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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.)