The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
Subchapter
002
:
ORGANIZATIONAL FINANCE
(Cite as: 8 V.S.A. § 13203)
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§ 13203. Capital notes or debentures as capital reserve
Subject to prior approval of the Commissioner, a financial institution may issue capital
notes or debentures, the proceeds from the sale of which may be used in lieu of capital
deposits to establish part of the capital reserve required in section 13201 of this title, provided that:
(1) such capital notes or debentures are issued pursuant to the organization’s borrowing
powers;
(2) such notes or debentures are subject to conditions governing the repayment of principal
and interest that are comparable to the requirements governing return of initial capital
deposits as set forth in section 13202 of this title; and
(3) repayment of the principal amount of such capital notes or debentures issued pursuant
to this section shall have priority over the return of any capital deposits in the
capital reserve. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)