The Vermont Statutes Online

Title 8: Banking and Insurance

Chapter 220: Supervision and Regulation

• Subchapter 001: Definitions

• § 30101. Definitions

  As used in this part:

  (1) “Chief executive officer” means the person appointed by the governing body to be in charge of the operations of the credit union, regardless of the title given to such person.

  (2) “Commissioner” means the Commissioner of Financial Regulation.

  (3) “Community development credit union” means a credit union that serves predominantly low-income members, as defined by the Commissioner, or a credit union that meets the requirements of a community development financial institution as defined in the Community Development Banking and Financial Institutions Act of 1994, 12 U.S.C. § 4702(5).

  (4) “Corporate credit union” means a credit union organized under chapter 221, subchapter 7 of this title whose field of membership consists primarily of other credit unions.

  (5) “Credit union” means any Vermont credit union, state credit union, or federal credit union.

  (6) “Credit union service organization” or “CUSO” means an entity, organized under chapter 222, subchapter 7 of this title or organized under state or federal law, whose services are closely related to credit union business, are convenient and useful to credit union business, are reasonably related to the operations of a credit union, or are financial in nature, as determined by the Commissioner.

  (7) “Department” means the Vermont Department of Financial Regulation.

  (8) “Director” means a member of the governing body of a credit union.

  (9) “Executive committee” means the committee, if any, established by the governing body under section 31303 of this title.

  (10) “Federal credit union” means a credit union organized pursuant to the Act of Congress, entitled the “Federal Credit Union Act,” 12 U.S.C. Chapter 14, as amended.

  (11) “Financial institution” means a financial institution as defined in subdivision 11101(32) of this title.

  (12) “Governing body” means the body that oversees the affairs of a credit union. The governing body may also be referred to as the “board of directors,” “board of trustees,” or “board of managers,” depending upon the organizational structure of the credit union.

  (13) “Home state” means, for a federal credit union, the state in which the main office of the federal credit union is deemed to be located, and for a state credit union, the state by which the credit union is chartered.

  (14) “Host state” means a state, other than the home state of a credit union, in which the credit union maintains or seeks to establish and maintain an office.

  (15) “Immediate family member” means persons related by blood, civil marriage, or civil union and includes foster children, stepchildren, and adopted children, as well as surviving spouses of persons who were members in good standing at the time of their death.

  (16) “Insider” means a director, an executive officer, a member of a governing-body-appointed committee, a member of an elected committee, a member of senior management, or any person identified by the governing body as someone who participates or has authority to participate in the major policy making functions of the credit union.

  (17) “Member” means a person or entity within the credit union’s field of membership who has been duly admitted as a member, has paid any required entrance or membership fee, has paid in one or more shares, and has complied with such other requirements as the organizational documents specify.

  (18) “Member business loan” means any loan, line of credit, or letter of credit, the proceeds of which will be used by the member for the following purposes, subject to rules adopted by the Commissioner:

  (A) commercial;

  (B) corporate;

  (C) agricultural; or

  (D) other business investment property or venture.

  (19) “Net worth” means the retained earnings balance of the credit union at quarter end as determined under generally accepted accounting principles. Only undivided earnings, including any segregated allocations of undivided earnings, are included in net worth. For community development credit unions, net worth also includes secondary capital accounts that are uninsured and subordinate to all other claims.

  (20) “Organizational document” means the credit union’s charter, certificate of organization, articles of incorporation, articles of association, articles of organization, bylaws or other internal governance documents, operating agreement, partnership agreement, or any other similar document pertaining to the credit union.

  (21) “Regular reserve account” means the account established and maintained in accordance with section 31502 of this title for the purpose of absorbing losses that exceed undivided earnings and other appropriations.

  (22) “Reserves” means all reserves, including the allowance for loan and lease losses account, undivided earnings or surplus, and accumulated gain or loss on available for sale securities.

