SUPERVISION OF BANKS

M.G.L. pt. Part I, tit. Title XXII, ch. c. 167

in effect

M.G.L. c. 167, § 1 Definitions

c. 167, § 1. Definitions Section 1. As used in this chapter, the following words shall, unless the context otherwise requires, have the following meanings:— ''Bank'', any association or corporation chartered by the commonwealth under chapter 168, 170, 171 or 172, or an individual, association, partnership or corporation incorporated or doing a banking business in the commonwealth subject to the supervision of the commissioner. ''Commissioner'', the commissioner of banks. ''Cooperative bank'', an association or corporation chartered pursuant to chapter 170. ''Credit union'', an association or corporation chartered pursuant to chapter 171. ''Federal bank'', a national banking association, savings and loan association or savings bank that exists by authority of the United States, the main office of which is located in the commonwealth. ''Federal branch'', a branch in the commonwealth of any out-of-state federal bank. ''Foreign bank'', an association or corporation authorized to do a banking business the main office of which is located outside the commonwealth and which exists by authority of a country other than the United States. ''Internet bank'', a bank, federal bank, foreign bank or out-of-state bank that provides its services exclusively or primarily through the internet. ''Limited purpose trust company'', an association or corporation chartered pursuant to section 9A of chapter 172. ''Massachusetts bank'', a bank, other than an association or corporation chartered pursuant to chapter 171. ''Massachusetts branch'', a branch in the commonwealth of an out-of-state bank. ''Out-of-state bank'', an association or corporation authorized to do a banking business, the main office of which is located outside the commonwealth and which exists by authority of a state of the United States except the commonwealth. ''Out-of-state branch'', a branch of a Massachusetts bank located outside the commonwealth. ''Out-of-state federal bank'', a national banking association, savings and loan association or savings bank that exists by authority of the United States, the main office of which is located outside the commonwealth. ''Savings bank'', an association or corporation chartered pursuant to chapter 168. ''State'', a state, commonwealth or territory of the United States, the District of Columbia, or a foreign country. ''Trust company'', an association or corporation chartered pursuant to chapter 172.

M.G.L. c. 167, § 1A Rules and regulations

c. 167, § 1A. Rules and regulations Section 1A. The commissioner shall promulgate rules and regulations establishing minimum standards relative to the security and protection of credit unions under the commissioner's supervision, both for the benefit of employees as well as the general public, including the requirement for the installation, maintenance and operation of security devices and procedures and to assist in the identification and apprehension of criminals. Said rules and regulations shall fix the time limit within which each such credit union shall comply with the standards so established and may require the submission, in writing, of periodic reports and other information necessary to ensure compliance with such rules and regulations. A credit union which violates any rule or regulation promulgated pursuant to this section shall forfeit to the commonwealth $100 for each day during which such violation continues, to be recovered by an information in equity in the name of the attorney general at the request of the commissioner, commenced in the supreme judicial court for Suffolk county.

M.G.L. c. 167, § 1B Repealed, 2014, 482, Sec. 13

M.G.L. c. 167, § 2 Examination of banks

c. 167, § 2. Examination of banks Section 2. (a)(1) The commissioner, either personally or by his examiners or such other assistants that he designates, shall, at least once in each calendar year, or at least once in an 18–month period in the case of a bank which is well capitalized as defined in 12 U.S.C. § 1831(o) and the regulations adopted under that section, or as authorized under subsection (d), make a thorough examination of the books, securities, cash, assets and liabilities and ascertain the condition of all banks under the commissioner's supervision, including out-of-state branches, the ability of each bank to fulfill its obligations and whether it has complied with all applicable laws. The commissioner may also, whenever he considers it expedient, make or cause to be made, at the expense of the bank, any further examinations or audits by his examiners or by certified public accountants or public accountants approved by him and subject to his direction and not connected with the bank. The commissioner may also, whenever he considers it expedient, appoint individuals certified as real estate appraisers by the Society of Real Estate Appraisers or a similar successor society to make, at the expense of the bank, appraisals of real estate securing loans of the bank. When the commissioner appoints an appraiser, he shall so notify the bank of the date on which he has requested submission of the appraisal report to him. The bank may then appoint an appraiser who may submit the report of his appraisal to the commissioner on the same date. (2) The commissioner or the person making the examination shall, at the time of the examination, have free access to the vaults, investments, cash, books and papers. In making an examination, the commissioner shall have access to the vaults, books and papers of each of the bank's affiliates and may make any examination of the affairs of its affiliates that may be necessary to disclose fully the relations between the bank and its affiliates and the effect of this relationship upon the affairs of the bank. (b)(1) The commissioner shall preserve a full record of an examination of a bank, including a statement of its condition. All records of investigations and reports of examinations by the commissioner, including workpapers, information derived from the reports or responses to the reports and any copies of the records in the possession of a bank under the supervision of the commissioner, shall be confidential and privileged communications, shall not be subject to subpoena and shall not be a public record under clause Twenty-sixth of section 7 of chapter 4. For the purposes of this paragraph, records of investigations and reports of examinations shall include records of investigation and reports of examinations conducted by a financial regulatory agency of the federal government or of a state or a foreign government which are considered confidential by the agency or foreign government and which are in possession of the commissioner. In a proceeding before a court, the court may issue a protective order to seal the record protecting the confidentiality of these records, other than a record on file with the court or filed in connection with the court proceeding, and the court may exclude the public from any portion of the proceeding at which the record may be disclosed. (2) Copies of reports of these examinations shall be furnished to the bank for its use only and shall not be exhibited to any other person, organization or agency without the prior written approval of the commissioner. The commissioner may, in his discretion, furnish to the Chief National Bank Examiner, the Federal Reserve Bank of Boston, the Federal Deposit Insurance Corporation, the Depositors Insurance Fund, the Cooperative Central Bank, the Massachusetts Credit Union Share Insurance Corporation, the National Credit Union Administration, the federal Bureau of Consumer Financial Protection or any successors to these entities, any other bank regulatory or law enforcement agency, or the banking departments of other states or foreign countries, any information, reports and statements relating to the institutions under his supervision that he considers appropriate. (c)(1) An annual charge shall be paid by each bank under the supervision of the commissioner which shall be based on the total amount of assets held by each bank as stated on the most recent report to the commissioner filed before December 31 of the preceding year. The charge assessed to all such banks shall be determined based on a calculation of the amount that would be sufficient to pay for the operations of the division of banks in the amount set forth in the division's appropriation for the fiscal year, and each bank shall pay the charge within 30 days after receiving notice from the commissioner of the charge assessed. The notice shall be issued annually by the commissioner on January 31. The charge shall be determined annually by the secretary of administration and finance under section 3B of chapter 7, with the assistance of the commissioner, and may contain such classifications and differentiations based upon the financial condition of such banks as he considers appropriate. Classifications of individual institutions shall be exempt from section 10 of chapter 66. The annual charge shall be paid, on a pro rata basis, by the successor of any bank which is merged into, or whose assets are purchased and its deposit liabilities are assumed by, a federally-chartered or out-of-state bank during the preceding year. No annual charge shall be collected from a bank which has been in operation for 1 year or less. The aggregate amount of charges assessed by the division of banks for a fiscal year under this section and other applicable fee provisions shall not be less than the aggregate amount of revenues for the fiscal year as estimated for the division of banks or its successor agency in section 1B of the general appropriation act for that fiscal year. (2) If the assessment in a fiscal year by the division of banks is insufficient to pay for the operations of the division of banks in the amount set out in its annual appropriation and any additional appropriations for that fiscal year, the division of banks shall assess the remaining amount upon all depository and nondepository financial institutions under the supervision of the division. This assessment shall be determined by regulations of the secretary of administration and finance under section 3B of chapter 7, with the assistance of the commissioner, and may contain such classifications and differentiations based upon the regulatory condition of each institution as the commissioner considers necessary. The classifications of individual institutions shall be exempt from section 10 of chapter 66. The assessment shall be paid within 30 days after notice from the commissioner of the amount due. (3) The expense of the examination of the affairs of an affiliate of a bank, including all monies expended by the commonwealth for personal services and the proportion of the general overhead of the division of banks and loan agencies, including travel, hotel and meal allowances and other costs that are determined by the commissioner to be attributable to the examination or audit, shall be paid by the affiliate examined. For the purposes of this section, ''affiliate'' shall include holding company affiliates, but shall not include any person or corporation the control of which is held by a bank when acting in a fiduciary capacity. (d) Notwithstanding any general or special law to the contrary, the commissioner may establish a tiered regulatory structure for the supervision and examination of savings banks, co-operative banks and trust companies. The criteria for the tiered regulatory structure may include, but shall not be limited to, the following: asset size; level of capital; balance sheet composition; the rating under the Uniform Financial Institutions Rating System, so-called CAMELS rating; record of performance under the community reinvestment act in section 14; compliance with laws and regulations; and such other factors as the commissioner may determine. In establishing the tiered regulatory structure the commissioner shall seek to effect cost reductions and reduce the regulatory burden for savings banks, co-operative banks and trust companies. The commissioner may promulgate rules and regulations necessary to carry out this subsection.

