§ 13403. Powers and duties of the governing body

(a) The governing body may exercise any and all powers of an institution not expressly reserved to the corporators or members by this title or by the institution's organizational documents or internal governance documents.

(b) The governing body shall see that all funds of the institution are invested only in accordance with section 14107 of this title.

(c) The governing body may, in its discretion and so far as is consistent with its duties, appoint an executive committee from its members, such committee to conduct the business of the institution between meetings of the governing body; provided that all transactions of such executive committee shall be reported to the governing body at its next meeting and incorporated into the records of such meetings.

(d) The governing body shall require security for the fidelity and faithful performance of duties by the officers, employees, and agents of the financial institution, in such amount as the governing body shall deem necessary or as the Commissioner may require. Such security shall consist of a bond executed by one or more surety companies authorized to transact business in this State. The Commissioner may increase such amount from time to time as circumstances may require. The expense of such bond shall be assumed by the institution.

(e) The governing body shall also direct and require suitable insurance protection to the financial institution against burglary, robbery, theft, and other similar insurable hazards to which the financial institution may be exposed in the operation of its business on the premises or elsewhere.

(f) The governing body shall be responsible for prescribing at least once in each year the amount or penal sum of those bonds or policies and the sureties or underwriters thereon, after giving due and careful consideration to all known elements and factors constituting the risk or hazards. That action shall be recorded in the minutes of the governing body. The Commissioner may require a financial institution to furnish an attested duplicate of the bonds and policies required by this section.

(g) The Commissioner may require a Vermont financial institution to secure additional bonds or insurance. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)