  (23) “Retained earnings” means undivided earnings, regular reserves, and any other appropriations designated by management or by state or federal regulatory authorities.

  (24) “State credit union” means a credit union organized under the laws of a state other than Vermont or by special act of the legislature of a state other than Vermont and is regulated in its home state in an equivalent manner, as determined by the Commissioner, to a Vermont credit union. Nothing in this definition shall be deemed to be a grant of authority to any person to operate as a credit union unless otherwise authorized under law.

  (25) “Supervisory committee” means the committee established in accordance with the standards and procedures established in section 31306 of this title.

  (26) “Vermont credit union” means a credit union organized under the laws of the State of Vermont. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2009, No. 3, § 12a, eff. Sept. 1, 2009; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)

• Subchapter 002: Administration

• § 30201. Administration

  Any state-chartered credit union organized or operating in Vermont shall be under the supervision of the Commissioner of Financial Regulation. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)

• § 30202. Fees and Department expenses

  The provisions of sections 18 and 19 of this title shall apply to credit unions in the same manner as they apply to financial institutions. Except for fees related to the formation of a credit union, formation of a credit union service organization, and formation of a corporate credit union, credit unions with less than $30 million in assets shall not be charged more than $100.00 per service for the services described in subsection 19(a) of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30203. Rules and regulations

  The Commissioner may adopt rules as may be necessary for the proper conduct of credit unions organized or operating under chapters 220–226 of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 319, eff. July 1, 2022.)

• Subchapter 003: Office Hours and Emergencies

• § 30301. Office hours

  (a) A credit union shall establish the days and hours its offices are open for business. The credit union’s governing body is responsible for determining the scope of operations of each office, including the services to be provided and the days and hours of operation.

  (b) A credit union shall post the days and hours of operation at or near the public entrances to its offices and shall provide customers with reasonable advance notice of reduction in services or hours of operation.

  (c) Any act authorized, required, or permitted to be performed at, by, or with respect to any credit union on a day the credit union is closed may be performed on the next succeeding day the credit union is open for business, and liability or loss of rights of any kind to such credit union shall not result from this delay.

  (d) A copy of such schedule of office hours shall be filed with the Commissioner. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30302. Closing for cause

  A credit union may temporarily close any of its offices for reasons that include good cause, extreme weather conditions, and community events. If a credit union temporarily closes any of its offices for all or any part of a day it is normally open for business, the credit union shall post a conspicuous notice of the closing at all points of public access to the closed offices. A closing may not become effective until such notice is posted at the office to be closed. Posting this notice relieves the credit union from liability for failure to perform any of the business of the credit union at the closed offices. The Commissioner may adopt rules governing the form and content of the notice required under this section and may require dissemination of the notice of closing by any other reasonable means. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30303. Emergency closing by credit union

  If an emergency arises or is so imminent and immediate as to interfere with or threaten the conduct of normal business transactions or the safety and welfare of a credit union’s plant, assets, or personnel, the credit union officer or official in charge of any office open to the public may determine not to open the office so threatened or close the same, if open. The credit union shall notify the Commissioner of the emergency closing as soon as reasonably possible. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• Subchapter 004: Records

• § 30401. Preservation of records

  (a) A Vermont credit union and any state-chartered credit union with an office in this State shall keep such books, accounts, and records relating to all of its transactions that will enable the Commissioner to ensure full compliance with the laws of this State. Each such credit union shall retain its business records for such periods as prescribed by the Commissioner by regulation.

  (b) Any such credit union may dispose of any record that has been retained for the period prescribed by or in accordance with the regulation for retention of records of its class, and thereafter shall be under no duty to produce the record in any action or proceeding.

