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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

203

:
ORGANIZATION AND MANAGEMENT OF MUTUAL AND COOPERATIVE FINANCIAL INSTITUTIONS






Subchapter

002
:
ORGANIZATIONAL FINANCE










 

§

13203. Capital notes or debentures as capital reserve

Subject to prior

approval of the Commissioner, a financial institution may issue capital notes

or debentures, the proceeds from the sale of which may be used in lieu of

capital deposits to establish part of the capital reserve required in section

13201 of this title, provided that:

(1) such capital

notes or debentures are issued pursuant to the organization's borrowing powers;

(2) such notes

or debentures are subject to conditions governing the repayment of principal

and interest which are comparable to the requirements governing return of

initial capital deposits as set forth in section 13202 of this title; and

(3) repayment of

the principal amount of such capital notes or debentures issued pursuant to

this section shall have priority over the return of any capital deposits in the

capital reserve. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)