§ 32704. Limitation on loans to and investments in a CUSO
(a) A credit union may invest its funds in or make loans to a CUSO, provided the total of any such investment in or loan to any one CUSO does not exceed two percent of the total paid-in and unimpaired capital and surplus and share deposits as of its last calendar year-end financial report of the credit union without regard to the amount derived from the profitability of such CUSO.
(b) As used in subsection (a) of this section:
(1) paid-in and unimpaired capital and surplus means shares plus postclosing, undivided earnings (this does not include regular reserves or special reserves required by law, regulation, or special agreement between the credit union and its regulator or share insurer); and
(2) total investments in and total loans to CUSO will be measured consistent with generally accepted accounting principles.
(c) If the Commissioner determines that a credit union’s investments in or loans to any CUSO exceed the limitations of this section or are otherwise not prudent for the credit union to maintain, the Commissioner may require the credit union to divest such loans or investments. (Added 2005, No. 16, § 1, eff. July 1, 2005.)
Structure Vermont Statutes
Title 8 - Banking and Insurance
§ 32101. Applicability of chapter
§ 32103. Expanded powers of Vermont credit unions
§ 32202. Payment of deposits to administrators from another state or country
§ 32203. Trust deposits; payment on death of trustee
§ 32205. Payable on death accounts
§ 32206. Deposits of minors; exemption from trustee process
§ 32207. Provisions when title to deposit is litigated
§ 32208. Real estate trust and escrow
§ 32209. Claims not clearly consistent
§ 32211. Applicability of other laws
§ 32402. Commissioner approval
§ 32601. Failure to pay rent; removal of contents
§ 32701. Organization of a credit union service organization
§ 32702. Expansion of services
§ 32703. Records, reports, and examination
§ 32704. Limitation on loans to and investments in a CUSO
§ 32705. Investing in, lending to, or joining an existing CUSO