§ 32102. General powers
(a) Subject to applicable law, a Vermont credit union may exercise the following powers:
(1) make contracts;
(2) sue and be sued;
(3) adopt and use a common seal and alter such seal at pleasure;
(4) purchase, hold, and dispose of property necessary or incidental to its operations;
(5) establish, acquire, invest or participate in, or utilize a credit union service organization;
(6) subject to the approval of the Commissioner, contract with another credit union or
credit unions for office or agency services or to provide those services to the customers
of that credit union;
(7) subject to the approval of the Commissioner, purchase the assets of another credit
union or sell all or substantially all of its assets to another credit union;
(8) offer related financial services to its members, including electronic financial services,
safe deposit boxes, negotiable instruments, leasing, and correspondent arrangements
with other financial institutions, and charge a reasonable fee for such services;
(9) hold membership in other credit unions organized under the laws of this State, the
laws of the United States, or the laws of another state or territory of the United
States and in associations and organizations;
(10) make reasonable contributions to any nonprofit civic, charitable, or service organization;
(11) require the payment of an entrance fee or annual membership fee, or both, of any person
admitted to membership, pursuant to resolution of the governing body;
(12) receive savings from its members in the form of shares and honor requests for withdrawals
or transfers of all or any part of member share accounts, in any manner approved by
the governing body;
(13) lend funds to its members;
(14) subject to rules adopted by the Commissioner, sell at a discount any obligations owed
to the credit union;
(15) invest surplus funds, subject to the provisions of section 32104 of this title;
(16) invest in shares of other credit unions and make deposits in other financial institutions,
provided such credit union or financial institution is federally insured;
(17) assess fees and charges to members subject to applicable law, for failure to meet
promptly their obligations to the credit union;
(18) declare and pay dividends on various types of share accounts, pay interest on deposit
accounts held by a community development credit union, and pay interest refunds to
borrowers;
(19) subject to applicable State and federal law, including applicable insurance laws,
act as the agent for any fire, life, accident, health, credit life, disability, or
other insurance company, other than a title insurance company, authorized by the State
of Vermont, by soliciting and selling insurance and collecting premiums on policies
issued by such company and receive for services so rendered such fees or commissions
as may be agreed upon by the credit union and the insurance company for which it may
act as agent; provided, however, that no such credit union shall in any case assume
or guaranty the payment of any premium on insurance policies issued through its agency
by its principal and provided further that the credit union shall not guaranty the
truth of any statement made by an insured in filing his or her application for insurance;
(20) purchase and maintain insurance on behalf of any person who is or was a director,
officer, employee, or agent of the credit union, or who is or was serving at the request
of the credit union as a director, officer, employee, or agent of another corporation,
partnership, joint venture, trust, or other enterprise, against any liability asserted
against such person and incurred by such person in any such capacity or arising out
of such person’s status as such, whether the credit union would have the power to
indemnify such person against such liability;
(21) enter into lease agreements, lease contracts, and lease-purchase agreements with members;
(22) indemnify and limit the personal liability of volunteers;
(23) enter into marketing arrangements and joint ventures to facilitate its members’ voluntary
purchase of goods, insurance, and other services from third parties. A credit union
may be compensated for services so provided;
(24) borrow an aggregate amount not exceeding 20 percent of its assets, and borrow amounts
in excess of 20 percent, but not in excess of 50 percent of its assets, if prior written
approval has been given by the Commissioner;
(25) with the approval of the Commissioner, maintain one or more offices other than the
principal place of business as may be necessary to conduct the affairs of the credit
union;
(26) accept payment for any electric, electric distribution, gas, water, or telephone company
or other utility company operating within this State in receiving money due such company
for utility services furnished by it;
(27) provide loan processing, loan servicing, member check and money order cashing services,
disbursement of share withdrawals and loan proceeds, money orders, internal audits,
automated teller machine services, and other similar services to other Vermont credit
unions, federal credit unions, and out-of-state credit unions; and
(28) exercise other powers and actions as authorized under this part of this title or as
authorized by regulation of the Commissioner.
(b) The expressed powers for a credit union authorized under this section do not preclude
the exercise of additional powers deemed to be incidental to the transaction of a
general credit union business pursuant to this part.
(c) Subject to the limitations of this part and other applicable law, a Vermont credit
union may exercise the powers granted nonprofit corporations under Title 11B. In the
event of any conflict between the provisions of Title 11B and this title, the provisions
of this title govern. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 333, eff. July 1, 2022.)
§ 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.)