  (c) Records required to be preserved and retained by law or regulation may be maintained in paper, photograph, microprocess, magnetic, digital, mechanical, or electronic media, or in or by any other information storage device or process that forms a durable medium providing reasonable assurances against tampering and degradation of any reproduction of the original record, and that can be accurately transferred to paper in a legible written form within a reasonable time. Records maintained in a computer-based format shall be archival in nature only, so as to preclude the possibility of alteration of the content of the record by computer once the record has been transferred to that format. Any record reproduced from a record maintained in compliance with this subsection shall have the same force and effect as the original thereof and may be admitted in evidence equal to the original. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• Subchapter 005: Reports

• § 30501. Financial reports

  (a) The Commissioner shall require each credit union to submit a quarterly report of its condition within 30 days of the end of each calendar quarter in such manner and on such forms as the Commissioner may require. Reports shall be verified to be true, correct, and complete by the oath of the person preparing the report.

  (b) The Commissioner may require a credit union to file additional reports or special reports at such frequency and within such time periods as the Commissioner may require in his or her discretion. The Commissioner may require that such additional or special reports include such information and be in such format as the Commissioner may direct.

  (c) Promptly following the completion of any annual audit, any verification of member accounts, or any other verification or examination performed by or at the request of the supervisory committee, the supervisory committee shall file a copy of such written report with the governing body.

  (d) Each credit union shall forward to the Commissioner a copy of all reports required by the National Credit Union Administration, or any successor thereof.

  (e) If any report is not filed by the date it is due, a fine of not more than $100.00 for each day the report remains in arrears may be levied against the offending credit union. If the report is not filed within 15 days of the due date, the Commissioner may, after written notice to the chief executive officer of the credit union of its intention to do so, suspend or revoke the certificate of approval, issue a cease and desist order, take possession of the business and property of the credit union, order its liquidation in accordance with section 36101 of this title, or take any other action permitted by law or regulation.

  (f) The Commissioner, in his or her discretion, may accept reports filed with other regulators for purposes of the requirements of this section. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30502. Periodic reports from state credit unions with an office or activity in this State

  (a) The Commissioner may require periodic reports from any state-chartered credit union that has established and maintains an office in this State or that conducts any activity in this State.

  (b) Any reporting requirements prescribed by the Commissioner under this section shall be:

  (1) consistent with the reporting requirements applicable to credit unions incorporated under the laws of this State; and

  (2) appropriate for the purpose of enabling the Commissioner to carry out his or her responsibilities under the laws relating to branching, offices, or activities. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30503. Exemption from annual report to Secretary of State

  Vermont credit unions shall not be required to make any annual report to the Vermont Secretary of State. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• Subchapter 006: Examinations

• § 30601. Examinations

  (a) The Commissioner shall conduct a regular examination of the condition of each Vermont credit union at least once every three years or more frequently as the Commissioner deems prudent.

  (b) The Commissioner may at any time conduct a special examination or may expand the scope of any regular examination. An entity examined pursuant to this subsection shall be responsible for examination fees and expenses as provided in sections 18 and 19 of this title.

  (c) The Commissioner shall be given access to all the files, books, accounts, securities, and assets of the credit union and any person under contract with it to perform services for the credit union that the Commissioner deems material to the financial condition of the credit union and shall be afforded every reasonable facility for making an examination of the affairs of the credit union and such person under contract.

  (d) Whenever the Commissioner deems it necessary, the Commissioner may examine any company that is owned in whole or in part by a Vermont credit union or that is found by the Commissioner to be controlled by a Vermont credit union.

  (e) A report of the examination shall be forwarded to the chairperson of the credit union’s governing body after the completion of the examination. The report shall contain comments relative to the management of the affairs of the credit union and also as to the general condition of its assets. Within 30 days of the receipt of the report, a general meeting of the directors and committee members shall be called to consider matters contained in the report. Upon request of the credit union, a representative of the Department shall attend the meeting. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30602. Confidentiality of investigation and examination reports

  (a) Regardless of source, all records of investigations, including information pertaining to a complaint by or for a consumer, and all records and reports of examinations by the Commissioner, whether in the possession of a supervisory agency or another person, shall be confidential and privileged, shall not be made public, and shall not be subject to discovery or introduction into evidence in any private civil action. No person who participated on behalf of the Commissioner in an investigation or examination shall be permitted or required to testify in any such civil action as to any findings, recommendations, opinions, results, or other actions relating to the investigation or examination. The Commissioner may, in his or her discretion, disclose, publish, or authorize the disclosure or publication of any such record or report or any part thereof to civil or criminal law enforcement authorities for use in the exercise of such authority’s duties, in such manner as the Commissioner may deem proper.

