§ 30101. Definitions

As used in this part:

(1) “Chief executive officer” means the person appointed by the governing body to be in charge of the operations of the credit union, regardless of the title given to such person.

(2) “Commissioner” means the Commissioner of Financial Regulation.

(3) “Community development credit union” means a credit union that serves predominantly low-income members, as defined by the Commissioner, or a credit union that meets the requirements of a community development financial institution as defined in the Community Development Banking and Financial Institutions Act of 1994, 12 U.S.C. § 4702(5).

(4) “Corporate credit union” means a credit union organized under chapter 221, subchapter 7 of this title whose field of membership consists primarily of other credit unions.

(5) “Credit union” means any Vermont credit union, state credit union, or federal credit union.

(6) “Credit union service organization” or “CUSO” means an entity, organized under chapter 222, subchapter 7 of this title or organized under state or federal law, whose services are closely related to credit union business, are convenient and useful to credit union business, are reasonably related to the operations of a credit union, or are financial in nature, as determined by the Commissioner.

(7) “Department” means the Vermont Department of Financial Regulation.

(8) “Director” means a member of the governing body of a credit union.

(9) “Executive committee” means the committee, if any, established by the governing body under section 31303 of this title.

(10) “Federal credit union” means a credit union organized pursuant to the Act of Congress, entitled the “Federal Credit Union Act,” 12 U.S.C. Chapter 14, as amended.

(11) “Financial institution” means a financial institution as defined in subdivision 11101(32) of this title.

(12) “Governing body” means the body that oversees the affairs of a credit union. The governing body may also be referred to as the “board of directors,” “board of trustees,” or “board of managers,” depending upon the organizational structure of the credit union.

(13) “Home state” means, for a federal credit union, the state in which the main office of the federal credit union is deemed to be located, and for a state credit union, the state by which the credit union is chartered.

(14) “Host state” means a state, other than the home state of a credit union, in which the credit union maintains or seeks to establish and maintain an office.

(15) “Immediate family member” means persons related by blood, civil marriage, or civil union and includes foster children, stepchildren, and adopted children, as well as surviving spouses of persons who were members in good standing at the time of their death.

(16) “Insider” means a director, an executive officer, a member of a governing-body-appointed committee, a member of an elected committee, a member of senior management, or any person identified by the governing body as someone who participates or has authority to participate in the major policy making functions of the credit union.

(17) “Member” means a person or entity within the credit union’s field of membership who has been duly admitted as a member, has paid any required entrance or membership fee, has paid in one or more shares, and has complied with such other requirements as the organizational documents specify.

(18) “Member business loan” means any loan, line of credit, or letter of credit, the proceeds of which will be used by the member for the following purposes, subject to rules adopted by the Commissioner:

(A) commercial;

(B) corporate;

(C) agricultural; or

(D) other business investment property or venture.

(19) “Net worth” means the retained earnings balance of the credit union at quarter end as determined under generally accepted accounting principles. Only undivided earnings, including any segregated allocations of undivided earnings, are included in net worth. For community development credit unions, net worth also includes secondary capital accounts that are uninsured and subordinate to all other claims.

(20) “Organizational document” means the credit union’s charter, certificate of organization, articles of incorporation, articles of association, articles of organization, bylaws or other internal governance documents, operating agreement, partnership agreement, or any other similar document pertaining to the credit union.

(21) “Regular reserve account” means the account established and maintained in accordance with section 31502 of this title for the purpose of absorbing losses that exceed undivided earnings and other appropriations.

(22) “Reserves” means all reserves, including the allowance for loan and lease losses account, undivided earnings or surplus, and accumulated gain or loss on available for sale securities.

(23) “Retained earnings” means undivided earnings, regular reserves, and any other appropriations designated by management or by state or federal regulatory authorities.

(24) “State credit union” means a credit union organized under the laws of a state other than Vermont or by special act of the legislature of a state other than Vermont and is regulated in its home state in an equivalent manner, as determined by the Commissioner, to a Vermont credit union. Nothing in this definition shall be deemed to be a grant of authority to any person to operate as a credit union unless otherwise authorized under law.

(25) “Supervisory committee” means the committee established in accordance with the standards and procedures established in section 31306 of this title.

(26) “Vermont credit union” means a credit union organized under the laws of the State of Vermont. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2009, No. 3, § 12a, eff. Sept. 1, 2009; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012.)