The Vermont Statutes Online
Banking and Insurance
ORGANIZATION AND MANAGEMENT OF CREDIT UNION
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.
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.
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
(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.)