Download this document in MS Word format

AutoFill Template


Introduced by   Senator Miller of Chittenden District and Senator Ayer of Addison District

Referred to Committee on


Subject:  Banking and insurance; licensed lenders; exceptions

Statement of purpose:  This bill proposes to allow angel investors to provide small Vermont-owned and -based businesses with necessary growth capital without requiring them to be licensed as licensed lenders.


It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1.  8 V.S.A. § 2201(c) is amended to read:

(c)  No license shall be required of:

* * *

(11)  nonprofit institutions of higher education, exempt from taxation under Section 501(c)(3) of the Internal Revenue Code, that make residential mortgage loans to their employees from their own funds; or

(12)  a seller who, pursuant to subdivision 2355(f)(1)(D) of Title 9, includes the amount paid or to be paid by the seller to discharge a security interest, lien interest, or lease interest on the traded-in motor vehicle in a motor vehicle retail installment sales contract, provided that the contract is purchased, assigned, or otherwise acquired by a sales finance company licensed pursuant to this title to purchase motor vehicle retail installment sales contracts or a bank;

(13)  a lender who is lending money to a business of which the lender is also an owner; or

(14)  a lender who is lending money via a debt instrument with equity conversion features whereby the debt can be converted at the option of the lender into equity in the borrower at a future date.

Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont