The Vermont Statutes Online

Title 8: Banking and Insurance

Chapter 223: Offices, Out-of-State Offices, and Offices of State Credit Unions

• § 33101. Relocation of main office

  (a) With the approval of the Commissioner, a Vermont credit union may relocate its main office anywhere within the State to serve effectively its members.

  (b) The Commissioner, before granting an approval under subsection (a) of this section, shall consider:

  (1) the field of membership to be served by the proposed relocation of the main office;

  (2) the adequacy of the current main office;

  (3) the economic need for and cost of the proposed relocation; and

  (4) the convenience and necessity to the field of membership of the proposed relocation. (Added 2005, No. 16, § 1, eff. July 1, 2005.)

• § 33102. In-State and out-of-State offices

  (a) A Vermont credit union shall not establish an office in this State or outside this State without the prior approval of the Commissioner in accordance with subsection 30801(b) of this title.

  (b) Prior to approving the credit union’s application to establish an office in this State or outside this State, the Commissioner must find that:

  (1) establishment of the proposed office is consistent with the safety and soundness of the credit union;

  (2) establishment of the proposed office is consistent with the credit union’s field of membership;

  (3) the credit union has a record of compliance with the requirements of applicable State and federal law; and

  (4) in the case of an out-of-State office, the laws of such other state authorize the establishment of such office. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 339, eff. July 1, 2022.)

• § 33103. Offices of state-chartered credit unions

  (a) A state credit union may, with the prior written approval of the Commissioner, establish one or more offices in this State, provided the laws of its home state authorizes under conditions no more restrictive than those imposed by the laws of this State, as determined by the Commissioner, a Vermont credit union to establish an office in that state. Prior to approving the state credit union’s application to establish an office in this State, the Commissioner must find that such state credit union:

  (1) is financially solvent;

  (2) maintains bonds and share insurance as required under chapter 221, subchapter 6 of this title;

  (3) is effectively examined and supervised by an official of the state in which it is chartered; and

  (4) is in compliance with the requirements set forth in subsection 33102(b) of this title.

  (b) The Commissioner may examine and supervise the Vermont offices of any state credit union and may enter into agreements with other state credit union regulators concerning such examinations or supervision.

  (c) To the extent federal law does not preempt the same, no state credit union may conduct business in this State unless it:

  (1) charges interest in compliance with the provisions of 9 V.S.A. chapter 4 when making loans in this State;

  (2) complies with the consumer protection statutes and rules applicable to Vermont credit unions;

  (3) agrees to furnish the Commissioner with a copy of the examination report conducted by its regulatory agency or to submit to an examination by the commissioner; and

  (4) designates and maintains an agent for the service of process in this State.

  (d) The Commissioner may, after giving notice and an opportunity to be heard to any state credit union, revoke or suspend the approval given to such state credit union to establish an office in this State for any reason that would be sufficient grounds to deny an application to establish an office in this State.

  (e) The Commissioner may revoke the approval of a state credit union conducting business in this State if the Commissioner finds that:

  (1) The state credit union no longer meets the requirements of this section.

  (2) The state credit union has violated the laws of this State or lawful rules or orders issued by the Commissioner.

  (3) The state credit union has engaged in a pattern of unsafe or unsound credit union practices.

  (4) Continued operation by the state credit union is likely to have a substantially adverse impact on the financial, economic, or other interests of residents of this State.

  (5) The state credit union is prohibited from operating in its home state. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 340, eff. July 1, 2022.)

• § 33104. Supervisory agreements; costs of examinations

  (a) In implementing this chapter, the Commissioner may cooperate with credit union regulators in other states or jurisdictions and may share with the regulators the information received by the Commissioner to the extent necessary to supervise and regulate the credit union.

  (b) The Commissioner may enter into supervisory agreements with a state credit union and its regulators to prescribe the applicable laws governing the powers and authorities of Vermont offices of the state credit union.

  (c) The agreements may address, but are not limited to, corporate governance and operational matters. The agreements may resolve any conflict of laws and specify the manner in which the examination, supervision, and application processes must be coordinated with the regulators.

  (d) The Commissioner may adopt rules for the periodic examination and investigation of the affairs of a state credit union operating in this State. The costs of examination and supervision must be fully borne by the state credit union. (Added 2005, No. 16, § 1, eff. July 1, 2005.)