§14107. Investments

Link to law: http://legislature.vermont.gov/statutes/section/08/204/14107
Published: 2015

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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

204

:
POWERS OF FINANCIAL INSTITUTIONS






Subchapter

001
:
GENERAL POWERS










 

§

14107. Investments

(a) A Vermont

financial institution may invest its assets prudently in accordance with the

best judgment of its governing body in a manner consistent with this section.

(b) A Vermont

financial institution may not acquire more than five percent of the equity

interest of any Vermont financial institution or of a Vermont bank holding

company without the prior approval of the Commissioner.

(c)

Notwithstanding any other provision of law to the contrary, a financial

institution may invest its funds, operate a business, manage or deal in

property, or take any other action over whatever period of time may reasonably

be necessary to avoid loss on an investment or loan previously made or an

obligation created in good faith.

(d) A Vermont

financial institution's governing body shall establish a written investment

policy, which it shall review and ratify at least annually, that addresses, at

a minimum, the following:

(1) investment

quality parameters;

(2) investment

mix and diversification;

(3) investment

maturities; and

(4) delegation

of authority to officers and committees responsible for administering the

portfolio.

(e) A Vermont

financial institution shall not acquire a lien on its equity interests as

collateral for any extension of credit or other obligation nor acquire title to

such collateral except to prevent loss upon a loan or investment previously

made or an obligation created in good faith. If a Vermont financial institution

acquires such a lien upon its equity interest or acquires title to such equity

interest under the exception in this subsection, it shall not permit the lien

to continue for more than two years, nor shall it hold title to the equity

interest for more than one year, without the consent of the Commissioner.

(f) Except as

otherwise provided in subsection (e) of this section, and subject to subchapter

4 of chapter 202 and subchapter 2 of chapter 203 of this title, a Vermont

financial institution may repurchase or redeem its own equity interests. (Added

1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
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