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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

221

:
ORGANIZATION AND MANAGEMENT OF CREDIT UNION






Subchapter

001
:
ORGANIZATION AND COMMENCING BUSINESS










 

§

31106. Certificate to commence business; insurance; bond

(a) Upon receipt

of the statement required in subsection 31105(b) of this title, the

Commissioner shall cause an examination to be made to determine if the minimum

share deposits have been credited to the account of the credit union, and that

all requirements of this section and other provisions of law have been met.

(b) Upon

completion of the examination, and if it appears to the Commissioner that the

whole of the required share deposits has been paid in, the Commissioner shall

issue a certificate under seal authorizing the credit union to commence

business, and this certificate shall be filed with the Secretary of State.

(c) The

certificate of authority to commence business shall be conclusive of the facts

stated therein, and it shall be unlawful for any credit union to begin

transacting business until a certificate of authority to commence business has

been granted.

(d) A credit

union shall not commence business until its shares and deposits are insured by

the National Credit Union Administration (NCUA) or its successor agency as

required by section 31601 of this title.

(e) A credit

union shall not commence business until it has acquired such bonds and

insurance as required by section 31602 of this title.

(f) In the case

of a violation of this provision, the officers and directors assenting thereto

shall be personally liable for all debts incurred before the certificate is

issued and filed. (Added 2005, No. 16, § 1, eff. July 1, 2005.)