§32102. General powers

Link to law: http://legislature.vermont.gov/statutes/section/08/222/32102
Published: 2015

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Banking and Insurance








32102. General powers

(a) Subject to

applicable laws and regulations, a Vermont credit union may exercise the

following powers:

(1) make


(2) sue and be


(3) adopt and

use a common seal and alter such seal at pleasure;

(4) purchase, hold,

and dispose of property necessary or incidental to its operations;

(5) establish,

acquire, invest or participate in, or utilize a credit union service


(6) subject to

the approval of the Commissioner, contract with another credit union or credit

unions for office or agency services or to provide those services to the

customers of that credit union;

(7) subject to

the approval of the Commissioner, purchase the assets of another credit union

or sell all or substantially all of its assets to another credit union;

(8) offer

related financial services to its members, including electronic financial

services, safe deposit boxes, negotiable instruments, leasing, and

correspondent arrangements with other financial institutions, and charge a

reasonable fee for such services;

(9) hold

membership in other credit unions organized under the laws of this State, the

laws of the United States, or the laws of another state or territory of the

United States and in associations and organizations;

(10) make reasonable

contributions to any nonprofit civic, charitable, or service organization;

(11) require the

payment of an entrance fee or annual membership fee, or both, of any person

admitted to membership, pursuant to resolution of the governing body;

(12) receive

savings from its members in the form of shares and honor requests for

withdrawals or transfers of all or any part of member share accounts, in any

manner approved by the governing body;

(13) lend funds

to its members;

(14) Subject to

rules adopted by the Commissioner, sell at a discount any obligations owed to

the credit union;

(15) invest

surplus funds, subject to the provisions of section 32104 of this title;

(16) Invest in

shares of other credit unions and make deposits in other financial institutions,

provided such credit union or financial institution is federally insured;

(17) assess fees

and charges to members subject to applicable laws and regulations, for failure

to meet promptly their obligations to the credit union;

(18) declare and

pay dividends on various types of share accounts, pay interest on deposit

accounts held by a community development credit union, and pay interest refunds

to borrowers;

(19) subject to

applicable state and federal laws and regulations, including applicable

insurance laws, act as the agent for any fire, life, accident, health, credit

life, disability or other insurance company, other than a title insurance

company, authorized by the State of Vermont, by soliciting and selling

insurance and collecting premiums on policies issued by such company; and

receive for services so rendered such fees or commissions as may be agreed upon

by the credit union and the insurance company for which it may act as agent;

provided, however, that no such credit union shall in any case assume or

guaranty the payment of any premium on insurance policies issued through its

agency by its principal; and provided further that the credit union shall not

guaranty the truth of any statement made by an insured in filing his or her

application for insurance;

(20) purchase

and maintain insurance on behalf of any person who is or was a director,

officer, employee, or agent of the credit union, or who is or was serving at

the request of the credit union as a director, officer, employee, or agent of

another corporation, partnership, joint venture, trust, or other enterprise,

against any liability asserted against such person and incurred by such person

in any such capacity or arising out of such person's status as such, whether

the credit union would have the power to indemnify such person against such


(21) enter into

lease agreements, lease contracts, and lease-purchase agreements with members;

(22) indemnify

and limit the personal liability of volunteers;

(23) enter into

marketing arrangements and joint ventures to facilitate its members' voluntary

purchase of goods, insurance, and other services from third parties. A credit

union may be compensated for services so provided;

(24) borrow an

aggregate amount not exceeding 20 percent of its assets, and borrow amounts in

excess of 20 percent, but not in excess of 50 percent of its assets, if prior

written approval has been given by the Commissioner;

(25) with the

approval of the Commissioner, maintain one or more offices other than the

principal place of business as may be necessary to conduct the affairs of the

credit union;

(26) accept

payment for any electric, electric distribution, gas, water, or telephone

company or other utility company operating within this State in receiving money

due such company for utility services furnished by it;

(27) provide

loan processing, loan servicing, member check and money order cashing services,

disbursement of share withdrawals and loan proceeds, money orders, internal

audits, automated teller machine services, and other similar services to other

Vermont credit unions, federal credit unions, and out-of-state credit unions;


(28) exercise

other powers and actions as authorized under this part of this title or as

authorized by regulation of the Commissioner.

(b) The

expressed powers for a credit union authorized under this section do not

preclude the exercise of additional powers deemed to be incidental to the

transaction of a general credit union business pursuant to this part.

(c) Subject to

the limitations of this part and other applicable laws and regulations, a

Vermont credit union may exercise the powers granted nonprofit corporations

under Title 11B. In the event of any conflict between the provisions of Title

11B and this title, the provisions of this title shall govern. (Added 2005, No.

16, § 1, eff. July 1, 2005.)