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Subchapter 001: ORGANIZATION AND COMMENCING BUSINESS
§ 12101. Application
(a) Application. A corporation, limited liability company, limited partnership, limited liability partnership,
or the organizers of the entity shall file with the Commissioner an application for
permission to conduct business as an investor-owned financial institution. The application
shall contain the following information:
(1) The name by which the financial institution is to be known.
(2) The purpose for which it is to be formed, including whether a certificate of general
good is sought to conduct business as a universal financial institution or special
purpose financial institution.
(3) The city or town within this State where the institution’s principal office is to
be located.
(4) The proposed amount of its initial capital.
(5) The names, addresses, and occupations of the organizers of the institution, together
with a statement as to the character, reputation, and financial responsibility and
competence of such persons.
(6) Documents that set forth the proposed institution’s organizational structure and business
plan, including:
(A) A copy of the organizational documents of the applicant.
(B) The names, addresses, and occupations of the organizers of the institution and the
names, addresses, and occupations of the directors who will be voted on at the initial
meeting, together with a statement as to the character, reputation, and financial
responsibility of each. A list of the names, addresses, and official positions of
the persons who are to be responsible for the conduct of the affairs of the applicant,
including all members of the governing body, any committees, and the executive officers;
a statement as to the character, reputation, financial responsibility, and competence
and experience in banking and business of such persons; and such disclosure and conflict
of interest statements as required.
(C) A financial plan that includes a three-year projection of the initial operating results
anticipated and a description of the proposed method of marketing the plan, and a
statement as to the sources of initial capital as well as any other sources of funding.
(7) The reasons that an institution of the type specified in subdivision (2) of this subsection
is needed in the proposed location.
(8) Copies of any application filed with any other supervisory agency.
(9) Any additional information the Commissioner may require. The Commissioner may waive
any requirements that do not apply.
(b) Publication of notice. After determining that the application required by subsection (a) of this section
is complete, the Commissioner shall advise the organization or the organizers of the
entity to publish or give any notice that will be required by the Commissioner under
section 11702 of this title. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 12102. Issuance of certificate of general good; refusal to issue certificate of general good
(a) Certificate of general good. The Commissioner shall determine whether or not a certificate of general good shall
be granted to organize a financial institution under this chapter and shall make the
decision in accordance with the requirements of chapter 201, subchapter 7 of this
chapter.
(b) Conditions. A grant of a certificate of general good may be made subject to such terms and conditions
as the Commissioner determines necessary. The certificate of general good shall be
submitted to the Secretary of State with the organizational documents that are required
to be filed with the Secretary of State. The conditions may include conditions regarding
the organizational form of the financial institution under this chapter.
(c) Effect of refusal to issue certificate of general good. If the Commissioner refuses to issue a certificate of general good, a new application
may be filed by the applicant after one year from the date of the refusal. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 12103. Requirements to commence business; paid-in minimum capital; examination; certificate
of authority
(a) At the time the certificate of general good is issued, the Commissioner shall issue
an order granting permission to organize that shall set forth the minimum amount of
paid-in capital that the financial institution will be required to have to begin business,
which in no event shall be less than $250,000.00.
(b) The Commissioner may set different minimum paid-in capital requirements for different
types of financial institutions and in determining such amounts may consider such
factors as the population of the area where the proposed financial institution is
to be located, competition among financial institutions in that locale, the projected
volume and type of business to be conducted, the inherent risks in the business to
be conducted, and the need to protect depositors and other creditors of the institution.
(c) All capital contributions shall be in the form of cash, unless otherwise approved
by the Commissioner.
(d) An organization that has received a certificate of general good to conduct business
as a financial institution may not commence business until the Commissioner certifies
in writing that the required minimum capital has actually been paid in and that all
other terms and conditions contained in the certificate of general good have been
satisfied.
(e) When the entire paid-in capital of a financial institution has been received by the
financial institution, a complete list of the investors with the name and post office
address of each and the portion of ownership interest held by each shall be filed
with the Commissioner, who shall cause an examination to be made. If, after the examination,
it appears to the Commissioner that the required capital has been paid in, the Commissioner
shall issue a certificate under seal authorizing the financial institution to commence
business, and this certificate shall be filed with the Secretary of State. A financial
institution shall not commence business until that certificate is issued and filed.
