The Vermont Statutes Online
Banking and Insurance
2204. Approval of application and issuance of license
(a) Upon the
filing of the application, payment of the required fees, approval of the bond,
and satisfactory proof of liquid assets, the Commissioner shall issue and
deliver a license to the applicant upon findings by the Commissioner as
(1)(A) That the
financial responsibility, experience, character, and general fitness of the
applicant are such as to command the confidence of the community and to warrant
belief that the business will be operated honestly, fairly, and efficiently
within the purposes of this chapter. If the applicant is a partnership or
association, such findings are required with respect to each partner, member,
and control person. If the applicant is a corporation, such findings are
required with respect to each officer, director, and control person.
(B) For purposes
of this subsection, a person has shown that he or she is not financially
responsible when he or she has shown a disregard in the management of his or
her own financial condition. A determination that an individual has not shown
financial responsibility may include:
outstanding judgments, except judgments solely as a result of medical expenses;
outstanding tax liens or other government liens and filings;
Foreclosures within the past three years;
(iv) A pattern
of seriously delinquent accounts within the past three years.
allowing the applicant to engage in business will promote the convenience and
advantage of the community in which the business of the applicant is to be
(3) That the
applicant is licensed to engage in such business in its state of domicile and
is in good standing in its state of domicile with its banking regulator or
equivalent financial industry regulator.
(4) That the
applicant, and each officer, director, and control person of the applicant, has
never had a lender license, mortgage broker license, mortgage loan originator
license, or similar license revoked in any governmental jurisdiction, except
that a subsequent formal vacation of such revocation shall not be deemed a
applicant, and each officer, director, and control person of the applicant has
not been convicted of, or pled guilty or nolo contendere to, a felony in a domestic,
foreign, or military court:
(A) During the
seven-year period preceding the date of the application for licensing and
(B) At any time
preceding such date of application, if such felony involved an act of fraud,
dishonesty, or a breach of trust, or money laundering;
that any pardon or expungement of a conviction shall not be a conviction for
purposes of this subsection.
(6) That the
applicant has satisfied the surety bond and liquid asset requirement of section
2203 of this chapter.
(7) For an
application for a mortgage loan originator license, the applicant has satisfied
the prelicense education requirement of section 2204a of this chapter and the
prelicense testing requirement of section 2204b of this chapter.
(b) If the Commissioner
does not find as set forth in subsection (a) of this section, the Commissioner
shall not issue a license. Within 60 days of filing of the completed
application, the Commissioner shall notify the applicant of the denial, stating
the reason or reasons therefore. If after the allowable period, no request for
reconsideration under subsection 2205(a) of this title is received from the
applicant, the Commissioner shall return to the applicant the bond and the sum
paid by the applicant as a license fee, retaining the investigation fee to
cover the costs of investigating the application.
(c) If the
Commissioner makes findings as set forth in subsection (a) of this section, he
or she shall issue the license within 60 days of filing the completed
application. Except as provided in subsection 2209(c) of this chapter with
respect to a mortgage loan originator license, the license shall be in full
force and effect until surrendered by the licensee, or revocation, suspension,
or refusal to renew by the Commissioner.
(d) This section
does not apply to a lender making only commercial loans. (Amended 1979, No. 173
(Adj. Sess.), § 4, eff. April 30, 1980; 1987, No. 117, § 4; 1995, No. 162 (Adj.
Sess.), § 5, eff. Jan. 1, 1997; 2009, No. 29, § 1; 2009, No. 134 (Adj. Sess.), §
24e; 2011, No. 85 (Adj. Sess.), § 3, eff. April 20, 2012.)