  (b) For the purposes of this section, records of investigations and records and reports of examinations shall include joint examinations by the Commissioner and any other supervisory agency. When such records are considered confidential by such agency or foreign government and the records are in the possession of the Commissioner, records of investigations and reports of examinations shall also include records of examinations and investigations conducted by:

  (1) any supervisory agency; and

  (2) the supervisory agency of any foreign government with jurisdiction over any credit union. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30603. Examinations by federal regulatory agencies; departmental participation

  Where an examination is normally conducted by the Department jointly with a federal regulatory authority, the Commissioner, at such times as the Commissioner deems necessary or appropriate because of departmental fiscal restraints, may reduce or eliminate the department’s participation in such examination. Where the Commissioner determines such reductions are necessary or appropriate, the Commissioner is authorized to rely on the examination report of the federal regulatory authority as the basis for exercising his or her powers and discharging his or her responsibilities under this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30604. Examinations; cooperative agreements

  (a) To the extent consistent with section 30605 of this title, the Commissioner may make such examinations of any office established and maintained in this State by a state credit union as the Commissioner may deem necessary to determine whether the office is being operated in compliance with the laws of this State and in accordance with safe and sound practices. The provisions of sections 18, 19, 30601, 30602, and 30603 of this title shall apply to such examinations.

  (b) The Commissioner may enter into contracts with any credit union supervisory agency that has concurrent jurisdiction over a Vermont credit union or a state credit union maintaining an office or location in this State to engage the services of such supervisory agency’s examiners, or to provide the services of the Commissioner’s examiners to such supervisory agency.

  (c) The Commissioner may enter into joint examinations or joint enforcement actions with other supervisory agencies having concurrent jurisdiction over any activity engaged in by a credit union in Vermont, over any office or location established and maintained in this State by a state credit union, or any office or location located in any host state that is established and maintained by a Vermont credit union, provided that the Commissioner may at any time take such actions independently if the Commissioner deems such actions to be necessary or appropriate to carry out his or her responsibilities under this title or to ensure compliance with the laws of this State; but provided further, that in the case of a credit union that has its principal place of business in a state other than this State, the Commissioner shall recognize the authority of the home state regulator over organizational governance matters and the primary responsibility of the home state regulator with respect to safety and soundness. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30605. Cooperative and other agreements

  (a) The Commissioner may enter into cooperative, coordinating, and information-sharing agreements with any other governmental agency, the Federal Home Loan Bank, or any organization affiliated with or representing one or more governmental agencies with respect to the periodic examination or other supervision of any activity, office, or location in this State of a state credit union, or any activity or office of a Vermont credit union located in any host state. Such agreements may be used to resolve conflicts arising from inconsistent regulatory requirements and to specify the manner in which any application process under section 33102 or 33103 of this title shall be coordinated.

  (b) Agreements under this section may also be entered with any other regulatory agencies on matters affecting any credit union organized or doing business in this State. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2017, No. 1, § 3, eff. Feb. 23, 2017.)

• Subchapter 007: Enforcement

• § 30701. Enforcement powers of Commissioner

  (a) The Commissioner may:

  (1) Restrict the withdrawal of share or deposit accounts from a Vermont credit union or a Vermont office of a state-chartered credit union when the Commissioner finds that extraordinary circumstances make the restriction necessary for the proper protection of members in the affected credit union.

