Vermont Statutes Title 11 Sec. 933
Terms Used In Vermont Statutes Title 11 Sec. 933
- 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.
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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
§ 933. Security and redemption funds
Portions of bank deposits assigned to the scrip corporation shall be transferred on the books of the bank or trust company to such corporation and each portion so transferred shall be divided into two parts: a one-third part and a two-thirds part. The one-third part, hereinafter called the trust redemption part, both principal and interest, shall be the absolute property of such scrip corporation. The principal, but not the interest, of the two-thirds part, hereinafter called the security part, shall be deemed to be pledged to such scrip corporation to be used proportionately with all other bank or trust company deposits so pledged to it, to make up any deficiency in the trust fund needed to redeem all outstanding scrip. From time to time, the Commissioner may issue such regulations and orders as he or she may deem necessary for the protection of the holders of such scrip, requiring such percentage of such security fund, theretofore or thereafter accruing, to be paid into the redemption trust fund of such scrip corporation, or releasing from the lien aforesaid all or any part of the security fund accordingly as he may deem that all or any part of such security fund is no longer needed. Any part of the security fund released from the lien aforesaid shall be the absolute property of the assignor.