unions, any other state-chartered credit union, any federally chartered credit union, organizations or associations of credit unions, and such other organizations provided for in the articles of incorporation.
(b) A member of the corporate credit union shall designate one person to be its authorized representative to attend meetings of the corporate credit union and to vote on behalf of the member. A credit union member of the corporate credit union may only designate a member of its own credit union as its authorized representative. No person may serve as the authorized representative of more than one member of the corporate credit union. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31704. Purposes

§ 31704. Purposes
A corporate credit union is a credit union whose members consist primarily of other credit unions and whose purposes are to:
(1) accumulate and prudently manage the liquidity of its member credit unions through interlending and investment services;
(2) act as an intermediary for credit union funds between members and other corporate credit unions;
(3) obtain liquid funds from other credit union organizations, financial intermediaries, and other sources;
(4) foster and promote in cooperation with other state, regional, and national corporate credit unions and credit union organizations or associations the economic security, growth, and development of member credit unions; and
(5) perform such other financial services of benefit to its members that are authorized by the Commissioner. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31705. Powers

§ 31705. Powers
A corporate credit union shall enjoy the powers and privileges of any other credit union incorporated under this part in addition to those powers enumerated in this subchapter, notwithstanding any limitation or restrictions found elsewhere in this part. The Commissioner may adopt such rules concerning the establishment and operation of corporate credit unions as he or she deems necessary and proper. Subject to such rules, a corporate credit union may:
(1) accept shares or deposits in any form from its members; from other state, regional, or national corporate credit unions; and from credit union organizations and associations;
(2) make loans to its members; to other credit unions; and to other state, regional, and national corporate credit unions, organizations, and associations of credit unions;
(3) establish lines of credit for members and participate with other credit unions in making loans to its members under the terms and conditions determined by the board of directors;
(4) invest in the shares of or make deposits in credit unions;
(5) borrow money, accept demand deposits, and issue notes or debentures;
(6) acquire or sell the assets and assume the liabilities of a member; and
(7) enter into agreements with credit unions to discount or purchase loans made pursuant to government-guaranteed loan programs, real estate loans made by members, or any obligations of the United States or any agency thereof held by members. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 331, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 221 - Organization and Management of Credit Union › § 31706. Reserves

§ 31706. Reserves
Each corporate credit union shall maintain such reserves and accounts as required by the regulations of the National Credit Union Administration, or its successor, as amended from time to time. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 332, eff. July 1, 2022.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32101. Applicability of chapter

§ 32101. Applicability of chapter
The provisions of this chapter set forth the powers granted to all credit unions organized pursuant to this part and offices of any state-chartered credit union authorized to do business in Vermont under this title. The powers, privileges, duties, and restrictions conferred and imposed in the articles of association of any credit union organized under the prior laws of this State are abridged, enlarged, or modified to conform the articles of association to this title. Notwithstanding anything in the articles of association of such a credit union, every such credit union possesses the powers, rights, and privileges and is subject to the duties, restrictions, and liabilities conferred and imposed by this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32103. Expanded powers of Vermont credit unions

§ 32103. Expanded powers of Vermont credit unions
(a) Subject to the requirements of this section, in addition to all other powers permitted under these statutes, a credit union may exercise any of the powers or engage in any activity conferred upon a federal credit union chartered under the laws of the United States of America.
(b) Prior to engaging in such power or activity, the credit union shall notify the Commissioner of its intent to engage in the activity or power conferred upon a federal credit union. The notification shall identify the power or activity, shall identify the specific federal law or regulation that permits such power or activity, shall identify any Vermont law or regulation that may prohibit or restrict such power or activity, and shall provide such additional information as the Commissioner may request.
(c) If the Commissioner determines that such power or activity is permitted by federal law or regulation, that such power or activity would not adversely affect the safety or soundness of such credit union, and that such power or activity is not prohibited or restricted by any other applicable Vermont law or regulation, the Commissioner shall issue a written letter of nonobjection to the credit union’s engaging in such power or activity. A credit union shall not engage in such power or activity without first obtaining a written letter of nonobjection from the Commissioner.
(d) The Commissioner shall respond to the credit union’s notification within the time frame set forth in section 30804 of this title.
(e) In the event the Commissioner objects to the credit union’s proposed power or activity, the credit union shall have the reconsideration and appeal rights set forth in section 30805 of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
2023 Vermont Statutes › Title 8 - Banking and Insurance › Chapter 222 - Powers › § 32104. Investments

§ 32104. Investments
(a) A Vermont credit union may invest its assets prudently in accordance with the best judgment of its governing body, subject to the limitations set forth in this section and in the credit union’s adopted investment policy.
(b) A Vermont credit union’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.
(c) Funds not used in loans to members may be invested:
(1) in loans to or in shares or deposits of other credit unions and central credit unions, corporate credit unions, or a central liquidity facility established under state or federal law;
(2) in the capital shares, obligations, or preferred stock issues of any agency or an association organized either as a stock company, mutual association, or membership corporation, provided the membership or stockholdings, as the case may be, of such agency or association are primarily confined or restricted to credit unions or organizations of credit unions and provided the purposes for which the agency or association is organized are designed primarily to service or otherwise assist credit union operations;
(3) in shares of a cooperative society organized under the laws of this State or of the laws of the United States in the total amount not exceeding 10 percent of the shares, deposits, and surplus of the credit union;
(4) in loans to any credit union association or corporation, national or state, of which the credit union is a member, except that the investments shall be limited to two percent of the assets of the credit union;
(5) in any investment legal for financial institutions as they are defined in subdivision 11101(32) of this title, but in no event common stock. (Added 2005, No. 16, § 1, eff. July 1, 2005.)