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 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 288, eff. July 1, 2022.)
§ 12104. Failure to commence business
(a) If a financial institution authorized to commence business under this chapter does
not commence business within two years from the filing of its organizational documents
in the Office of the Secretary of State, its right to do business shall lapse.
(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 institution setting forth the reasons for
the extension filed before the expiration of the time period established in subsection
(a) of this section. If an extension is granted by the Commissioner, the Commissioner
shall notify the Secretary of State. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 12105. Continuance of organization
The organizational documents shall provide for continuance of a financial institution
despite the death, dissolution, departure, or incapacity of any investor. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
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Subchapter 006: SPECIAL PURPOSE FINANCIAL INSTITUTIONS
§ 12601. Certain special purpose financial institutions authorized
(a) In addition to universal financial institutions authorized under subchapters 1-5 of
this chapter and under chapter 203 of this title, special purpose financial institutions
may be established in this State, subject to the conditions and limitations imposed
under this subchapter.
(b) Any person who, directly or indirectly, controls a special purpose financial institution
established under this subchapter shall be subject to the supervision of the Commissioner,
unless that person is a bank holding company regulated by the Federal Reserve Board
or savings and loan holding company regulated by the director of the Office of Thrift
Supervision. In exercising the supervisory powers under this subchapter, the Commissioner
may require such examination and reports, including copies of reports filed with federal
regulatory agencies, of the special purpose financial institution and any person that
controls it as the Commissioner deems necessary to protect the interests of depositors,
borrowers, or other parties in interest.
(c) Any material change in a business plan by a special purpose financial institution
authorized to do business under this subchapter shall be submitted to the Commissioner
for prior approval, unless the provisions of this title require the financial institution
to file an application with the Commissioner. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
§ 12602. Nondepository trust companies
(a) A nondepository trust company has all the powers, duties, and obligations of a financial
institution under this title, except as provided in this section. In the exercise
of its powers and the conduct of its business, the nondepository trust company shall
be subject to all the same fiduciary duties and obligations as a financial institution
operating a trust department under chapter 204, subchapter 4 of this title.
(b) A nondepository trust company shall not have the power to solicit, receive, or accept
money or its equivalent on deposit as a regular business within the meaning of subdivision 11101(11) of this title; shall not be required to obtain federal deposit insurance; shall not have the power
to lend money, except in transactions reasonably related to and deriving from its
service as fiduciary or its conduct of trust business; and shall not conduct any other
business except that which is incidental to its trust business and which is otherwise
consistent with the exercise of its fiduciary duties.
(c) No nondepository trust company, other than a national trust company authorized to
engage in a trust business in this State, shall engage in a trust business in this
State without first obtaining a certificate of authority from the Commissioner pursuant
to this section and sections 11703, 12103, and 14403 of this title.
(d) Notwithstanding section 15101 of this title, without the prior approval of the Commissioner, a nondepository trust company that
is authorized to do business in this State may open and occupy a trust office at any
one or more locations in this State at which its financial institution holding company
parent or any affiliate financial institution has an office, whether a main office
or a branch office.
(e) Any other trust office of a nondepository trust company organized as a Vermont financial
institution shall be established in this State only with the prior approval of the
Commissioner as provided in subsection 11701(c) of this title.
(f) The establishment of trust offices by a nondepository trust company organized as a
national trust company shall be governed by applicable federal law.
(g) The organizational documents of a nondepository trust company organized as a Vermont
financial institution that are filed with the Secretary of State shall contain the
following statement: “This organization is subject to the Vermont law on nondepository
trust companies, section 12602 of this title, and does not have the power to solicit, receive, or accept money or its equivalent
on deposit or to lend money except for lending reasonably related to and deriving
from its service as fiduciary or its conduct of trust business.” This statement in
the organizational documents of a nondepository trust company may not be amended.
(h) All of the outstanding equity interests of a nondepository trust company shall be
owned directly, or indirectly through one or more subsidiaries, by a financial institution
holding company.
