§ 33103. Offices of state-chartered credit unions

(a) A state credit union may, with the prior written approval of the Commissioner, establish one or more offices in this State, provided the laws of its home state authorizes under conditions no more restrictive than those imposed by the laws of this State, as determined by the Commissioner, a Vermont credit union to establish an office in that state. Prior to approving the state credit union’s application to establish an office in this State, the Commissioner must find that such state credit union:

(1) is financially solvent;

(2) maintains bonds and share insurance as required under chapter 221, subchapter 6 of this title;

(3) is effectively examined and supervised by an official of the state in which it is chartered; and

(4) is in compliance with the requirements set forth in subsection 33102(b) of this title.

(b) The Commissioner may examine and supervise the Vermont offices of any state credit union and may enter into agreements with other state credit union regulators concerning such examinations or supervision.

(c) To the extent federal law does not preempt the same, no state credit union may conduct business in this State unless it:

(1) charges interest in compliance with the provisions of 9 Vt. Stat. Ann. chapter 4 when making loans in this State;

(2) complies with the consumer protection statutes and rules applicable to Vermont credit unions;

(3) agrees to furnish the Commissioner with a copy of the examination report conducted by its regulatory agency or to submit to an examination by the commissioner; and

(4) designates and maintains an agent for the service of process in this State.

(d) The Commissioner may, after giving notice and an opportunity to be heard to any state credit union, revoke or suspend the approval given to such state credit union to establish an office in this State for any reason that would be sufficient grounds to deny an application to establish an office in this State.

(e) The Commissioner may revoke the approval of a state credit union conducting business in this State if the Commissioner finds that:

(1) The state credit union no longer meets the requirements of this section.

(2) The state credit union has violated the laws of this State or lawful rules or orders issued by the Commissioner.

(3) The state credit union has engaged in a pattern of unsafe or unsound credit union practices.

(4) Continued operation by the state credit union is likely to have a substantially adverse impact on the financial, economic, or other interests of residents of this State.

(5) The state credit union is prohibited from operating in its home state. (Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 340, eff. July 1, 2022.)