The Vermont Statutes Online

Title 8 : Banking and Insurance

Chapter 222 : Powers

Subchapter 007 : Credit Union Service Organizations (Cuso)

• § 32705. Investing in, lending to, or joining an existing CUSO

  (a) Subject to the limitations of section 32704 of this title, a credit union may invest its funds in, join, or lend to an existing CUSO. The credit union shall file with the Commissioner prior written notice of its intention to make such investment in or loan to an existing CUSO.

  (b) Prior to investing in or lending to an existing CUSO, a credit union shall:

  (1) obtain a written agreement that the CUSO will:

  (A) account for all transactions in accordance with generally accepted accounting principles;

  (B) prepare quarterly financial statements and obtain an annual opinion audit by a licensed certified public accountant on its financial statements in accordance with generally accepted auditing standards;

  (C) provide the Commissioner with complete access to all books and records of the CUSO and with the ability to review CUSO internal controls, as the Commissioner deems necessary; and

  (D) pay the actual cost of any examination conducted by the Commissioner; and

  (2) obtain a written legal opinion that the CUSO is established as a corporation or a limited liability company and that the potential exposure of the credit union is limited to no more than the loss of funds invested in or lent to the CUSO. (Added 2005, No. 16, § 1, eff. July 1, 2005.)