M.G.L. c. 167, § 2A Definitions applicable to Secs. 2A to 2G; unfair practices involving consumer transactions; rules and regulations

c. 167, § 2A. Definitions applicable to Secs. 2A to 2G; unfair practices involving consumer transactions; rules and regulations Section 2A. For the purposes of this section and sections two B to two G, inclusive, the following words shall, unless the context clearly indicates otherwise, have the following meanings:— ''Bank'', any bank, any Massachusetts or out-of-state branch, any association or corporation chartered and authorized to do a banking business by a state of the United States other than the commonwealth, by the District of Columbia, the Commonwealth of Puerto Rico, any territory or possession of the United States or by a country other than the United States, or a national banking association, federal savings and loan association, federal savings bank or federal credit union, which has its main office located in the commonwealth or in any other jurisdiction named herein, or any internet bank which is either located in the commonwealth, has its main office located in the commonwealth, or has depositors or borrowers which are located in the commonwealth. ''Consumer transaction'', a transaction between a bank and a natural person, in which the money, property or services are primarily for personal, family or household purposes. No bank shall engage in this commonwealth in unfair methods of competition or unfair or deceptive acts or practices involving consumer transactions. The commissioner shall promulgate rules and regulations defining those acts and practices that shall be deemed to constitute unfair methods of competition or unfair or deceptive acts or practices involving consumer transactions. Such rules and regulations shall not be inconsistent with federal and state consumer protection rules, regulations and decisions, insofar as practicable; provided, however, that the commissioner may make such adjustments and exceptions as in his judgment are necessary to carry out the purposes of this section or to facilitate compliance therewith. Except for emergency regulations adopted pursuant to section two of chapter thirty A, any regulation, as defined in section one of said chapter thirty A, or any amendment or repeal of any such regulation adopted by the commissioner pursuant to this section, shall, after compliance with all applicable provisions of said chapter thirty A, except section five, be submitted to the general court. Said commissioner shall file the proposed regulation, amendment or repeal with the clerk of the house of representatives, together with a statement that the pertinent provisions of said chapter thirty A, except section five have been complied with. The clerk of the house of representatives, with the approval of the president of the senate and the speaker of the house of representatives, shall refer such regulations to the joint committee on banks and banking. Within thirty days after such referral, said committee may hold a public hearing on the regulations and shall issue a report to said commissioner. Said report shall contain any proposed changes to the regulations voted upon by the committee. The commissioner shall review said report and shall adopt final regulations as deemed appropriate in view of said report and shall file with the chairmen of said banks and banking committee its final regulations. If the final regulations do not contain the changes proposed by the committee, the commissioner shall send a letter to the committee accompanying the final regulations stating the reasons why such proposed changes were not adopted. Not earlier than forty-five days after the filing of such letter and final regulations with the said committee, said commissioner shall file the final regulations with the state secretary as provided in section five of said chapter thirty A and said regulations shall thereupon take effect. If no such proposed changes to the regulations are made to the commissioner within sixty days of the initial filing of the proposed regulation or any amendment or a repeal of such regulation with the clerk of the house of representatives, the commissioner may file the final regulations with the state secretary as provided in section five of said chapter thirty A and said regulations shall thereupon take effect.

M.G.L. c. 167, § 2B Investigation of unfair practices

c. 167, § 2B. Investigation of unfair practices Section 2B. The commissioner shall have the power to examine and investigate into the affairs of every bank engaged in consumer transactions in this commonwealth in order to determine whether such bank has been or is engaged in any unfair method of competition or in any unfair or deceptive act or practice as established by the commissioner by regulation in accordance with the provisions of section two A.

