§34104. Nonconforming activities; cessation

Link to law: http://legislature.vermont.gov/statutes/section/08/224/34104
Published: 2015

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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.)
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