(a)A Vermont financial institution may invest its assets prudently in accordance with the best judgment of its governing body in a manner consistent with this section.
(b)A Vermont financial institution may not acquire more than five percent of the equity interest of any Vermont financial institution or of a Vermont bank holding company without the prior approval of the Commissioner.
(c)Notwithstanding any other provision of law to the contrary, a financial institution may invest its funds, operate a business, manage or deal in property, or take any other action over whatever period of time may reasonably be necessary to avoid loss on an investment or loan previously made or an obligation created in good faith.
(d)A Vermont financial institution’s governing body shall establish a writt
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(a) A Vermont financial institution may invest its assets prudently in accordance with the best judgment of its governing body in a manner consistent with this section.
(b) A Vermont financial institution may not acquire more than five percent of the equity interest of any Vermont financial institution or of a Vermont bank holding company without the prior approval of the Commissioner.
(c) Notwithstanding any other provision of law to the contrary, a financial institution may invest its funds, operate a business, manage or deal in property, or take any other action over whatever period of time may reasonably be necessary to avoid loss on an investment or loan previously made or an obligation created in good faith.
(d) A Vermont financial institution’s governing body shall establish a written investment policy, which it shall review and ratify at least annually, that addresses, at a minimum, the following:
(1) investment quality parameters;
(2) investment mix and diversification;
(3) investment maturities; and
(4) delegation of authority to officers and committees responsible for administering the portfolio.
(e) A Vermont financial institution shall not acquire a lien on its equity interests as collateral for any extension of credit or other obligation nor acquire title to such collateral except to prevent loss upon a loan or investment previously made or an obligation created in good faith. If a Vermont financial institution acquires such a lien upon its equity interest or acquires title to such equity interest under the exception in this subsection, it shall not permit the lien to continue for more than two years, nor shall it hold title to the equity interest for more than one year, without the consent of the Commissioner.
(f) Except as otherwise provided in subsection (e) of this section, and subject to chapter 202, subchapter 4 and chapter 203, subchapter 2 of this title, a Vermont financial institution may repurchase or redeem its own equity interests. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)