M.G.L. c. 167, § 2C Proceedings regarding unfair practices; notice; hearing

c. 167, § 2C. Proceedings regarding unfair practices; notice; hearing Section 2C. Whenever the commissioner shall have reason to believe that any such bank has engaged or is engaging in this commonwealth in any such unfair method of competition or unfair or deceptive act or practice and that a proceeding by him in respect thereto would be in the interest of the public, he shall issue and serve upon such bank a statement of the charges in that respect and a notice of a hearing thereon to be held at a time and place fixed in the notice, which shall be not less than twenty-one days after the date of the service thereof. At the time and place fixed for such hearing, such bank shall have an opportunity to be heard and to show cause why an order should not be made by the commissioner requiring such bank to cease and desist from the acts, methods or practices so complained of. The commissioner, upon such hearing, may administer oaths, examine and cross examine witnesses, receive oral and documentary evidence, and shall have the power to summons witnesses, compel their attendance, and require the production of books, papers, records, correspondence or other documents which he deems relevant to the inquiry. The commissioner upon such hearing shall cause to be made a stenographic record of all the evidence and all the proceedings had at such hearing. In the case of a refusal by any bank to comply with any summons issued hereunder or to testify with respect to any matter relative to the subject matter of such hearing, the superior court of Suffolk county or the county in which the principal office of the bank is located, upon application of the commissioner, may issue an order requiring such bank to comply with such summons and to so testify. Any failure to obey any such order of the court may be punished by the court as contempt thereof. Statements of charges, notices, orders and other processes of the commissioner under this section may be served by anyone duly authorized by the commissioner, either in the manner provided by law for service of process in civil actions, or by registering and mailing a copy thereof to the bank affected by such statement, notice, order or other process at its principal office. The verified return by the person so serving such statement, notice, order or other process, setting forth the manner of such service, shall be proof of the same, and the return postcard receipt for such statement, notice, order or other process, registered and mailed as aforesaid, shall be proof of the service of the same.

M.G.L. c. 167, § 2D Unfair practices; findings; cease and desist orders; penalty; modification of order

c. 167, § 2D. Unfair practices; findings; cease and desist orders; penalty; modification of order Section 2D. If, after such hearing, the commissioner shall determine that the bank charged has engaged in an unfair or deceptive act or practice, he shall reduce his findings to writing and shall issue and cause to be served upon the bank charged with the violation a copy of such findings and an order requiring such bank to cease and desist from engaging in such method of competition, act or practice. In addition, any bank which commits such an act or practice may be punished by a fine of not more than one thousand dollars for each and every such act or practice. Until the expiration of the time allowed under section two E for filing a petition for review, if no such petition has been filed within such time or, if a petition has been filed within such time, then until the transcript of the record in the proceeding has been filed in the supreme judicial court, as hereinafter provided, the commissioner may at any time, upon such notice and in such manner as he shall deem proper, modify or set aside, in whole or in part, any order issued by him under this section. Upon the expiration of the time allowed for filing such a petition for review and in the event that no such petition has been duly filed, the commissioner may at any time, after notice and opportunity for hearing, reopen and alter, modify or set aside, in whole or in part, any order issued by him under this section whenever in his opinion conditions of fact or of law have so changed as to require such action or if the public interest shall so require.

M.G.L. c. 167, § 2E Review of cease and desist orders; civil liability

c. 167, § 2E. Review of cease and desist orders; civil liability Section 2E. Any bank required by an order of the commissioner under section two D to cease and desist from engaging in any unfair method of competition or any unfair or deceptive act or practice may obtain a review of such order by filing in the supreme judicial court, within thirty days from the date of the service of such order, a written petition praying that the order of the commissioner be set aside. A copy of such petition shall be forthwith served upon the commissioner and thereupon, the commissioner forthwith shall certify and file in such court a transcript of the entire record in the proceeding, including all the evidence taken and the report and order of the commissioner. Upon such filing of the petition and transcript, such court shall have jurisdiction of the proceeding and of the questions determined therein, shall determine whether the filing of such petition shall operate as a stay of such order of the commissioner and shall have the power to make and enter upon the pleadings, evidence and proceedings set forth in such transcript a decree modifying, affirming or reversing the order of the commissioner, in whole or in part. The findings of the commissioner as to the facts, if supported by a clear preponderance of the evidence, shall be conclusive. To the extent that the order of the commissioner is affirmed, the court shall thereupon issue its own order commanding obedience to the terms of such order of the commissioner. If either party shall apply to the court for leave to adduce additional evidence and shall show to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for the failure to adduce such evidence in the proceedings before the commissioner, the court may order such additional evidence to be taken before the commissioner and to be adduced upon the hearing in such manner and upon such terms and conditions as the court may deem proper. The commissioner may modify his findings of fact or make new findings by reason of the additional evidence so taken and he shall file such modified or new findings, which, if supported by a clear preponderance of the evidence, shall be conclusive, and his recommendation, if any, for the modification or setting aside of his original order, with the return of such additional evidence. A cease and desist order issued by the commissioner under section two D shall become final: (1) Upon the expiration of the time allowed for filing a petition for review if no such petition has been duly filed within such time; except that the commissioner may thereafter modify or set aside his order to the extent provided in section two D; or (2) Upon the final decision of the court if the court directs that the order of the commissioner be affirmed or the petition for review be dismissed. No order of the commissioner under this section, or section two D, or order of a court to enforce the same shall in any way relieve or absolve any bank affected by such order from any liability under any other laws of the commonwealth.

M.G.L. c. 167, § 2F Violations of cease and desist orders; penalties

c. 167, § 2F. Violations of cease and desist orders; penalties Section 2F. Any bank which violates a cease and desist order of the commissioner under section two D after it has become final, and while such order is in effect, shall forfeit and pay to the commonwealth a sum not to exceed ten thousand dollars for each violation, which sum may be recovered in a civil action. Upon order of the commissioner, such bank shall also be subject to the suspension or revocation of its charter or such other relief as is reasonable and appropriate.

M.G.L. c. 167, § 2G Penalties for unfair practices; enforcement

c. 167, § 2G. Penalties for unfair practices; enforcement Section 2G. The powers vested in the commissioner by sections two A to two F, inclusive, shall be in addition to any other powers to enforce any penalties, fines or forfeitures authorized by law with respect to the methods, acts and practices which may be declared by the commissioner hereunder to be unfair or deceptive.

