Vermont § 15202 - Establishment of branches in Vermont by financial institutions

§ 15202. Establishment of branches in Vermont by financial institutions

• (a) A state financial institution, foreign bank, or national bank may establish a branch
  in this State pursuant to this section and in accordance with applicable state and
  federal financial institution laws. (b) The establishment of a branch in this State under this section shall be accomplished
  by: (1) a merger, or consolidation with, or the purchase of all or substantially all of the
  assets of, a financial institution or acquisition of a branch located in this State;
  or (2) establishment of a branch; provided, however, that the law of the home state of any
  state financial institution or national financial institution proposing to establish
  one or more de novo branches in this State must expressly authorize, under conditions
  no more restrictive than those imposed by the laws of this State as determined by
  the Commissioner, the financial institution whose home state is this State to engage
  in interstate branch establishment of de novo branches in that state. A financial
  institution that is not a Vermont financial institution and is establishing a branch
  in this State shall file a copy of the branch application, with any amendments to
  the application, with the Commissioner at the time the application is filed with any
  supervisory agency. (c) A merger or consolidation pursuant to this section involving a Vermont financial institution
  shall be in accordance with and subject to the provisions of chapter 207 of this title,
  except that the application requirement shall be treated as a notice requirement and
  the Commissioner may file an objection with the applicable supervisory agency with
  jurisdiction over the transaction if the transaction fails to comply with law. Approval
  of the Commissioner under chapter 207 of this title shall not be required. (d) Any merger, consolidation, or acquisition pursuant to this section shall be subject
  to the provisions of section 14108 of this title. (e) A state financial institution that establishes a branch in this State shall comply
  with the provisions of 11A V.S.A. chapter 15, 11 V.S.A. chapter 21, subchapter 10, except that 11A V.S.A. § 15.06 and 11 V.S.A. § 3136 shall not apply to any financial institution. Notwithstanding section 14103 of this title, a branch in this State of a state financial institution may engage in the activities
  permitted of a financial institution organized under the laws of this State, and may
  use the words “bank,” “banking association,” or “trust company” when engaged in such
  activities. The organizational name of such financial institution shall not be deceptively
  similar to any name in use by a person authorized to do business in this State. (f) A branch of a state financial institution located in this State shall comply with
  the laws of this State, including laws regarding community reinvestment, consumer
  protection, fair lending, and the establishment of intrastate branches, to the same
  extent as such laws apply to a branch in this State of a Vermont financial institution.
  A branch in this State of a state financial institution may conduct any activity that
  is permissible for a branch in this State of a Vermont financial institution, but
  may not conduct any activity that is not permissible for a branch in this State of
  a Vermont financial institution. If Vermont law requires a Vermont financial institution
  or any branch of such financial institution to obtain the Commissioner’s approval
  to engage in an activity, then a branch of a state financial institution shall obtain
  the Commissioner’s approval in the same manner as a Vermont financial institution. (g) A branch of a national financial institution located in this State shall comply with
  the laws of this State, including laws regarding community reinvestment, consumer
  protection, fair lending, and establishment of intrastate branches, to the same extent
  as such laws apply to a national financial institution whose principal place of business
  is in this State. (h) A national or state financial institution that maintains a branch in this State pursuant
  to this section may establish and operate one or more remote service units in this
  State, without the approval of the Commissioner. Any remote service unit established
  pursuant to this subsection shall be subject to the provisions of section 10302 of this title. Nothing in this section shall be deemed to authorize any other person or entity
  to establish or operate any remote service unit in this State that accepts deposits
  or that transfers funds between accounts. (Added 1999, No. 153 (Adj. Sess.), § 2, eff. Jan. 1, 2001; amended 2021, No. 105 (Adj. Sess.), § 300, eff. July 1, 2022.)