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
001
:
GENERAL POWERS
(Cite as: 8 V.S.A. § 14107)
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§ 14107. Investments
(a) A Vermont financial institution may invest its assets prudently in accordance with
the best judgment of its governing body in a manner consistent with this section.
(b) A Vermont financial institution may not acquire more than five percent of the equity
interest of any Vermont financial institution or of a Vermont bank holding company
without the prior approval of the Commissioner.
(c) Notwithstanding any other provision of law to the contrary, a financial institution
may invest its funds, operate a business, manage or deal in property, or take any
other action over whatever period of time may reasonably be necessary to avoid loss
on an investment or loan previously made or an obligation created in good faith.
(d) A Vermont financial institution’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.
(e) A Vermont financial institution shall not acquire a lien on its equity interests as
collateral for any extension of credit or other obligation nor acquire title to such
collateral except to prevent loss upon a loan or investment previously made or an
obligation created in good faith. If a Vermont financial institution acquires such
a lien upon its equity interest or acquires title to such equity interest under the
exception in this subsection, it shall not permit the lien to continue for more than
two years, nor shall it hold title to the equity interest for more than one year,
without the consent of the Commissioner.
(f) Except as otherwise provided in subsection (e) of this section, and subject to chapter
202, subchapter 4 and chapter 203, subchapter 2 of this title, a Vermont financial
institution may repurchase or redeem its own equity interests. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)