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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
202
:
ORGANIZATION AND MANAGEMENT OF INVESTOR-OWNED FINANCIAL INSTITUTIONS
Subchapter
005
:
VOLUNTARY DISSOLUTION
§
12501. Voluntary dissolution; procedure; criteria
(a) An
investor-owned Vermont financial institution shall submit to the Commissioner
for approval a plan of dissolution or wind-up prior to filing its articles of
dissolution under Title 11A or winding up its business under Title 11. The plan
shall contain the following items:
(1) pro forma
financial statements that demonstrate that the financial institution will, upon
dissolution or during its wind-up, discharge or make provision for discharging
its liabilities;
(2) a method to
distribute all remaining assets among its investors according to their
interests;
(3) the process
of and resources dedicated to the oversight of the dissolution or winding up of
the financial institution;
(4) the plan to
transfer to any of its affiliates or any other financial institution its
deposit, loan, and trust accounts, including escheat of all remaining deposit
accounts to the State of Vermont;
(5) the
procurement or continuation of insurance or the provision of other security as
the Commissioner deems necessary;
(6) an
acknowledgment that, before the articles of dissolution are filed or the
wind-up begins, there will be no distributions or equity interest repurchases
without the Commissioner's prior written approval; and
(7) such other
information or assurances as the Commissioner may require.
(b) Upon
approval of the plan, the financial institution may file its articles of
dissolution under Title 11A and proceed with its dissolution or may proceed
with the wind-up and dissolution under Title 11, as provided by law.
(c) During its
wind-up, a dissolved or dissolving entity shall not transact any further
banking business after its deposit insurance has terminated. (Added 1999, No.
153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)
