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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

226

:
SUSPENSION, LIQUIDATION, INSOLVENCY, CONSERVATION, INVOLUNTARY MERGER, AND DIRECTORS AND MANAGING OFFICERS OF A TROUBLED CREDIT UNION











 

§

36103. Conservatorship

(a) The

Commissioner may, ex parte without notice, appoint himself or herself or an

insuring organization or any other person as conservator and immediately take

possession and control of the business and assets of any credit union in any

case in which:

(1) The

Commissioner determines that such action is necessary to conserve the assets of

any credit union or to protect the interests of the members of such credit

union.

(2) A credit

union, by a resolution of its governing body, consents to such an action by the

Commissioner.

(3) The attorney

general notifies the Commissioner in writing that a credit union has been found

guilty of a criminal offense.

(4) There is a

willful violation of a cease and desist order which has become final.

(5) There is

concealment of books, papers, records, or assets of the credit union or refusal

to submit books, papers, records, or affairs of the credit union for inspection

to any examiner or to any lawful agent of the Commissioner.

(6) The credit

union is significantly undercapitalized and has no reasonable prospect of

becoming adequately capitalized.

(7) The credit

union is critically undercapitalized.

(b) Not later

than ten days after the date on which the Commissioner takes possession and

control of the business and assets of a credit union pursuant to subsection (a)

of this section, such credit union may apply to the Superior Court of

Washington County for an order requiring the Commissioner to show cause why the

Commissioner should not be enjoined from continuing such possession and

control. Except as provided in this subsection, no court may take any action,

except at the request of the Commissioner by regulation or order, to restrain

or affect the exercise of powers or functions of the Commissioner as

conservator.

(c) Except as

provided in subsection (b) of this section, the Commissioner may maintain

possession and control of the business and assets of such credit union and may

operate such credit union until such time:

(1) as the

Commissioner shall permit such credit union to continue business subject to

such terms and conditions as may be imposed by the Commissioner; or

(2) as such

credit union is liquidated in accordance with the provisions of section 36101

of this title.

(d) The

Commissioner may appoint such agents as he or she considers necessary in order

to assist the Commissioner in carrying out his or her duties as a conservator

under this subsection.

(e) All expenses

incurred by the Commissioner in exercising his or her authority under this

subsection with respect to any credit union shall be paid out of the assets of

such credit union.

(f) The

conservator shall have all the powers of the members, the directors, the

officers, and the committees of the credit union and shall be authorized to

operate the credit union in its own name or to conserve its assets in the

manner and to the extent authorized by the Commissioner.

(g) The

authority granted by this subsection is in addition to all other authority

granted to the Commissioner under this title. (Added 2005, No. 16, § 1, eff.

July 1, 2005.)