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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.)