The Vermont Statutes Online
Banking and Insurance
SUSPENSION, LIQUIDATION, INSOLVENCY, CONSERVATION, INVOLUNTARY MERGER, AND DIRECTORS AND MANAGING OFFICERS OF A TROUBLED CREDIT UNION
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:
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
(2) A credit
union, by a resolution of its governing body, consents to such an action by the
(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
(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.
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.
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.
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.)