  (2) Order any person to cease violating this title, a lawful regulation, or order of the Commissioner issued under it, or to cease engaging in any unsafe or unsound practice.

  (3) Except as provided in subdivision (4) of this subsection, impose an administrative penalty of not more than $15,000.00 upon any credit union or any person who, for each violation of this title, a lawful regulation, or order of the Commissioner issued under it:

  (A) knowingly violates this title or a lawful regulation or order issued under it;

  (B) has knowingly engaged or participated in any materially unsafe or unsound practice in connection with a credit union; or

  (C) has knowingly committed or engaged in any act, omission, or practice that constitutes a breach of fiduciary duty to the credit union, including violations of section 31313 of this title.

  (4) Impose an administrative penalty of not more than $100.00 per day on any person who fails without good cause to file any report or other filing under this title when due.

  (5) Remove from a Vermont credit union or state credit union regulated under this title any director, officer, committee member, employee, agent of the credit union, or other person who:

  (A) knowingly violates this title or a lawful regulation or order issued under it;

  (B) is convicted of a crime involving dishonesty;

  (C) has knowingly engaged or participated in any materially unsafe or unsound practice in connection with the credit union;

  (D) has knowingly committed or engaged in any act, omission, or practice that constitutes a breach of fiduciary duty to the credit union; or

  (E) is not eligible for bond coverage or who loses his or her ability to be covered by a bond.

  (b) In determining the amount of any administrative penalty assessed pursuant to this section, the Commissioner shall consider the following factors:

  (1) the appropriateness of the administrative penalty with respect to the financial resources and good faith of the person or credit union charged;

  (2) the gravity of the violation or practice;

  (3) the history of previous violations or practices of a similar nature;

  (4) the economic benefit, if any, derived by any person from the violation or practice;

  (5) whether the credit union has suffered or probably will suffer financial loss or other damage;

  (6) whether the interest of members could be seriously prejudiced by such violation, practice, or breach of fiduciary duty; or

  (7) other factors as justice may require.

  (c)(1) Except as provided in subdivision (2) of this subsection, the Commissioner shall provide notice of any enforcement order proposed pursuant to this section and the grounds therefore by mail to the credit union and to any person named as a party to the enforcement proceeding. The credit union or any person so served may, within 30 days after service on the credit union, request that the Commissioner hold a hearing. If no hearing is requested, the proposed order shall become final 30 days after service on the credit union or such person. The provisions of 3 V.S.A. chapter 25 and any applicable Department rules shall govern any hearing held by the Commissioner under this section. An appeal under this section shall be filed within 30 days after the date of the Commissioner’s decision and shall be to the Washington Superior Court.

  (2) Notwithstanding subdivision (1) of this subsection, the Commissioner may, ex parte without notice, issue any enforcement order under this section in any case in which the Commissioner determines such action is necessary to:

  (A) conserve the assets of any credit union; or

  (B) protect the interests of the members of such credit union.

  (d) The hearing on a removal order shall be private unless the Commissioner determines that a public hearing is necessary to protect the public interest. If the Commissioner deems it necessary to ensure the continued safety and soundness of the credit union, the Commissioner may, in his or her discretion, order an immediate suspension of any person pending completion of further administrative proceedings on his or her removal. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2013, No. 29, § 18, eff. May 13, 2013; 2021, No. 105 (Adj. Sess.), § 320, eff. July 1, 2022.)

• § 30702. Power of Commissioner to impose corrective action

  (a) The Commissioner may, in addition to any other powers exercisable by the Commissioner under the provisions of this title, require a Vermont credit union or state credit union with an office in this State to:

  (1) maintain its accounts in accordance with such rules as the Commissioner may prescribe having regard to the size of the organization;

  (2) observe methods and standards that the Commissioner may prescribe for determining the value of various types of assets;

  (3) charge off or sell the whole or part of an asset that was acquired in violation of:

  (A) the credit union’s investment policy;

  (B) the credit union’s loan policy; or

  (C) an order of the Commissioner;

  (4) write down an asset to its market value;

  (5) record liens and other interests in property;

  (6) obtain a financial statement from a borrower to the extent that the credit union can do so;

  (7) obtain insurance against damage to real estate taken as security;

  (8) search, or obtain insurance of, the title to real estate taken as security;

  (9) maintain adequate insurance against such other risks as the Commissioner may deem necessary and appropriate for the protection of members and the public; and

  (10) maintain such additional policies and procedures as the Commissioner may require.