(i) A nondepository trust company organized as a Vermont financial institution shall maintain
minimum capital in accordance with this chapter and section 14104 of this title, except the Commissioner may by order or rule apply standards for the minimum capital
required for a nondepository trust company that are different from those requirements
for a universal financial institution organized under this title, based on the nature
of the business.
(j) Funds received or held by a nondepository trust company organized as a Vermont financial
institution while awaiting investment or distribution shall not be used by the nondepository
trust company or any affiliate financial institution in the conduct of its business
or deposited in such financial institution, except to the same extent, and subject
to the same conditions and limitations, as would be otherwise permitted under this
title if the nondepository trust company and affiliated financial institution were
one and the same corporate entity. The account shall be held either in the name of
the trust to which the cash belongs or in the name of the nondepository trust company
and shall be composed entirely of cash belonging to trust accounts, the respective
contributions of which are reflected in the books and records of the nondepository
trust company.
(k) A nondepository trust company organized as a Vermont financial institution shall include
as a part of its name the word “trust” unless otherwise approved by the Commissioner
for good cause shown.
(l) A nondepository trust company organized as a Vermont financial institution shall be
subject to regular examination and supervision by the Commissioner to the same extent
as any other financial institution chartered under Vermont law.
(m) A nondepository trust company organized as a Vermont financial institution may convert
to any other type of investor-owned financial institution pursuant to chapter 206
of this title.
(n)(1) At any time or times following the grant to a nondepository trust company of permission
to engage in the trust business by the Commissioner, or in the case of a national
trust company by its federal supervisory agency, the nondepository trust company may
file a petition in the Probate Division of the Superior Court of the Probate District
in which its main office is located requesting that it be substituted, except as may
be specifically excluded in such petition, in every fiduciary capacity for any one
or more of its affiliate financial institutions specified in the petition. The petition
may be made ex parte and need not list the fiduciary capacities in which substitution
is made. A copy of the petition shall be furnished to the Commissioner prior to filing
with the Probate Division of the Superior Court and the Commissioner shall have standing
to appear and object to the petition. Upon a finding that (A) the nondepository trust
company has been granted permission to engage in the trust business by the Commissioner,
or the federal supervisory agency if the nondepository trust company is a national
trust company, and (B) each of the affiliate financial institutions for which the
nondepository trust company seeks to be substituted as fiduciary has complied with
the notification requirements in subdivision (2) of this subsection, the court shall
enter an order substituting the nondepository trust company in every fiduciary capacity
for each of its specified affiliate financial institutions, except as otherwise specified
in the nondepository trust company’s petition. If the court determines that the Commissioner’s
objection has merit, the court shall issue an appropriate order to address the Commissioner’s
objection. The petition made pursuant to this section shall be considered in a summary
fashion by the court, and the court shall act on the petition within 30 days of filing.
Upon entry of the court’s substitution order, the nondepository trust company shall,
without further act, be deemed substituted by operation of law in every such fiduciary
capacity, except as may be specifically excluded in such petition. The substitution
shall be evidenced by filing a copy of the order with the Clerk of the Vermont Probate
Division of the Superior Court in each Probate District in which the affiliate financial
institutions served in a fiduciary capacity prior to the entry of the order. The order
shall be accompanied by written notification to the court of each fiduciary appointment
previously made by the court that is affected by the substitution order and evidence
of compliance with subdivision (5) of this subsection. The order of substitution shall
be indexed in the records of the courts in the manner in which substitutions of fiduciaries
are indexed.
