Corporate Credit Unions

V.S.A. tit. 8, ch. 221, subch. 7

in effect

8 V.S.A. § 31701 General application

31701. General application (a) Any corporate credit union chartered by the Commissioner shall be subject to such rules and orders as the Commissioner deems appropriate and, except as otherwise specifically provided in such rules or orders, shall be vested with or subject to the same rights, privileges, duties, restrictions, penalties, liabilities, conditions, and limitations that would apply to all Vermont state-chartered credit unions. (b) A corporate credit union shall be federally insured by the National Credit Union Administration (NCUA), or its successor, and shall be subject to such regulations and orders as the NCUA or its successor deems appropriate. In the event State laws or rules are inconsistent with the regulations of the NCUA or its successor, the federal regulations will supersede. Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 330, eff. July 1, 2022.

8 V.S.A. § 31702 Organization

31702. Organization (a) Application to form a corporate credit union shall be made in writing to the Commissioner. A corporate credit union shall be organized and operated under the provisions of this part, except to the extent such provisions are not consistent with this subchapter. (b) A corporate credit union shall use the word “corporate” in its name. Added 2005, No. 16, § 1, eff. July 1, 2005.

8 V.S.A. § 31703 Membership

31703. Membership (a) Membership in the corporate credit union may consist of Vermont-chartered credit unions, any other state-chartered credit union, any federally chartered credit union, organizations or associations of credit unions, and such other organizations provided for in the articles of incorporation. (b) A member of the corporate credit union shall designate one person to be its authorized representative to attend meetings of the corporate credit union and to vote on behalf of the member. A credit union member of the corporate credit union may only designate a member of its own credit union as its authorized representative. No person may serve as the authorized representative of more than one member of the corporate credit union. Added 2005, No. 16, § 1, eff. July 1, 2005.

8 V.S.A. § 31704 Purposes

31704. Purposes A corporate credit union is a credit union whose members consist primarily of other credit unions and whose purposes are to: (1) accumulate and prudently manage the liquidity of its member credit unions through interlending and investment services; (2) act as an intermediary for credit union funds between members and other corporate credit unions; (3) obtain liquid funds from other credit union organizations, financial intermediaries, and other sources; (4) foster and promote in cooperation with other state, regional, and national corporate credit unions and credit union organizations or associations the economic security, growth, and development of member credit unions; and (5) perform such other financial services of benefit to its members that are authorized by the Commissioner. Added 2005, No. 16, § 1, eff. July 1, 2005.

8 V.S.A. § 31705 Powers

31705. Powers A corporate credit union shall enjoy the powers and privileges of any other credit union incorporated under this part in addition to those powers enumerated in this subchapter, notwithstanding any limitation or restrictions found elsewhere in this part. The Commissioner may adopt such rules concerning the establishment and operation of corporate credit unions as he or she deems necessary and proper. Subject to such rules, a corporate credit union may: (1) accept shares or deposits in any form from its members; from other state, regional, or national corporate credit unions; and from credit union organizations and associations; (2) make loans to its members; to other credit unions; and to other state, regional, and national corporate credit unions, organizations, and associations of credit unions; (3) establish lines of credit for members and participate with other credit unions in making loans to its members under the terms and conditions determined by the board of directors; (4) invest in the shares of or make deposits in credit unions; (5) borrow money, accept demand deposits, and issue notes or debentures; (6) acquire or sell the assets and assume the liabilities of a member; and (7) enter into agreements with credit unions to discount or purchase loans made pursuant to government-guaranteed loan programs, real estate loans made by members, or any obligations of the United States or any agency thereof held by members. Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 331, eff. July 1, 2022.

8 V.S.A. § 31706 Reserves

31706. Reserves Each corporate credit union shall maintain such reserves and accounts as required by the regulations of the National Credit Union Administration, or its successor, as amended from time to time. Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 332, eff. July 1, 2022.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/08/221Fetched: 10/21/2026