M.G.L. c. 167, § 2H Notice to commissioner of activity or investment of savings bank, co-operative bank or trust company; waiver or extension of notice period

c. 167, § 2H. Notice to commissioner of activity or investment of savings bank, co-operative bank or trust company; waiver or extension of notice period Section 2H. Notwithstanding any general or special law to the contrary, a savings bank, co-operative bank or a trust company may engage in any activity or invest in any products or services which are related or incidental to banking, are not prohibited by law and do not pose a substantial risk to the safety and soundness of the savings bank, co-operative bank or a trust company with 30 days notice to the commissioner. Upon the expiration of the notice period, the bank may engage in any such activity or invest in any such products or services. At the time of the notice or at any time the notice is pending, the bank may request that the commissioner waive the remaining notice period. During the notice period, the commissioner may extend the notice period for 30 days for additional review. During such extended period, the commissioner may: make no comment, which would allow the bank to proceed at the end of the period; subject the bank's activity or investment to such terms and conditions as the commissioner may impose; or deny the bank to proceed with any such activity or investment.

M.G.L. c. 167, § 2I Compliance with federal laws and regulations

c. 167, § 2I. Compliance with federal laws and regulations Section 2I. A bank shall comply with the following federal laws and federal regulations subject to the terms and conditions imposed by this section: (1) the federal Expedited Funds Availability Act, 12 U.S.C. section 4001 et seq., and regulations promulgated thereunder; (2) the federal Fair Credit Billing Act, 15 U.S.C. sections 1666 to 1666j, inclusive, and the regulations promulgated thereunder; (3) the federal Electronic Fund Transfer Act, 15 U.S.C. section 1693 et seq., and the regulations promulgated thereunder; provided, however, that the maximum liability of a consumer under 15 U.S.C. section 1693g shall be limited to $50; (4) a bank shall comply with the regulations of the federal banking agency, of which it is a member or by which its deposits or accounts are insured, that govern the manner of safeguarding the bank's monies and securities and the deposit of its securities or substantially the same subject matter; (5) a bank shall comply with 12 CFR Part 326, which governs the minimum security devices and procedures and Bank Secrecy Act compliance, and other applicable regulations of a federal banking agency of which the bank is a member or by which its deposits or accounts are insured which regulations govern substantially the same subject matter; and (6) a bank shall comply with 12 CFR Part 215, which governs loans to executive officers, directors or principal shareholders of a bank, and federal regulations of a federal banking agency of which it is a member or by which its deposits or accounts are insured which regulations govern substantially the same subject matter. Notwithstanding this section, the commissioner shall retain jurisdiction over a bank to examine, supervise, take enforcement action against and assist consumers in matters relative to compliance with the federal laws or federal regulations enumerated in clauses (1) through (6), inclusive. Nothing in this section shall affect the commissioner's jurisdiction relative to other federal laws or federal regulations. For the purposes of this section, a bank shall mean a savings bank, a co-operative bank or a trust company. A federal bank, a foreign bank and an out-of-state bank shall comply with clause (3).

M.G.L. c. 167, § 2J Confidentiality of information provided in applications filed with commissioner

c. 167, § 2J. Confidentiality of information provided in applications filed with commissioner Section 2J. A savings bank, co-operative bank or trust company, federal bank, out-of-state bank, foreign bank or limited purpose trust company may request that specific information in any application filed with the commissioner be treated as confidential. The following information shall be eligible for confidential treatment: (i) personal information, the release of which would constitute a clearly unwarranted invasion of privacy; (ii) commercial or financial information, the disclosure of which could result in substantial competitive harm to the submitter; and (iii) information, the disclosure of which could seriously affect the financial condition of any such bank. The commissioner may determine that certain information should be treated as confidential and withhold that information from the public file. If any such bank requests confidential treatment for information that the commissioner determines is not eligible for confidential treatment, the commissioner may include that information in the public file after notifying the bank.

M.G.L. c. 167, § 3 Meetings of board of directors or board of trustees of bank; reports on bank examinations; records; certificates

c. 167, § 3. Meetings of board of directors or board of trustees of bank; reports on bank examinations; records; certificates Section 3. Whenever the commissioner deems it expedient, he may cause a meeting of the board of directors or board of trustees of a bank to be held in such manner and at such time and place as he may direct. Any report of an examination of the affairs of such bank under section two, any conclusions drawn therefrom by the commissioner and any directions or recommendations made by him relative thereto and any other matters concerning the operation or condition of such bank, may be presented to such board by the commissioner in person or by such assistant as he may designate, and the person having custody of the records of such bank, hereinafter referred to as the recording officer, shall forthwith incorporate such directions and recommendations in the records of such meeting. Each director or trustee of such bank who is present at such meeting shall forthwith sign a certificate or other acknowledgment in such form as may be prescribed by the commissioner, that he has heard the directions and recommendations of the commissioner or read the records containing the same. The recording officer of such bank shall, within seven days after the date of such meeting, transmit to the commissioner the said certificates or other forms of acknowledgment, signed as aforesaid, together with an attested copy of the records of such meeting. The recording officer shall also, within such period, mail, by registered mail, an attested copy of the records of such meeting and a blank form for said certificate or other form of acknowledgment, to each director or trustee, unless excused by the commissioner for physical or mental incapacity or absence from the commonwealth, who, in turn, shall sign and return to the recording officer such certificate or other form of acknowledgment. The commissioner may make rules and regulations relative to the filing of such certificates or other form of acknowledgment by absent directors or trustees and relative to their transmission to him. The commissioner may require a monthly report from the recording officer relative to the execution of and compliance with the directions, recommendations or orders set forth at such meeting. The superior court shall have jurisdiction in equity to enforce any lawful order made by the commissioner under the provisions of this section upon application by said commissioner.

M.G.L. c. 167, § 4 Summoning and examination of bank officers

c. 167, § 4. Summoning and examination of bank officers Section 4. The commissioner, or his examiners or such others of his assistants as he may designate, may summon the trustees, officers or agents of a bank, or any other witnesses, and examine them relative to the affairs, transactions and condition of the bank, and, for that purpose, may administer oaths. Whoever, without justifiable cause, refuses to appear and testify when so required or obstructs the person making such examination in the performance of his duty, shall be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year.

M.G.L. c. 167, § 5 Request for bank examination

c. 167, § 5. Request for bank examination Section 5. Upon written application on oath to the commissioner by five or more officers, trustees, creditors or depositors of a bank setting forth their interest and the reasons for making an examination and requesting him to examine such bank, he shall forthwith make a full investigation of its affairs in the manner provided in the preceding sections.

