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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
224
:
MERGER AND ACQUISITION
§
34104. Nonconforming activities; cessation
(a)
Applicability. If, as a result of a merger or conversion pursuant to this
title, the continuing credit union is to be of a different type or of a
different character than any one or all of the participating or converting
institutions, such continuing credit union shall be subject to the conditions
and limitations as set forth in this chapter.
(b) Plan for
termination. The plan of merger or conversion shall set forth the method and
schedule for terminating those activities not permitted by the laws of this
state for the continuing credit union, but which were authorized for any of the
participating or converting institutions.
(c) Effective
date. The plan of merger or conversion shall state that from the effective date
of such action, the continuing credit union shall not engage in any
nonconforming activities, except to the extent necessary to fulfill obligations
existing prior to merger or conversion, pursuant to subsection (d) of this
section.
(d) Compliance
with limitations. If, as a result of such merger or conversion, the continuing
credit union exceeds any lending, investment, or other limitations imposed by
this title, it shall conform to such limitations within such period of time as
shall be established by the Commissioner.
(e) Divestiture.
The Commissioner may, as a condition to such merger or conversion, require a
nonconforming activity to be divested in accordance with such additional
requirements as he or she may deem appropriate under the circumstances. (Added
2005, No. 16, § 1, eff. July 1, 2005.)