§12501. Voluntary dissolution; procedure; criteria

Link to law: http://legislature.vermont.gov/statutes/section/08/202/12501
Published: 2015

Print

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.)
Read Entire Law on legislature.vermont.gov