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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

220

:
SUPERVISION AND REGULATION






Subchapter

007
:
ENFORCEMENT










 

§

30701. Enforcement powers of Commissioner

(a) The

Commissioner may:

(1) Restrict the

withdrawal of share or deposit accounts from a Vermont credit union or a

Vermont office of a state-chartered credit union when the Commissioner finds

that extraordinary circumstances make the restriction necessary for the proper

protection of members in the affected credit union.

(2) Order any

person to cease violating this title, a lawful regulation, or order of the

Commissioner issued under it, or to cease engaging in any unsafe or unsound

practice.

(3) Except as

provided in subdivision (4) of this subsection, impose an administrative

penalty of not more than $15,000.00 upon any credit union or any person who,

for each violation of this title, a lawful regulation, or order of the

Commissioner issued under it:

(A) knowingly

violates this title or a lawful regulation or order issued under it;

(B) has

knowingly engaged or participated in any materially unsafe or unsound practice

in connection with a credit union; or

(C) has

knowingly committed or engaged in any act, omission, or practice which

constitutes a breach of fiduciary duty to the credit union, including,

violations of section 31313 of this title.

(4) Impose an

administrative penalty of not more than $100.00 per day on any person who fails

without good cause to file any report or other filing under this title when

due.

(5) Remove from

a Vermont credit union or state credit union regulated under this title any

director, officer, committee member, employee, agent of the credit union, or

other person who:

(A) knowingly

violates this title or a lawful regulation or order issued under it;

(B) is convicted

of a crime involving dishonesty;

(C) has

knowingly engaged or participated in any materially unsafe or unsound practice

in connection with the credit union;

(D) has

knowingly committed or engaged in any act, omission, or practice which

constitutes a breach of fiduciary duty to the credit union; or

(E) is not

eligible for bond coverage or who loses his or her ability to be covered by a

bond.

(b) In

determining the amount of any administrative penalty assessed pursuant to this

section, the Commissioner shall consider the following factors:

(1) the

appropriateness of the administrative penalty with respect to the financial

resources and good faith of the person or credit union charged;

(2) the gravity

of the violation or practice;

(3) the history

of previous violations or practices of a similar nature;

(4) the economic

benefit, if any, derived by any person from the violation or practice;

(5) whether the

credit union has suffered or probably will suffer financial loss or other

damage;

(6) whether the

interest of members could be seriously prejudiced by such violation, practice,

or breach of fiduciary duty; or

(7) other

factors as justice may require.

(c)(1) Except as

provided in subdivision (2) of this subsection, the Commissioner shall provide

notice of any enforcement order proposed pursuant to this section and the

grounds therefore by mail to the credit union and to any person named as a

party to the enforcement proceeding. The credit union or any person so served

may, within 30 days of service on the credit union, request that the

Commissioner hold a hearing. If no hearing is requested, the proposed order

shall become final 30 days after service on the credit union or such person.

The provisions of 3 V.S.A. chapter 25 and any applicable Department regulations

shall govern any hearing held by the Commissioner under this section. An appeal

under this section shall be filed within 30 days of the date of the

Commissioner's decision and shall be to the Washington Superior Court.

(2)

Notwithstanding subdivision (1) of this subsection, the Commissioner may, ex

parte without notice, issue any enforcement order under this section in any

case in which the Commissioner determines such action is necessary to:

(A) conserve the

assets of any credit union; or

(B) protect the

interests of the members of such credit union.

(d) The hearing

on a removal order shall be private unless the Commissioner determines that a

public hearing is necessary to protect the public interest. If the Commissioner

deems it necessary to assure the continued safety and soundness of the credit

union, the Commissioner may, in his or her discretion, order an immediate

suspension of any person pending completion of further administrative

proceedings on his or her removal. (Added 2005, No. 16, § 1, eff. July 1, 2005;

amended 2013, No. 29, § 18, eff. May 13, 2013.)