§ 13601. Voluntary dissolution; procedure; criteria

(a) A mutual or cooperative financial institution shall submit to the Commissioner for approval a plan of dissolution prior to filing its articles of dissolution under Title 11A. The plan shall contain the following items:

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

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

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

(4) the plan to transfer to 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, there will be no distributions to depositors or members, without first providing for the obligations of the dissolving entity; 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 with the Secretary of State under Title 11A and proceed with the dissolution as provided by law.

(c) During its wind-up, a dissolved 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.)