The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 208 : Effect of Merger, Share Exchange, Consolidation, Conversion, or Acquisition; Nonconforming Activities

Subchapter 002 : NONCONFORMING ACTIVITIES; CESSATION

• § 18201. Nonconforming activities; cessation

  (a) Applicability. If, as a result of a merger, consolidation, conversion, or acquisition pursuant to this title, the resulting institution is to be of a different type or of a different character than any one or all of the participating or converting institutions, such resulting institution shall be subject to the conditions and limitations as set forth in this subchapter.

  (b) Plan for termination. The plan of merger, consolidation, conversion, or acquisition shall set forth the method and schedule for terminating those activities not permitted by the laws of this State for the resulting institution, but that were authorized for any of the participating or converting institutions.

  (c) Effective date. The plan of merger, consolidation, conversion, or acquisition shall state that from the effective date of such action, the resulting institution shall not engage in any nonconforming activities, except to the extent necessary to fulfill obligations existing prior to merger, consolidation, conversion, or acquisition, pursuant to subsection (d) of this section.

  (d) Compliance with limitations. If, as a result of such merger, consolidation, conversion, or acquisition, the resulting institution exceeds any lending, investment, or other limitations imposed by this title, it shall conform to such limitations within such period of time as shall be established by the Commissioner.

  (e) Divestiture. The Commissioner may, as a condition to such merger, consolidation, conversion, or acquisition, require a nonconforming activity to be divested in accordance with such additional requirements as he or she may deem appropriate under the circumstances. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)