(2) At least 30 days before the filing of the petition referred to in subdivision (1)
of this subsection, but after regulatory approval under subsection (c) of this section
has been granted, each of the affiliate financial institutions for which the nondepository
trust company seeks to be substituted shall mail written notice of the proposed substitution
to the principals of each trust account affected. The form of notice required by this
subdivision shall be approved by the Commissioner and shall include a statement that
the nondepository trust company is affiliated with its affiliate financial institutions,
but is not a part of them, and shall include the name, mailing address, and telephone
number of one or more officers, employees, or agents of the affiliate financial institution
available during regular business hours to answer customer questions regarding the
proposed substitution. The affiliate financial institution shall furnish an affidavit
of the mailing of the notice to the Probate Division of the Superior Court in conjunction
with the filing of the nondepository trust company’s petition referred to in subdivision
(1) of this subsection, and the affidavit shall constitute the affiliate financial
institution’s compliance with this subdivision. Following the mailing of the notice
and prior to the effective date of the substitution order, each of the affiliate financial
institutions shall furnish a copy of the notice to each prospective trust customer
of the financial institution before the customer and the financial institution enter
into a trust account relationship.
(3) Within 30 days after the entry of the substitution order referred to in subdivision
(1) of this subsection, the nondepository trust company shall mail written notice
of the substitution to the principals of each trust account affected. The notice shall
specify that the nondepository trust company is affiliated with its affiliate financial
institutions, but is not a part of them, and shall include the name, mailing address,
and telephone number of one or more officers or employees of the nondepository trust
company available during regular business hours to answer customer questions regarding
the substitution.
(4) Each designation in a will, trust, or other instrument executed before or after the
entry of an order of substitution, naming an affiliate financial institution as fiduciary,
shall be deemed by operation of law to be a designation of the nondepository trust
company, substituted pursuant to this section, without further act or amendment of
the will, trust, or other instrument, unless the will, trust, or other instrument
is executed after the date of entry of the order of substitution and specifically
negates application of this section.
(5) If any affiliate financial institution for which the nondepository trust company has
been substituted pursuant to this section has given bond in any fiduciary capacity,
the nondepository trust company shall be required to furnish to the court or authority
making the appointment a substitute bond in like amount and terms before the affiliate
financial institution shall be released from liability on its bond.
(6) Any affiliate financial institution for which the nondepository trust company has
been substituted pursuant to this section shall account jointly with the nondepository
trust company for the accounting period during which the effective date of the substitution
occurs. Upon substitution pursuant to this section, the affiliate financial institution
shall deliver to the nondepository trust company all assets addressed in the substitution
order held by the affiliate financial institution as fiduciary and upon the substitution
all the assets shall become the property of the nondepository trust company as fiduciary
without the necessity of any instrument of transfer or conveyance.
(7) Upon substitution of the nondepository trust company pursuant to subdivision (1) of
this subsection, the nondepository trust company shall pay fair consideration to each
affiliate financial institution for which it has been substituted as fiduciary for
the trust business it has acquired from the affiliate as a result of the substitution.
(o) To the extent not inconsistent with this section or with the limited scope of the
banking powers of a nondepository trust company as contemplated in subsection (b)
of this section, a nondepository trust company organized as a Vermont financial institution
shall be subject to the laws of this State generally applicable to investor-owned
financial institutions organized pursuant to chapter 202 of this title; provided,
however, that the provisions of this chapter governing substitution of the nondepository
trust company as fiduciary shall be exclusive and chapters 206, 207, and 208 of this
title shall not apply to the substitution.
(p) A depository institution organized either as a Vermont financial institution or a
national financial institution if authorized by its supervisory agency to exercise
trust powers may be substituted as a fiduciary for any of its affiliate financial
institutions under the same procedures, and the substitution shall be subject to the
same conditions specified in this section, other than the prohibition against deposit-taking
and the provisions of subsection (k) of this section, with respect to the substitution
as fiduciary of a nondepository trust company for any of its affiliate financial institutions.
The substitution procedures shall be exclusive and chapters 206, 207, and 208 of this
title shall not apply to the substitution.
(q) Notwithstanding subsection 12201(a) of this title, the governing body of a nondepository trust company shall meet at least four times
a year, including once quarterly. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2001, No. 73 (Adj. Sess.), § 4, eff. Feb. 2, 2002; 2009, No. 154 (Adj. Sess.), § 238a, eff. Feb. 1, 2011; 2017, No. 134 (Adj. Sess.), § 8.)
