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The Vermont Statutes Online
Title
08
:
Banking and Insurance
Chapter
222
:
POWERS
Subchapter
001
:
GENERAL POWERS
§
32102. General powers
(a) Subject to
applicable laws and regulations, a Vermont credit union may exercise the
following powers:
(1) make
contracts;
(2) sue and be
sued;
(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
organization;
(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
liability;
(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;
and
(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.)