2011 Vermont Code
Title 08 Banking and Insurance
Chapter 202 ORGANIZATION AND MANAGEMENT OF INVESTOR-OWNED FINA
§ 12103 Requirements to commence business; paid-in minimum capital; examination; certificate of authority

§ 12103. Requirements to commence business; paid-in minimum capital; examination; certificate of authority

(a) At the time the certificate of general good is issued, the commissioner shall issue an order granting permission to organize which shall set forth the minimum amount of paid-in capital that the financial institution will be required to have to begin business, which in no event shall be less than $250,000.00.

(b) The commissioner may set different minimum paid-in capital requirements for different types of financial institutions, and in determining such amounts may consider such factors as the population of the area where the proposed financial institution is to be located, competition among financial institutions in that locale, the projected volume and type of business to be conducted, the inherent risks in the business to be conducted and the need to protect depositors and other creditors of the institution.

(c) All capital contributions shall be in the form of cash, unless otherwise approved by the commissioner.

(d) An organization that has received a certificate of general good to conduct business as a financial institution may not commence business until the commissioner certifies in writing that the required minimum capital has actually been paid in and that all other terms and conditions contained in the certificate of general good have been satisfied.

(e) When the entire paid-in capital of a financial institution has been received by the financial institution, a complete list of the investors with the name and post office address of each and the portion of ownership interest held by each shall be filed with the commissioner, who shall thereupon cause an examination to be made. If, after the examination, it appears to the commissioner that the required capital has been paid in, the commissioner shall issue a certificate under seal authorizing the financial institution to commence business, and this certificate shall be filed with the secretary of state. A financial institution shall not commence business until that certificate is issued and filed. In the case of a violation of this provision, the officers and directors assenting thereto shall be personally liable for all debts incurred before the certificate is issued and filed. (Added 1999, No. 153 (Adj. Sess.), { 2, eff. Jan. 1, 2001.)