Vermont Statutes Title 11 Sec. 926
Terms Used In Vermont Statutes Title 11 Sec. 926
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- Scrip: as used in this chapter includes certificates having no fixed maturity, transferable by delivery, and payable to bearer in lawful currency when realized out of the assets pledged to secure such scrip. See
- Scrip corporation: includes any person or corporation lawfully issuing scrip. See
- State: when applied to the different parts of the United States may apply to the District of Columbia and any territory and the Commonwealth of Puerto Rico. See
§ 926. Redemption
Scrip shall not be issued unless its redemption is secured by:
(1) Short-term notes and obligations of towns, cities, or other municipalities lawfully issued to such scrip corporation as hereinafter provided. Scrip may be issued to the amount of the face of such notes or obligations, exclusive of interest.
(2) The direct obligations of this State or of the United States; and scrip shall not be issued against the security of such obligations in excess of 75 percent of the face thereof or the market value thereof, whichever is the lesser.
(3) Deposits in banks having their principal place of business within this State and approved by the Commissioner. Scrip may not be issued against the security of such deposits to an amount in excess of one-third of the principal of such deposits assigned to the scrip corporation. The Commissioner may adopt rules limiting the percentage and maximum amount and providing for the minimum amounts exceeding the usual percentage of any single bank deposit which may be so assigned as security. Such amount and percentages may be varied with respect to the class of deposits, whether savings or commercial or on certificate of deposit, and also with respect to the amount of such deposits. (Amended 2015, No. 23, § 102.)