M.G.L. c. 167, § 6 Manner and form of books and accounts; manner of safeguard and deposit of money and securities

c. 167, § 6. Manner and form of books and accounts; manner of safeguard and deposit of money and securities Section 6. The commissioner may prescribe the manner and form of keeping the books and accounts of a bank and the extent to which they shall be audited. For a credit union, the commissioner may prescribe the manner of safeguarding its money and securities and may promulgate regulations under which a credit union may deposit its securities with savings banks, co-operative banks, trust companies or banking associations for safekeeping.

M.G.L. c. 167, § 6A Copies of agreements concerning Federal Reserve regulations and operating letters, clearing house rules, etc.; rules and regulations

c. 167, § 6A. Copies of agreements concerning Federal Reserve regulations and operating letters, clearing house rules, etc.; rules and regulations Section 6A. Any bank, as defined in section one, or a national banking association, federal savings and loan association or federal credit union authorized to do business in the commonwealth, shall make available copies of all agreements as referred to in subsection (2) of 4–103 of chapter one hundred and six. The commissioner shall establish such rules and regulations as he deems necessary to carry out the purposes of this section.

M.G.L. c. 167, § 7 Statements and reports required by commissioner or by law

c. 167, § 7. Statements and reports required by commissioner or by law Section 7. In addition to the reports required by law, banks shall make such other statements and reports to the commissioner as he may require. The commissioner shall furnish blank forms for all statements or reports required to be made to him. Any bank neglecting to make the returns required by law or by the commissioner, or failing to amend such report within fifteen days after notice from him, shall, unless such neglect or failure is due to justifiable cause and not due to wilful neglect, forfeit to the commonwealth, five dollars for each day during which such neglect continues, to be recovered by an information in equity in the name of the attorney general at the relation of the commissioner, brought in the supreme judicial court for Suffolk county.

M.G.L. c. 167, § 8 Failure to make or amend return, statement or report

c. 167, § 8. Failure to make or amend return, statement or report Section 8. An officer of any bank who, for fifteen days after notice by the commissioner, fails to make any return, statement or report required by law or by the commissioner, or fails to amend such a return, statement or report if lawfully required by the commissioner, shall be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both.

M.G.L. c. 167, § 9 Destruction or disposal of records, etc.; payment of proceeds

c. 167, § 9. Destruction or disposal of records, etc.; payment of proceeds Section 9. Returns to the commissioner under section twenty-two A of chapter one hundred and seventy-two, records of examinations of banks made under section two of this chapter, certificates or other form of acknowledgment filed with the commissioner under section three of this chapter, reports made under section twenty-six of chapter one hundred and sixty-eight, and reports made under section eighteen of chapter one hundred and seventy, may, after six years from the date of their receipt, be destroyed or disposed of by order of their lawful custodian with the approval of the commissioner, and any proceeds received in the course of their disposal shall be paid to the commonwealth; provided, however, that if the commissioner shall have received actual notice, in writing, of any pending judicial proceeding in which such returns, records, certificates or other form of acknowledgment or reports are to be offered as evidence thereat, such returns, records, certificates, or other form of acknowledgment or reports shall not be destroyed or disposed of until after the final determination of such judicial proceeding.

M.G.L. c. 167, § 10 Reports of fraud, embezzlement or misconduct by bank officers or employees

c. 167, § 10. Reports of fraud, embezzlement or misconduct by bank officers or employees Section 10. Any violation of sections fifty-two to fifty-three A, inclusive, of chapter two hundred and sixty-six shall be reported, in writing, within a reasonable time after discovery, to the commissioner and to the district attorney of the district in which the bank does business, by the president and treasurer of the bank in, or with respect to which, such violation occurs or, in the absence of either of said officers, by the officer performing the duties of such office.

M.G.L. c. 167, § 11 Shortages in funds; reports; fine

c. 167, § 11. Shortages in funds; reports; fine Section 11. Any shortage of five thousand dollars or more in a bank shall, within forty-eight hours of discovery thereof by an officer of the bank in or with respect to which such shortage occurs, be reported in writing to the commissioner by the president and treasurer of the bank in which the shortage occurs, or in the absence of either of said officers by the officer performing the duties of such office. Any person who wilfully violates the provisions of this section or section ten shall be guilty of a misdemeanor and shall be punished by a fine of not less than two hundred or more than one thousand dollars.

M.G.L. c. 167, § 12 Misconduct by bank officers; suspension; removal

c. 167, § 12. Misconduct by bank officers; suspension; removal Section 12. If, after inquiry, the commissioner finds that any officer of any bank, including a director or trustee thereof, has violated any law related to such bank or has conducted the business of such bank in an unsafe or unsound manner or has used his official position in a manner contrary to the interests of such bank or its depositors or has been negligent in the performance of his duties, the commissioner may, by written notice to such officer detailing his reasons therefor, forthwith order his suspension. Any suspension so ordered shall become effective upon service of such notice upon the official involved and shall remain in effect until removed by the commissioner. The commissioner may also, in his discretion, send a statement of facts upon which his conclusion is based relative to the conduct of the official involved, to the executive officer and each director or trustee of the bank affected. Within such reasonable time as the commissioner may direct, a special meeting of the directors or trustees of the bank shall be held with respect to the statement of the commissioner. If, in the opinion of the commissioner, appropriate action is not taken to protect the interest of the bank or its depositors, or if such conduct is continued, the commissioner shall cause notice to be served on such officer, director or trustee, to appear and show cause why he should not be removed from office. If, after granting the officer, director or trustee so summonsed a reasonable opportunity to be heard, the commissioner finds that he has been guilty of any such delinquency, the commissioner, in his discretion, may order that such officer, director or trustee be removed from office and from participation in the management of such bank. In either of the foregoing instances, a copy of any such notice shall be sent by registered mail to each officer, director or trustee of the bank affected. A copy of any such notice shall be sent to a board composed of the state treasurer, the attorney general and the commissioner of revenue. The members of the board, or a duly authorized representative, shall be present at any appearance of such officer, director or trustee. Any decision by the commissioner to suspend or remove such officer, director or trustee may be reversed by a decision of a majority of the members of the board made within five business days after the commissioner's decision; provided, however, that in the absence of any such reversal, any such decision of the commissioner shall be given full force and effect. Copies of such order shall be served upon the delinquent officer and upon such bank, whereupon such officer shall cease to be an officer of such bank and shall not participate in any way, in the management thereof; provided, however, that any such order, and the evidence and findings of fact upon which it is based, shall not be made public or disclosed to anyone except the delinquent officer and the other officers, directors or trustees of such bank, other than in the course of any judicial proceeding under this section. The commissioner shall thereupon transmit to the attorney general a transcript of the evidence and finding, and the attorney general shall institute such proceedings as he may deem necessary and proper. Any person suspended from office as herein provided who, during the term of his suspension, participates in any manner in the management of any bank in the commonwealth shall be punished by a fine of not more than one thousand dollars or one year in jail, or both. Any person removed from office as herein provided who thereafter participates in any manner in the management of any bank in the commonwealth shall be punished by imprisonment in the state prison for not more than five years or by a fine of not more than five thousand dollars, or both. Within twenty days after the service of an order of suspension or removal under this section upon the person removed thereby, such person may file a petition in the supreme judicial court for Suffolk county for a review of such suspension or removal but, pending such review, the order shall remain in full force and effect. The court shall have jurisdiction in equity to annul, reverse or affirm any such order, shall review all questions in accordance with the standards for review provided in paragraph (8) of section fourteen of chapter thirty A and may make any appropriate order or decree. The decision of the court shall be final and conclusive.

