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Can you summarize 8 VTST Chapter 226?
Banking and Insurance > Suspension, Liquidation, Insolvency, Conservation, Involuntary Merger, and Directors and Managing Officers of a Troubled Credit Union
Short Summary
This legal document governs the involuntary merger of credit unions in Vermont. The Commissioner has the authority to merge a credit union that is insolvent, in danger of insolvency, or operating unsafely or unsoundly with another credit union. The Commissioner can waive the need for a membership vote and the requirement for the governing body’s approval of the acquired credit union. Credit unions have the option to request a stay of the involuntary merger by appealing to the Washington Superior Court. The document also governs the appointment of a conservator for credit unions. The Commissioner has the authority to appoint a conservator without notice in certain circumstances to conserve the assets of a credit union or protect the interests of its members. The Commissioner can operate the credit union or liquidate it. The document further governs the suspension, voluntary liquidation, and involuntary liquidation of credit unions. The Commissioner has the authority to temporarily suspend a credit union’s operations if it is bankrupt, insolvent, or operating unsafely or unsoundly. The credit union’s governing body can respond to the suspension notice, request a hearing, or request involuntary liquidation. The Commissioner can revoke the credit union’s charter, appoint a liquidating agent, and proceed with liquidation if the credit union fails to respond or request a hearing. The document outlines the process for voluntary liquidation, where a majority of the credit union’s membership can vote to dissolve the credit union. Involuntary liquidation can be initiated if the Commissioner rejects the credit union’s plan to continue operations. The liquidating procedure involves discharging debts, collecting and distributing assets, and winding up the credit union’s business. Once all assets have been liquidated and distributed, a certificate of liquidation must be filed with the Secretary of State, resulting in the dissolution of the credit union. The document does not specify any penalties for non-compliance or violation of its provisions.
Whom does it apply to?
Credit unions in Vermont, the Commissioner, the governing body of credit unions, members, directors, officers, committees, liquidating agents, and the Secretary of State
What does it govern?
Involuntary merger of credit unions, appointment of a conservator for credit unions, suspension, voluntary liquidation, and involuntary liquidation of credit unions
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Vermont