§ 11. Department
(a) General. The Department of Financial Regulation created by 3 V.S.A. § 212 shall have jurisdiction over and shall supervise:
(1) Financial institutions, credit unions, licensed lenders, mortgage brokers, insurance
companies, insurance agents, broker-dealers, investment advisors, and other similar
persons subject to the provisions of this title and 9 V.S.A. chapters 59, 61, and 150.
(2) The administration of health care as provided in 18 V.S.A. chapter 221.
(b) Conflicts of interest.
(1) Neither the Commissioner nor any employee of the Department shall, during his or her
term of office or while employed by the Department, be an officer, director, organizer,
employee of, or attorney for any institution subject to supervision or regulation
by the Department.
(2) The Commissioner and employees of the Department shall not, during their terms of
office, receive directly or indirectly any payment or gratuity from any institution
subject to supervision or regulation by the Department or be engaged in the negotiation
of loans for others with any such institution. The prohibitions contained in this
subdivision shall not be construed as prohibiting a person from being a depositor,
equity interest owner, or member in any financial institution or credit union or an
insurance policyholder or equity interest owner on the same terms as are available
to the public generally.
(3) If the Commissioner, or any employee of the Department or the spouse of any of them
or the son or daughter of any of them residing at their respective homes obtains a
loan from or holds an equity interest in any financial institution or credit union
subject to supervision or regulation by the Department, the fact of the loan or of
the holding, together with the appropriate terms and conditions, shall be disclosed
immediately to the Commissioner in writing by the person obtaining the loan or holding.
(4) A record of the indebtedness or holding described in subdivision (3) of this subsection
shall be kept on file in the Department and shall be open to inspection by the public.
(5) The Commissioner shall investigate the loan or equity interest to ensure that no preferential
treatment has been given the Department employee in the process of granting the loan
or issuing the interest and that the loan or interest will not compromise the employee’s
effectiveness in carrying out his or her departmental duties. Where the loan has been
obtained by or where the interest is held by the Commissioner, the investigation shall
be conducted by the State Treasurer.
(c) Retention of documents. The Commissioner shall keep on file for a reasonable period of time such instruments,
papers, and documents required by law to be filed with the Commissioner. (Added 1999, No. 153 (Adj. Sess.), § 1, eff. Jan. 1, 2001; amended 2007, No. 49, § 18, eff. July 1, 2006; 2011, No. 78 (Adj. Sess.), §§ 2, 3, eff. April 2, 2012; 2013, No. 79, § 45.)