Vermont State Regulator to Repeal Biz Lending Reg Posted by Association of Vermont Credit Unions on 9:53 AM

Vermont's Department of Financial Regulation has officially posted its notice of intended repeal of its Credit Union Member Business Loans regulation (Regulation B-2012-01).  The state's member business loan regulation, drafted some years ago, was never approved by the National Credit Union Administration (12 CFR §723.20) and is therefore, unenforceable.

The regulator goes on to say that state chartered credit unions making member business loans will still be subject to the NCUA Member Business Loan regulation, 12 CFR Part 723, rather than the Department's Regulation B-2012-01.  In spite of the intended regulatory repeal, Vermont state chartered credit unions will still need to obtain the state regulator's prior written approval before engaging in member business loan activities (8 V.S.A. §32402).

A public hearing on the proposed repeal is scheduled for 10 AM on 9/27/2016 at the Department of Financial Regulation, 89 Main Street, Montpelier, VT.  The contact person for the proposal is Sue Clark at 802-828-3307.

The deadline for comments to be submitted to the regulator on the proposal is 10/5/2016.