M.G.L. c. 167, § 12A Criminal charges against bank officers; suspension or removal from office

c. 167, § 12A. Criminal charges against bank officers; suspension or removal from office Section 12A. Whenever any officer of a bank, including a director or trustee, or other person participating in the conduct of the affairs of such bank, is charged in any information, indictment or complaint with the commission or participation in a crime involving a breach of trust which is punishable by imprisonment for a term exceeding one year under state or federal law, the commissioner may, if in his opinion continued service or participation by the individual may pose a threat to the interests of the bank's depositors or may threaten to impair public confidence in the bank, by written notice served upon such individual, suspend him from office or prohibit him from further participation in any manner in the conduct of the affairs of the bank. A copy of such notice shall be served upon the bank. Such suspension or prohibition shall remain in effect until such information, indictment or complaint is finally disposed of or until terminated by the commissioner. In the event that a judgment of conviction with respect to such crime is entered against such officer or other person, and at such time as such judgment is not subject to further appellate review, the commissioner may, if he deems that continued service or participation by the individual may pose a threat to the interest of the bank's depositors or may threaten to impair public confidence in the bank, issue and serve upon such officer or other person, an order removing him from office or prohibiting him from further participation in any manner in the conduct of the affairs of the bank without the consent of the commissioner. A copy of such order shall also be served upon such bank whereupon such officer shall cease to be an officer of such bank. A finding of not guilty or other disposition of the charge shall not preclude the commissioner from thereafter instituting proceedings to remove such officer or other person from office or to prohibit further participation in bank affairs, pursuant to section twelve.

M.G.L. c. 167, § 13 Annual reports

c. 167, § 13. Annual reports Section 13. All annual reports submitted to the commissioner by banks shall be on a form which he shall prescribe. Each report shall contain a declaration signed by the president, or by an officer designated by the board of directors or trustees of the bank to make the declaration, that the report is true and correct to the best of his knowledge and belief. The correctness of the report shall be attested by the signatures of at least 3 directors or trustees of the bank, other than the officer making the declaration, with the declaration that the report has been examined by them and to the best of their knowledge and belief is true and correct. Annually, on or before July 1, the commissioner shall make a report to the general court containing aggregate statements of the condition, as of the preceding December, of all savings banks, co-operative banks, savings and loan associations, credit unions, trust companies, and, private, foreign, or other banks under his supervision, with other information relative to the affairs of the banks as the commissioner considers to be in the public interest. The reports required by this section shall be printed and shall include the locations of the main offices and branches, the names of the operating officers and directors or trustees of each bank, and such suggestions as the commissioner considers expedient relative to the general conduct and condition of banks under his supervision. Such report shall include a list of banks where the call provided for in section 38 of this chapter and in section 4 of chapter 167A exceeds the amount loaned to the Massachusetts Housing Partnership Fund pursuant thereto.

M.G.L. c. 167, § 14 Credit needs of local communities; assessment of banks; regulations; application for establishment of domestic branch; examination; alternative community reinvestment examination procedure

c. 167, § 14. Credit needs of local communities; assessment of banks; regulations; application for establishment of domestic branch; examination; alternative community reinvestment examination procedure Section 14. The commissioner shall assess the record of each supervised bank in satisfying their continuing and affirmative obligation to help meet the credit needs of the communities in which offices and branches are maintained, including areas contiguous thereto and low and moderate income neighborhoods, consistent with the safe and sound operation of such banks. To assist in carrying out this section, the commissioner shall promulgate regulations which shall include the regulations promulgated pursuant to federal law; provided, however, that with respect to such assessments of corporations chartered pursuant to chapter 171 and electronic banking activities and the electronic delivery of banking services, including internet banking activities of banks, the commissioner may make such adjustments and exceptions thereto as are deemed required; and provided, further, that the regulations may include, but not be limited to, a consideration of a bank's origination of loans and other efforts to assist existing low and moderate income residents to be able to remain in affordable housing in their neighborhoods, a bank's origination of loans that show an undue concentration and a systematic pattern of lending resulting in the loss of affordable housing units, a bank's participation, including investments in community development and redevelopment programs and small business technical assistance programs, pursuant but not limited to, paragraphs 8, 29, 30 and 30A of section 2 of chapter 167F, and such other requirements as in the judgment of the commissioner reasonably bear upon the extent to which a bank is helping to meet the credit needs of its entire community. Notwithstanding the foregoing, the commissioner shall further take into account the provision of state-of-the art computers and internet access at minimal or no cost to low and moderate income residents as part of the assessment of electronic banking activities and the electronic delivery of banking services, including internet banking activities of banks. Except for emergency regulations adopted pursuant to section 2 of chapter 30A, a regulation, or an amendment or repeal thereof, shall, after compliance with section 5 of chapter 30A, be submitted to the general court. The commissioner shall file the proposed regulation, amendment or repeal with the clerk of the house of representatives, together with a statement that the pertinent provisions of said chapter thirty A have been complied with and a summary of the regulations in layman's terms. The clerk shall refer such filing to the joint committee on banks and banking within five days of the filing thereof. No such regulation shall take effect until ninety days after it has been so filed; provided, however, that such ninety day period shall not include days when the general court is prohibited by law or rule from meeting in formal session. In considering an application for the establishment of a domestic branch or other facility with the ability to accept deposits, the relocation of the main office or branch office, or a merger or consolidation with or the acquisition of assets or assumption of liabilities of any Massachusetts bank, federal bank, foreign bank, out-of-state bank or out-of-state federal bank, the commissioner shall consider, but not be limited to, the record of performance of the bank and its holding company, including all subsidiaries thereof, relative to this section. Notwithstanding any other law to the contrary, the commissioner shall establish an alternative community reinvestment examination procedure for supervised banks which, as of the most recent federal or state examination, have been assigned a rating of outstanding record or high satisfactory record of performance in meeting its community credit needs. Said record of performance of any such bank and holding company may be the basis for the denial of any such application. Upon the completion of the examination of a bank under this section, the commissioner shall prepare a written evaluation of the bank's said record of performance which shall be open to public inspection upon request. Said written evaluation shall include: (1) the assessment factors utilized to determine the bank's descriptive rating; (2) the commissioner's conclusions with respect to each such assessment factor; (3) a discussion of the facts supporting such conclusions; and (4) the bank's descriptive rating and the basis therefor. Based upon such examination, the bank shall be assigned one of the following ratings: (a) outstanding record of performance in meeting its community credit needs; (b) high satisfactory record of performance in meeting its community credit needs; (c) satisfactory record of performance in meeting its community credit needs; (d) needs to improve record of performance in meeting its community credit needs; or (e) substantial noncompliance in meeting its community credit needs. For the purposes of this section, the commissioner may conduct any such examinations or may enter into cooperative agreements with bank regulators in jurisdictions other than the commonwealth, including federal regulators, relative to the coordination of or joint participation in any such examinations, the amount and assessment of fees therefor or enforcement actions relevant thereto, and may accept reports of examinations by such regulators pursuant to such agreements. Nothing in this section shall be construed as limiting in any way the authority of the commissioner to independently conduct examinations of and enforcement actions against any Massachusetts or out-of-state branch. Any such alternative procedure established pursuant to this section shall seek to effect cost reductions for banks; provided, however, that any such procedure shall not limit public participation therein as permitted under said federal regulations.

M.G.L. c. 167, § 14A Mortgage review boards; members; terms; appointment; meetings; rules and regulations

c. 167, § 14A. Mortgage review boards; members; terms; appointment; meetings; rules and regulations Section 14A. There shall be four regional mortgage review boards operating in the commonwealth. There shall be a Boston metropolitan area mortgage review board which shall include the counties of Suffolk, Essex, Middlesex and Norfolk; a southeastern mortgage review board which shall include the counties of Bristol, Plymouth, Barnstable, Dukes County and Nantucket; a central Massachusetts mortgage review board which shall include Worcester county; and a western Massachusetts mortgage review board which shall include the counties of Franklin, Hampden, Hampshire and Berkshire. Each such board shall consist of seven members appointed by the commissioner, three of whom shall be mortgagees, three of whom shall be community representatives and one of whom shall be a member of the public; provided, however, that at least five of the members of each such board shall either live or work within the respective region. The commissioner shall provide proper minority and geographical representation in the membership of each board. Upon the expiration of the term of any member of a regional board, a successor shall be appointed, in like manner, for a term of three years. In the event of a vacancy, the commissioner may, in like manner, appoint a member who shall serve for the remainder of the unexpired term. Members of each such board shall serve without compensation, and shall be sworn to the faithful performance of their duties. Each regional board shall suggest for consideration by the commissioner one or more names for each such expiring term or vacancy. No member shall be appointed for more than two consecutive three year terms. The mortgage review boards shall meet on a regular basis to review each residential mortgage denial that an applicant believes was denied on the basis of the location of the property. Any applicant whose residential mortgage loan application is denied by any mortgagee making five or more mortgage loans in any calendar year on residential property located in the commonwealth of four units or less and occupied in whole or in part by the mortgagor shall be instructed by the mortgagee, in writing, at the time of denial of his right to appeal any such denial to the appropriate mortgage review board. Said board shall review each such submitted mortgage application, make its determination and advise the applicant thereof, in writing, within forty-five days of such appeal of a mortgage loan application denial and if such board fails to complete said action within said forty-five days, the applicant will be considered to have exhausted his administrative remedies. The decision of the board shall be subject to review in the manner provided in chapter thirty A, or in accordance with the provisions of section sixty-four of chapter one hundred and eighty-three. The commissioner may promulgate rules and regulations governing the establishment, operation and procedures of said mortgage review boards.

M.G.L. c. 167, § 14B Repealed, 1996, 359, Sec. 4

M.G.L. c. 167, § 14C Small business loan review boards; members; terms; appointment; meetings; rules and regulations

c. 167, § 14C. Small business loan review boards; members; terms; appointment; meetings; rules and regulations Section 14C. There shall be established four regional small business loan review boards in the commonwealth. There shall be a Boston metropolitan area small business loan review board which shall include the counties of Suffolk, Essex, Middlesex and Norfolk; a southeastern small business loan review board which shall include the counties of Bristol, Plymouth, Barnstable, Dukes County and Nantucket; a central Massachusetts small business loan review board which shall include Worcester county; and a western Massachusetts small business loan review board which shall include the counties of Franklin, Hampden, Hampshire and Berkshire. Each such board shall consist of five members appointed by the commissioner, three of whom shall be representatives of small business and two of whom shall be representatives of banks or bank holding companies; provided, however, that at least three of the members of each such board shall either live or work within the respective region. Upon the expiration of the term of any member of a regional board, a successor shall be appointed, in like manner, for a term of three years. In the event of a vacancy, the commissioner may, in like manner, appoint a member who shall serve for the remainder of the unexpired term. Members of each such board shall be sworn to the faithful performance of their duties. Each regional board shall suggest for consideration by the commissioner one or more names for each such expiring term or vacancy. No member shall be appointed for more than two consecutive three-year terms. The small business loan review boards shall meet on a regular basis or, as demand for their services requires, to review small business loan denials that applicants believe were unreasonably denied. The small business loan review board shall review a small business loan denial submitted by an applicant and report the results of its findings to the applicant within 30 days of submission of request for review; provided however, that the board may, at its discretion, extend the review period to within 60 days of a request for review. Upon making a determination for reason of denial, the small business loan review boards shall be required to provide information on their findings to the applicant and commissioner of banks and shall provide information to the applicant on alternative sources of financing, including information on any small business financing programs or other relevant programs offered by the commonwealth. The commissioner shall file annual reports regarding the activities of the small business loan review boards with the chairs of the joint committee on community development and small business, chairs of the joint committee on economic development and emerging technologies, and chairs of the joint committee on revenue, not later than January 1 of each year. In addition, the small business loan review boards shall conduct annual studies and issue annual reports on the availability of credit to small businesses within their regions and report back to the commissioner of banks on their findings. The reports shall be published and made available to the public through the website of the office of consumer affairs and business regulation or the small business website established under section 3 of chapter 23A. Notwithstanding this chapter, the commissioner may promulgate rules and regulations governing the establishment, operation and procedures of said small business loan review boards. In addition, the commissioner shall be required to market and promote the small business loan review boards as a resource for small businesses located in the commonwealth.

