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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
205
:
BRANCHES
Subchapter
002
:
INTERSTATE BRANCHING AND ACTIVITIES
§
15202. Establishment of branches in Vermont by financial institutions
(a) A state
financial institution, foreign bank, or national bank may establish a branch in
this State pursuant to this section and in accordance with applicable state and
federal financial institution laws.
(b) The
establishment of a branch in this State under this section shall be
accomplished by:
(1) a merger, or
consolidation with, or the purchase of all or substantially all of the assets
of, a financial institution or acquisition of a branch located in this State;
or
(2)
establishment of a branch; provided, however, that the law of the home state of
any state financial institution or national financial institution proposing to
establish one or more de novo branches in this State must expressly authorize,
under conditions no more restrictive than those imposed by the laws of this
State as determined by the Commissioner, the financial institution whose home
state is this State to engage in interstate branch establishment of de novo
branches in that state. A financial institution which is not a Vermont
financial institution and is establishing a branch in this State shall file a
copy of the branch application, with any amendments thereto, with the
Commissioner at the time the application is filed with any supervisory agency.
(c) A merger or
consolidation pursuant to this section involving a Vermont financial
institution shall be in accordance with and subject to the provisions of
chapter 207 of this title, except that the application requirement shall be
treated as a notice requirement and the Commissioner may file an objection with
the applicable supervisory agency with jurisdiction over the transaction if the
transaction fails to comply with law. Approval of the Commissioner under chapter
207 of this title shall not be required.
(d) Any merger,
consolidation, or acquisition pursuant to this section shall be subject to the
provisions of section 14108 of this title.
(e) A state
financial institution that establishes a branch in this State shall comply with
the provisions of 11A V.S.A. chapter 15, 11 V.S.A. chapter 21, subchapter 10,
except that 11A V.S.A. § 15.06 and 11 V.S.A. § 3136 shall not apply to any
financial institution. Notwithstanding section 14103 of this title, a branch in
this State of a state financial institution may engage in the activities
permitted of a financial institution organized under the laws of this State,
and may use the words "bank," "banking association," or
"trust company" when engaged in such activities. The organizational
name of such financial institution shall not be deceptively similar to any name
in use by a person authorized to do business in this State.
(f) A branch of
a state financial institution located in this State shall comply with the laws
of this State, including laws regarding community reinvestment, consumer
protection, fair lending, and the establishment of intrastate branches, to the
same extent as such laws apply to a branch in this State of a Vermont financial
institution. A branch in this State of a state financial institution may
conduct any activity that is permissible for a branch in this State of a
Vermont financial institution, but may not conduct any activity that is not
permissible for a branch in this State of a Vermont financial institution. If
Vermont law requires a Vermont financial institution or any branch of such
financial institution to obtain the Commissioner's approval to engage in an
activity, then a branch of a state financial institution shall obtain the
Commissioner's approval in the same manner as a Vermont financial institution.
(g) A branch of
a national financial institution located in this State shall comply with the
laws of this State, including laws regarding community reinvestment, consumer
protection, fair lending, and establishment of intrastate branches, to the same
extent as such laws apply to a national financial institution whose principal
place of business is in this State.
(h) A national
or state financial institution that maintains a branch in this State pursuant
to this section may establish and operate one or more remote service units in
this State, without the approval of the Commissioner. Any remote service unit
established pursuant to this subsection shall be subject to the provisions of
section 10302 of this title. Nothing in this section shall be deemed to
authorize any other person or entity to establish or operate any remote service
unit in this State that accepts deposits or that transfers funds between
accounts. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)