§ 12501. Voluntary dissolution; procedure; criteria

(a) An investor-owned Vermont financial institution shall submit to the Commissioner for approval a plan of dissolution or wind-up prior to filing its articles of dissolution under Title 11A or winding up its business under Title 11. The plan shall contain the following items:

(1) pro forma financial statements that demonstrate that the financial institution will, upon dissolution or during its wind-up, discharge or make provision for discharging its liabilities;

(2) a method to distribute all remaining assets among its investors according to their interests;

(3) the process of and resources dedicated to the oversight of the dissolution or winding up of the financial institution;

(4) the plan to transfer to any of its affiliates or any other financial institution its deposit, loan, and trust accounts, including escheat of all remaining deposit accounts to the State of Vermont;

(5) the procurement or continuation of insurance or the provision of other security as the Commissioner deems necessary;

(6) an acknowledgment that, before the articles of dissolution are filed or the wind-up begins, there will be no distributions or equity interest repurchases without the Commissioner's prior written approval; and

(7) such other information or assurances as the Commissioner may require.

(b) Upon approval of the plan, the financial institution may file its articles of dissolution under Title 11A and proceed with its dissolution or may proceed with the wind-up and dissolution under Title 11, as provided by law.

(c) During its wind-up, a dissolved or dissolving entity shall not transact any further banking business after its deposit insurance has terminated. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)