  (b) Any order of the Commissioner issued under this section shall be subject to subsection 30701(c) of this title. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 321, eff. July 1, 2022.)

• § 30703. Criminal penalties

  (a) It shall be a criminal offense, punishable by a fine of not more than $1,000.00 or imprisonment of not more than one year, or both, for any person to violate any existing order of the Commissioner or, after receipt of a removal order or an order assessing a penalty, to perform any duty or exercise any power of or on behalf of any credit union until the penalty has been satisfied, or otherwise satisfactorily resolved between the parties, or the removal or penalty order is vacated by the Commissioner or by a court of competent jurisdiction.

  (b) It shall be a criminal offense, punishable by a fine of not more than $10,000.00 or imprisonment of not more than one year, or both, for any person to violate willfully any existing order of the Commissioner or, after receipt of a removal order or an order assessing a penalty, to perform willfully any duty or exercise any power of or on behalf of any credit union until the penalty has been satisfied, or otherwise satisfactorily resolved between the parties, or the removal or penalty order is vacated by the Commissioner or by a court of competent jurisdiction.

  (c) An executive officer, director, or an appointed or elected member of a credit union committee subject to the laws of this State under this title who willfully misapplies any of the monies, funds, or credits of such credit union or any of the monies, funds, assets, or securities entrusted to the care of such credit union, or to the care or custody of such executive officer, director, or member, shall be fined not more than $100,000.00 or imprisoned not more than five years, or both. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30704. Indemnification

  A credit union shall not indemnify any person for any penalty or fine imposed under this title. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30705. Commissioner’s coordination of enforcement and corrective action with home state

  The Commissioner shall promptly give notice to the home state supervisory agency of each enforcement or corrective action proposed to be undertaken against a state credit union and, to the extent practicable, shall consult and cooperate with the home state regulator in pursuing and resolving such enforcement action. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• Subchapter 008: Application Process

• § 30801. Application of subchapter

  (a) An application required to be filed under chapter 221, 224, or 225 of this title for the approval of the Commissioner, including an application for a charter, merger, acquisition, conversion, change in bylaws, change in organizational documents, or other similar request, shall be submitted to and considered by the Commissioner in accordance with the provisions of this subchapter.

  (b) An application required to be filed under chapter 222 or 223 of this title for the approval of the Commissioner shall be filed on a form prescribed by the Commissioner and considered in accordance with the standards in section 30803 of this title. If the Commissioner finds that the application promotes the general good, a certificate of approval may be issued in summary fashion. No further approval shall be required.

  (c) Nothing in this subchapter shall prevent the Commissioner from issuing a certificate of approval for any application that the Commissioner finds may be approved as filed without further process. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30802. Applications

  (a) Upon receipt of an application subject to this section in the form prescribed by the Commissioner, the Commissioner shall determine whether the application is complete. The Commissioner shall have the power to request modifications in, and additional information relating to, any application prior to certifying its completeness.

  (b) As soon as the application is deemed substantially complete, the Commissioner may order the applicant to provide notice of the application in the manner and form as he or she may prescribe.

  (c) Any person may submit written comments on the proposed application to the Commissioner. If the Commissioner orders publication or other notice to be given, he or she shall establish a deadline for receipt of written comments on the application that shall be no less than five business days following the completion of publication or other notice. The Commissioner may, but shall not be compelled to, consider written comments filed after the close of the written comment period. All comments shall be maintained in the public files of the department.

