§ 34104 - Nonconforming activities; cessation - Vermont Statutes

§ 34104. Nonconforming activities; cessation

(a) Applicability. If, as a result of a merger or conversion pursuant to this title, the continuing credit union is to be of a different type or of a different character than any one or all of the participating or converting institutions, such continuing credit union shall be subject to the conditions and limitations as set forth in this chapter.

(b) Plan for termination. The plan of merger or conversion shall set forth the method and schedule for terminating those activities not permitted by the laws of this state for the continuing credit union, but which were authorized for any of the participating or converting institutions.

(c) Effective date. The plan of merger or conversion shall state that from the effective date of such action, the continuing credit union shall not engage in any nonconforming activities, except to the extent necessary to fulfill obligations existing prior to merger or conversion, pursuant to subsection (d) of this section.

(d) Compliance with limitations. If, as a result of such merger or conversion, the continuing credit union exceeds any lending, investment, or other limitations imposed by this title, it shall conform to such limitations within such period of time as shall be established by the commissioner.

(e) Divestiture. The commissioner may, as a condition to such merger or conversion, require a nonconforming activity to be divested in accordance with such additional requirements as he or she may deem appropriate under the circumstances. (Added 2005, No. 16, § 1, eff. July 1, 2005.)