§15202. Establishment of branches in Vermont by financial institutions

Link to law: http://legislature.vermont.gov/statutes/section/08/205/15202
Published: 2015

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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.)
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