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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
221
:
ORGANIZATION AND MANAGEMENT OF CREDIT UNION
Subchapter
005
:
NET WORTH; RESERVES; DIVIDENDS
§
31502. Regular reserve account
(a) Every credit
union shall accumulate and maintain a regular reserve account which shall be
held to meet losses until the credit union is dissolved, when it may be
distributed among the members. The regular reserve account shall be accumulated
and regulated pursuant to standards established by the Commissioner, as the
same may be amended from time to time.
(b) Any sums
recovered on items previously charged to the regular reserve account shall be
credited to the regular reserve account.
(c) Except as
permitted under subsection 31506(b) of this title, the governing body of a
credit union shall not transfer any part of the regular reserve account to the
undivided earnings account without the prior written approval of the
Commissioner. (Added 2005, No. 16, § 1, eff. July 1, 2005.)