§ 12603. Merchant banks
(a) A merchant bank is a financial institution organized under the provisions of this
title whose activities are generally limited to lending and investing. Deposit activity
is prohibited. Unless otherwise indicated in this chapter, a merchant bank has all
the powers, duties, and obligations of a financial institution under this title. As
one of the purposes of merchant banks is to provide needed capital or investments
to businesses that may be impermissible or imprudent for depository financial institutions,
its lending and investment activities are less restricted. Except as provided in this
section, a merchant bank has all the powers of and is entitled to engage in the business
of a financial institution, including powers with respect to investments, loans, and
transactions.
(b) A merchant bank may not solicit, receive, or accept money or its equivalent on deposit
as a regular business within the meaning of subdivision 11101(11) of this title or engage in deposit-like activities as determined by the Commissioner. A merchant
bank may deposit cash, whether constituting principal or income, in any financial
institution, whether within or outside this State, if the account is held either in
the name of the customer to which the cash belongs or in the name of the merchant
bank and is composed entirely of cash belonging to the customer, the respective contributions
of which are reflected in the books and records of the merchant bank.
(c) A merchant bank may issue drafts drawn on itself in the form of treasurer’s or cashier’s
checks.
(d) No merchant bank shall engage in business as a merchant bank in this State without
first obtaining a certificate of authority from the Commissioner pursuant to this
section and sections 11703 and 12103 of this title.
(e) The organizational documents of a merchant bank that are filed with the Secretary
of State shall contain the following statement: “This organization is subject to the
Vermont law on merchant banks, 8 V.S.A. § 12603, and does not have the power to solicit, receive, or accept money or its equivalent
on deposit.” This statement in the organizational documents of a merchant bank may
not be amended.
(f) The minimum amount of initial capital for a merchant bank is $1,000,000.00, all of
which shall be common stock or equity interest in the merchant bank. A merchant bank
may use qualified subordinated debt or senior debt as part of its capital structure
above $1,000,000.00, provided that the amount of subordinated debt or senior debt
used as capital above $1,000,000.00 is not greater than the amount of common stock
or equity interest used as capital above $1,000,000.00. The Commissioner, in his or
her discretion, may increase the minimum capital required for a merchant bank.
(g) A merchant bank shall maintain minimum capital in accordance with section 14104 of this title. The Commissioner may establish different standards for merchant banks than for other
financial institutions organized under this title. The minimum capital standards for
a merchant bank may not be less than a level equal to 150 percent of the tier 1 risk-based
capital and 150 percent of total risk-based capital established from time to time
by the Board of Governors of the Federal Reserve System for a well-capitalized bank.
(h) A merchant bank may convert to any other type of investor-owned financial institution
pursuant to chapter 206 of this title.
(i) Notwithstanding section 14103 of this title, a merchant bank may use as a part of its name the word or words “bank,” “banker,”
or “banking,” or the plural of or any abbreviations of those words.
(j) At least 30 days prior to the establishment of any office for the transaction of its
business, a merchant bank shall notify the Commissioner.
(k) The following provisions of this title are inapplicable to merchant banks: sections
12201 and 14110; subsection 14301(d); chapters 203 and 205; and chapter 204, subchapter
2.
(l) Prior to making a loan, the terms of any loans by a merchant bank to or investments
by a merchant bank shall be disclosed to the governing body of the merchant bank when
the loan is to any of the following:
(1) a person who owns 25 percent or more of the merchant bank’s common stock or similar
equity capital;
(2) a member of the governing body of the merchant bank;
(3) an executive officer or manager of the merchant bank; or
(4) a company, 25 percent of the voting shares or other similar voting equity of which
is owned by a person or entity listed in subdivisions (1) through (3) of this subsection.
(m) Any acquisition or change in control of 10 percent or more of the common stock or
equity interests in a merchant bank shall be subject to the prior approval by the
Commissioner. The acquiring person shall file an application with the Commissioner
for approval. The application shall be subject to the provisions of chapter 201, subchapter
7 of this title.
(n) The Commissioner shall examine the merchant bank and any person who controls it to
the extent necessary to determine the soundness and viability of the merchant bank
in the same manner as required by chapter 201, subchapter 5 of this title.
