§ 36102 — Involuntary merger of credit union

Vermont § 36102

• Jurisdiction: Vermont
• Title 8: Title 8: Banking and Insurance
• Ch. 226: Chapter 226: Suspension, Liquidation, Insolvency, Conservation, Involuntary Merger, and Directors and Managing Officers of a Troubled Credit Union

Text

(a) Notwithstanding any other provision of law, the Commissioner may initiate the involuntary merger of a credit union that is insolvent or is in danger of insolvency or is operating in an unsafe or unsound manner with any other credit union or may authorize a credit union to purchase any of the assets of or assume any of the liabilities of any other credit union that is insolvent or in danger of insolvency or is operating in an unsafe or unsound manner if the Commissioner is satisfied that:
(1) an emergency requiring expeditious action exists with respect to such other credit union;
(2) other alternatives are not reasonably available; and
(3) the public interest would best be served by approval of such merger, consolidation, purchase, or assumption.
(b) The credit union may request a stay of the involuntary merger by appealing to the Washington Superior Court.
(c)(1) Notwithstanding any other provision of law, the Commissioner may authorize an institution whose deposits or accounts are insured to purchase any of the assets of or assume any of the liabilities of a credit union that is insolvent or in danger of insolvency or is operating in an unsafe or unsound manner.
(2) For purposes of the authority contained in this section, insured share and deposit accounts of the credit union may, upon consummation of the purchase and assumption, be converted to insured deposits or other comparable accounts in the acquiring institution, and the Commissioner and the insuring organization shall be absolved of any liability to the credit union’s members with respect to those accounts.
(d) Notwithstanding any other provision of law, the Commissioner may waive the need for a membership vote of both the acquired and continuing credit union to approve the involuntary merger and may waive the requirement that the governing body of the acquired credit union approve the involuntary merger.

Legislative History

(Added 2005, No. 16, § 1, eff. July 1, 2005.)