§ 19501. State Financial Institutions

§ 19501. Petition; powers; procedure

(a) The Commissioner may apply to the Superior Court of Washington County to be appointed ancillary receiver of a state financial institution or any branch or subsidiary of a state financial institution in hazardous financial condition, if the Commissioner finds that:

(1) the protection of customers or depositors in this State so requires;

(2) there are sufficient assets of the state financial institution located in this State to justify the appointment of an ancillary receiver; and

(3) the Federal Deposit Insurance Corporation has not been appointed receiver of the entity.

(b) The Court may issue an order appointing the Commissioner on whatever terms it shall deem appropriate. The Commissioner, as receiver, shall administer or liquidate the assets and deposits of such financial institution found in this State under the provisions of this chapter as though the entity were a Vermont financial institution.

(c) If a person in the home state of the entity or the Federal Deposit Insurance Corporation is appointed receiver subsequent to the appointment of the Commissioner under subsections (a) and (b) of this section, the Commissioner shall notify the Superior Court. The Court may release the Commissioner as receiver if the Court finds that the interests of Vermont customers or depositors of the entity are adequately protected in the proceedings in the home state of the entity. The Court may impose conditions on the entity to assure protection of its Vermont customers or depositors.

(d) The filing or recording of the order with the Superior Court of Washington County or the town clerk of the town in which its principal office or place of business is located; or, in the case of real estate, with the town clerk of the town where the property is located, and such filing or recording shall impart the same notice that a deed, bill of sale, or other evidence of title duly filed or recorded with that town clerk would have imparted. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001.)