(o) A merchant bank shall include on all its advertising a prominent disclosure that deposits
are not accepted by a merchant bank.
(p) For purposes of this section, “control” means that a person:
(1) directly, indirectly, or acting through another person owns, controls, or has power
to vote 10 percent or more of any class of equity interest of the merchant bank;
(2) controls in any manner the election of a majority of the directors of the merchant
bank; or
(3) directly or indirectly exercises a controlling influence over the management or policies
of the merchant bank.
(q) A merchant bank formed and authorized under this chapter shall:
(1) maintain its principal place of business in this State;
(2) appoint a registered agent to accept service of process and to otherwise act on its
behalf in this State, provided that whenever such registered agent cannot with reasonable
diligence be found at the Vermont registered office of the merchant bank, the Secretary
of State shall be an agent of such merchant bank upon whom any process, notice, or
demand may be served;
(3) hold at least one meeting of its governing body in this State each year; and
(4) have at least one Vermont resident as a member of its governing body. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2011, No. 21, § 11a; 2011, No. 78 (Adj. Sess.), § 12, eff. April 2, 2012; 2021, No. 105 (Adj. Sess.), § 290, eff. July 1, 2022.)
§ 12604. Uninsured banks
(a) An uninsured bank is a financial institution that only accepts deposits for which
insurance of deposits by the FDIC is not required. For purposes of this section, uninsured
banks may accept deposits from a depositor that, when added to the deposits already
held for the depositor, if any, exceed the maximum insured amount then permitted to
be insured by the Federal Deposit Insurance Corporation for insured deposits. An uninsured
bank may be organized pursuant to this section and subchapters 1 through 5 of this
chapter. Unless otherwise indicated in this chapter, an uninsured bank has all the
powers, rights, duties, and obligations as a financial institution under this title.
An uninsured bank is not a nondepository trust company nor is it a merchant bank.
(b) No uninsured bank shall engage in business as an uninsured bank in this State without
first obtaining a certificate of authority from the Commissioner pursuant to sections
11703 and 12103 of this title and this section.
(c) The organizational documents of an uninsured bank that are filed with the Secretary
of State shall contain the following statement: “This organization is subject to the
Vermont law on uninsured banks, 8 V.S.A. § 12604, and does not have the power to solicit, receive, or accept retail deposits.” This
statement in the organizational documents of an uninsured bank may not be amended.
(d) An uninsured bank shall maintain capital in accordance with section 14104 of this title, except that the Commissioner may establish different capital requirements for uninsured
banks from those required for insured financial institutions.
(e) An uninsured bank may convert to any other type of investor-owned financial institution
pursuant to chapter 206 of this title.
(f) The Commissioner may establish by rule or order reserve requirements for uninsured
banks.
(g) An uninsured bank’s lending limit is governed by subsection 14301(d) of this title, except that loans or extensions of credit to a person are limited to 15 percent
of total capital.
(h) An uninsured bank shall display conspicuously at each window or place where deposits
are usually accepted a sign stating that deposits are not insured by the FDIC.
(i) An uninsured bank shall either include in boldface conspicuous type on each signature
card, or instrument evidencing a deposit the following statement: “This deposit is
not insured by the FDIC” or require each depositor to execute a statement that acknowledges
that the initial deposit and all future deposits at the bank are not insured by the
FDIC. The bank shall retain this acknowledgment as long as the depositor maintains
any deposit with the bank.
(j) An uninsured bank shall include on all its deposit-related advertising a prominent
disclosure that deposits are not insured by the FDIC.
(k) An uninsured bank formed and authorized under this chapter shall:
(1) maintain its principal place of business in this State;
(2) appoint a registered agent to accept service of process and to otherwise act on its
behalf in this State, provided that whenever such registered agent cannot with reasonable
diligence be found at the Vermont registered office of the uninsured bank, the Secretary
of State shall be an agent of such uninsured bank upon whom any process, notice, or
demand may be served;
(3) hold at least one meeting of its governing body in this State each year; and
(4) have at least one Vermont resident as a member of its governing body. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2011, No. 78 (Adj. Sess.), § 13, eff. April 2, 2012.)