  (d) Applications accepted by the Commissioner shall be placed on public file at the office of the department and shall be made available for public inspection or copying, at cost; provided that any information that is exempt from public inspection under 1 V.S.A. chapter 5 shall be removed before public inspection of the file is permitted. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30803. Hearings on applications; decisions; general good standard

  (a) The Commissioner may conduct public hearings on any application subject to this subchapter in his or her discretion.

  (b) After consideration of all relevant matters presented in the application, in any written comments, in any department investigation, and at any hearing, the Commissioner shall issue a decision approving or disapproving the application.

  (c) If the Commissioner’s decision is favorable, a certificate of approval shall issue with the decision. If the Commissioner’s decision is not favorable, the Commissioner shall provide the reasons for the disapproval.

  (d) No credit union shall commence operations; open an office; or effectuate a merger, acquisition, conversion, reorganization, or dissolution; amend its bylaws or organizational documents; or take any other similar action without first securing a certificate of approval.

  (e) The Commissioner shall approve an application if he or she determines that the proposed transaction promotes the general good of the State of Vermont.

  (f) In determining whether the proposed transaction promotes the general good of the State of Vermont, the Commissioner may consider the following factors:

  (1) the character, ability, and overall sufficiency of the management, including directors or organizers of the credit union;

  (2) the adequacy of capital and financial resources of the credit union;

  (3) the competitive abilities and future prospects of the credit union;

  (4) the convenience and needs of the market area or areas to be served;

  (5) the competitive effect of the proposed transaction on the price, availability, and quality of services in the market area or areas to be served;

  (6) the effect on the applicant’s members;

  (7) if an existing credit union, whether the proposed transaction contributes to the financial strength and success of the credit union;

  (8) the fairness and equities involved in any conversion, merger, or acquisition;

  (9) whether the credit union’s proposal conforms to Vermont law; and

  (10) such other aspects of the proposed transaction as the Commissioner deems advisable. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30804. Notification of approval or denial of application

  (a) Within 60 days after the filing of a completed application, the conclusion of any public hearing, and the conclusion of any public comment period, the Commissioner shall notify the applicant of the approval or denial of the application.

  (b) The Commissioner may extend the period to notify the applicant of the approval or denial of the application for an additional 30-day period by providing notice to the applicant within the time period specified in subsection (a) of this section that the Commissioner intends to extend the time period. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 30805. Review of denial of application

  (a) If the application is denied, the applicant may request that the Commissioner reconsider the application by making such request in writing, within 15 days of the denial, responding specifically to the Commissioner’s stated reason or reasons for denial. The Commissioner shall reconsider the application in light of the response stated in the applicant’s request for reconsideration.

  (b) The Commissioner shall notify the applicant of the approval or denial of the applicant’s request for review of denial within 60 days of the filing of the request.

  (c) The applicant may request review by the Superior Court in Washington County upon action brought in the usual form by an aggrieved party within 15 days after written notice of the denial of the request for reconsideration. (Added 2005, No. 16, § 1.)

• Subchapter 009: Taxation

• § 30901. Taxation

  Any credit union organized under this or any other credit union statute and all shares and deposits in the credit union shall be exempt from all taxation imposed by this jurisdiction before or after the enactment of this section or any taxing authority within this jurisdiction, and no law that taxes corporations in any form, or the shares or deposits thereof, or the accumulations thereon, shall apply to any credit union, except that any real property and any tangible personal property owned by any credit union shall be subject to taxation to the same extent as other similar property is taxed. However, this exception shall not permit the imposition of any sales or use taxes on the credit union. The shares of any credit union shall not be subject to transfer taxes, either when issued or when transferred from one member to another. The participation by a credit union in any government programs providing unemployment, Social Security, old age pension, or other benefits shall not be deemed a waiver of the taxation exemption hereby granted. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 322, eff. July 1, 2022.)