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Can you summarize 8 VTST Chapter 210?
Banking and Insurance > Mutual or Cooperative Holding Company
Short Summary
These legal documents govern various aspects of mutual holding companies and reorganized financial institutions in Vermont. The first document focuses on the issuance of capital stock and debentures by reorganized savings financial institutions, specifically applying to mutual holding company subsidiary financial institutions. It allows for the issuance of voting common stock to persons other than the mutual holding company, with depositors having the opportunity to participate in the offering. Nonvoting stock, preferred stock, or capital debentures can also be issued to the mutual holding company or any person other than the mutual holding company. The second document outlines the procedures for the organization of a mutual holding company subsidiary financial institution, including the role of the reorganizing institution’s governing body as incorporators. It requires the transfer of assets from the reorganizing institution to the subsidiary institution and the filing of an amended and restated charter for the continuing entity as a mutual holding company. The third document governs the reorganization of mutual or cooperative financial institutions into mutual holding companies. It ensures the continuity of the reorganizing financial institution and grants depositors proprietary interests in the net worth of the mutual holding company. Creditors of the financial institution have rights solely with respect to the mutual holding company subsidiary financial institution. The document also outlines the ownership and governance structure of the mutual holding company and authorizes various activities, subject to applicable laws. The fourth document governs the adoption of a plan of reorganization for mutual or cooperative financial institutions. It requires approval by the governing body and a two-thirds affirmative vote of the mutual voters. The Commissioner’s approval is also required, and depositors must be provided with a 60-day notice of the effective date of the reorganization. Overall, these documents establish the framework for the reorganization, ownership, and governance of mutual holding companies in Vermont.
Whom does it apply to?
Mutual holding company subsidiary financial institutions, reorganizing mutual or cooperative financial institutions, mutual voters, depositors, creditors, governing body of the financial institution, Commissioner
What does it govern?
Issuance of capital stock and debentures by reorganized savings financial institutions, procedures for the organization of a mutual holding company subsidiary financial institution, reorganization of mutual or cooperative financial institutions into mutual holding companies, adoption of a plan of reorganization for mutual or cooperative financial institutions
What are exemptions?
No exemptions are mentioned in this document.
What are the Penalties?
No penalties are mentioned in this document.
Jurisdiction
Vermont