§ 921. General provisions Subject to the additional or varied requirements of this chapter, a corporation may be formed pursuant to the provisions of the general corporation law for the sole purpose of issuing scrip and to provide security therefor and to do all things necessary or convenient thereto.
§ 922. Certificate of public good The corporators shall file with the articles of association a certificate of the Commissioner of Financial Regulation that the formation of such corporation is in his or her opinion for the public good. No such corporation shall be formed unless such corporation is in his or her opinion for […]
§ 923. Definitions (a) “Scrip” as used in this chapter includes certificates having no fixed maturity, transferable by delivery, and payable to bearer in lawful currency when realized out of the assets pledged to secure such scrip. It does not include notes. (b) “Scrip corporation” includes any person or corporation lawfully issuing scrip.
§ 924. Examination; bonds A corporation formed under the provisions of this chapter shall be subject to examination by the Commissioner of Financial Regulation, hereinafter called the Commissioner, in the manner provided by 8 V.S.A. § 503. The Commissioner shall issue and from time to time alter and revoke rules and regulations governing the conduct […]
§ 925. Consent of Commissioner required A person or corporation shall not issue scrip or notes or certificates having no fixed maturity payable to bearer in currency or other scrip without the consent of the Commissioner. But nothing herein shall prevent the issuance and use of bills of exchange, notes, or checks, or town orders […]
§ 926. Redemption Scrip shall not be issued unless its redemption is secured by: (1) Short-term notes and obligations of towns, cities, or other municipalities lawfully issued to such scrip corporation as hereinafter provided. Scrip may be issued to the amount of the face of such notes or obligations, exclusive of interest. (2) The direct […]
§ 927. Limitation of amount of scrip issued The Commissioner may adopt rules governing and limiting the amount of scrip which may be issued against any one or all of the classes of security mentioned in section 926 of this title. (Amended 2015, No. 23, § 103.)
§ 928. Issuance; rights of holders; liquidations; actions A corporation authorized to issue scrip may issue the same to such persons, including corporations and municipalities, as assign to it securities enumerated in section 926 of this title, subject, however, to such limitations as are imposed by this chapter or any rules and regulations lawfully prescribed […]
§ 929. Redemption right If scrip is issued in return for bonds of this State or of the United States, the issuing corporation shall give a receipt for such bonds. Within the time named in such receipt and under such rules as the Commissioner may prescribe, the holder of such receipt may present the same […]
§ 930. Borrowing scrip by municipal corporations All municipal corporations whether incorporated by special act or under general law may borrow scrip from the issuing corporation upon their promissory notes payable both principal and interest in scrip within one year, but not to an amount in any one year greater than one-half the taxes voted […]
§ 931. Use of scrip in payment of taxes or wages Scrip issued under this chapter shall be received at the face value thereof in payment of taxes due to any municipality and may be issued by any municipality in the payment of wages and salaries hereafter accruing or, by agreement with the other contracting […]
§ 932. Indebtedness pledged to secure scrip All evidences of indebtedness pledged to secure scrip shall be delivered and held by the corporation issuing such scrip in trust to secure the redemption thereof in legal tender. All bank deposits securing scrip shall be assigned to such issuing corporation and by it held in trust as […]
§ 933. Security and redemption funds Portions of bank deposits assigned to the scrip corporation shall be transferred on the books of the bank or trust company to such corporation and each portion so transferred shall be divided into two parts: a one-third part and a two-thirds part. The one-third part, hereinafter called the trust […]
§ 934. Bank deposits left with bank Bank deposits assigned under the provisions of this chapter in consideration and as security for scrip, except as otherwise directed by the Commissioner, shall remain on deposit in the same bank where originally deposited, but with the Commissioner’s consent, may be transferred to deposits classified as new savings […]
§ 935. Redemption; action against corporation limited At such time or times as he or she may think proper, the Commissioner may require such scrip corporation to redeem in lawful currency the scrip issued by it. Such order may require such scrip to be redeemed all at one time or part only at one time, […]
§ 936. Surplus monies belong to State Any monies remaining in the hands of a scrip corporation formed under this chapter, after all scrip entitled to payment has been redeemed, shall become the property of the State.
§ 937. Enjoining issuance of scrip On complaint brought by the Commissioner in the Superior Court within and for the county of Washington, a person issuing scrip in violation of this chapter shall be enjoined from issuing further scrip and required to redeem forthwith scrip already issued, and the terms of this chapter and rules […]
§ 938. Penalties A person violating a provision of this chapter or a regulation hereunder shall be fined not more than $1,000.00 or imprisoned not more than one year, or both.
