The Vermont Statutes Online
The Vermont Statutes Online have been updated to include the actions of the 2023 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.
Title 8 : Banking and Insurance
Chapter 226 : Suspension, Liquidation, Insolvency, Conservation, Involuntary Merger, and Directors and Managing Officers of a Troubled Credit Union
(Cite as: 8 V.S.A. § 36103)-
§ 36103. Conservatorship
(a) The Commissioner may, ex parte without notice, appoint himself or herself or an insuring organization or any other person as conservator and immediately take possession and control of the business and assets of any credit union in any case in which:
(1) The Commissioner determines that such action is necessary to conserve the assets of any credit union or to protect the interests of the members of such credit union.
(2) A credit union, by a resolution of its governing body, consents to such an action by the Commissioner.
(3) The Attorney General notifies the Commissioner in writing that a credit union has been found guilty of a criminal offense.
(4) There is a willful violation of a cease and desist order that has become final.
(5) There is concealment of books, papers, records, or assets of the credit union or refusal to submit books, papers, records, or affairs of the credit union for inspection to any examiner or to any lawful agent of the Commissioner.
(6) The credit union is significantly undercapitalized and has no reasonable prospect of becoming adequately capitalized.
(7) The credit union is critically undercapitalized.
(b) Not later than 14 days after the date on which the Commissioner takes possession and control of the business and assets of a credit union pursuant to subsection (a) of this section, such credit union may apply to the Superior Court of Washington County for an order requiring the Commissioner to show cause why the Commissioner should not be enjoined from continuing such possession and control. Except as provided in this subsection, no court may take any action, except at the request of the Commissioner by regulation or order, to restrain or affect the exercise of powers or functions of the Commissioner as conservator.
(c) Except as provided in subsection (b) of this section, the Commissioner may maintain possession and control of the business and assets of such credit union and may operate such credit union until such time:
(1) as the Commissioner shall permit such credit union to continue business subject to such terms and conditions as may be imposed by the Commissioner; or
(2) as such credit union is liquidated in accordance with the provisions of section 36101 of this title.
(d) The Commissioner may appoint such agents as he or she considers necessary in order to assist the Commissioner in carrying out his or her duties as a conservator under this subsection.
(e) All expenses incurred by the Commissioner in exercising his or her authority under this subsection with respect to any credit union shall be paid out of the assets of such credit union.
(f) The conservator shall have all the powers of the members, the directors, the officers, and the committees of the credit union and shall be authorized to operate the credit union in its own name or to conserve its assets in the manner and to the extent authorized by the Commissioner.
(g) The authority granted by this subsection is in addition to all other authority granted to the Commissioner under this title. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2017, No. 11, § 8.)