M.G.L. c. 167, § 15 Annual list to investment committee of banks meeting local community needs

c. 167, § 15. Annual list to investment committee of banks meeting local community needs Section 15. The commissioner of banks shall annually prepare and submit a list to the investment committee established under the provisions of section twenty-three of chapter thirty-two and the state treasurer which indicates those banks, as defined in section one, which have satisfied their continuing and affirmative obligations to help meet the needs of the local communities in which they are chartered, including low and moderate-income neighborhoods, as set forth in section fourteen. Only mortgage lenders so listed shall be eligible to sell or participate in the sale of mortgage pass-through securities or mortgage-backed bonds to public employee retirement systems. Only banks so listed shall be eligible to receive deposits under the provisions of section thirty-four or thirty-four A of chapter twenty-nine. The commissioner of banks shall also prepare and submit annually to said investment committee and the state treasurer a list, based on information received from the appropriate federal agency, which indicates those federal savings and loan associations and national banking associations which have been determined by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the Office of the Comptroller of the Currency to have complied with the requirements of the Federal Community Reinvestment Act, sections 802 et seq., of Title VIII of P.L. 95–128, and regulations promulgated thereunder. Only those associations so listed shall be eligible to sell such securities or bonds to such systems, and to receive deposits under the provisions of section thirty-four or thirty-four A of chapter twenty-nine.

M.G.L. c. 167, § 15A Annual list of legal investments

c. 167, § 15A. Annual list of legal investments Section 15A. (a) As used in this section and in sections 15B to 15K, inclusive, ''legal list'' or ''legal investments'' shall mean the list of securities approved for investment by the commissioner. (b) On or before July 1 of each year, the commissioner shall prepare a list of all stocks, bonds, notes and other interest-bearing obligations which are then legal investments under said sections 15B to 15K, inclusive; provided, however, that all privately placed or held issues may in the discretion of the commissioner be omitted. An entity issuing such an instrument shall identify itself directly to the commissioner as being eligible to be included on the list under sections 15E to 15K, inclusive; provided, however, that the commissioner shall have the discretion to add any entity and instrument to the list. The list shall include the name of any investment fund approved by the commissioner which invests only in such stocks, bonds, notes and other interest bearing obligations. The shares of any such investment fund so approved shall be legal investments pursuant to this section to the same extent as any such stocks, bonds, notes and other interest bearing obligations. The list shall at all times be public. In the preparation of any such list which the commissioner shall prepare or furnish, the commissioner may employ expert assistance as the commissioner believes proper or may rely upon information contained in publications which the commissioner believes authoritative in reference to such matters and the commissioner shall not be held responsible or liable for the omission from the list of the name of any state or political subdivision or authority of the state or of any corporation or association the stocks, bonds, notes or other interest bearing obligations which so conform or any investment fund which conforms to this chapter or for the omission of any investment funds, stocks, bonds, notes or other interest bearing obligations which so conform. The commissioner shall not be held responsible or liable for inclusion in the list of any such names or of nonconforming investment funds, stocks, bonds, notes or other interest-bearing obligations. (c) Officers and members of a board of a bank or credit union may rely upon the legal list as representing an accurate listing of investment funds, stocks, bonds, notes and other interest bearing obligations eligible for investment by the bank or credit union and no officer or member shall be personally liable for any loss incurred by the bank or credit union arising from the purchase in good faith of any shares in an investment fund or security appearing on the list at the time of the purchase. (d) Subsequent to the annual preparation of the list, the commissioner may add the name of any investment fund which meets the requirements of this section. (e) Before making an investment under this section, an entity shall conduct an appropriate level of due diligence to determine if an investment is both permissible and appropriate. This may include both internal and external analysis. For debt instruments, the analysis shall not rely solely on 1 or more credit rating agencies and the entity shall determine that the instrument has both a low risk of default by the obligor and the full and timely repayment is expected over the expected life of the investment.

M.G.L. c. 167, § 15B Inclusion of certain investments in list of legal investments upon approval by commissioner; application by credit union; refunding bonds

c. 167, § 15B. Inclusion of certain investments in list of legal investments upon approval by commissioner; application by credit union; refunding bonds Section 15B. (a) The legal list prepared pursuant to section 15A may include securities that are approved for investment in accordance with this section. (b) The securities eligible for approval for investment under this section may include: (i) interest-bearing obligations of any state, county, city, town or district or any subdivision or instrumentality thereof and any authority established under the laws of the United States or any state, county, town or district, including obligations of any of the foregoing payable from specified revenues; (ii) interest-bearing obligations of any corporation organized under the laws of the United States or any state and of any association, the business of which is conducted or transacted by trustees under a written instrument or declaration of trust, having its principal place of business in the commonwealth; and (iii) preferred and common stock of any corporation described in clause (ii). Obligations eligible pursuant to clauses (i) and (ii) shall have an initial offering of at least $50,000,000 and be rated at least a single A. (c) Upon application by 3 credit unions which have been chartered pursuant to chapter 171, which have submitted in the form and under the conditions as the commissioner may require, requesting authority to invest their deposits and the income derived from their deposits in any of the interest-bearing obligations or stocks referred to in subsection (b), the credit unions may request that the commissioner, in the form and under the conditions as the commissioner may require, authorize, notwithstanding any general or special law to the contrary, the investment in the interest bearing obligations or stock. (d) If the commissioner grants the authority, the commissioner shall immediately add the name of the investment to the legal list. At any time after adding the name of the investment to the legal list, the commissioner may on the commissioner's own initiative revoke that authority. (e) If the commissioner authorized investment in an issue of bonds in accordance with this section and, if after the authorization but before the authorization is revoked the issuer shall issue bonds, the proceeds of which shall be used solely to refund the issue previously authorized for investment or another issue of equal or shorter maturity and of equal or prior security and, if the new bonds shall be of equal security with the previously authorized issue and of equal or shorter maturity, the commissioner may authorize investment in the refunding bonds and after the authorization may revoke the authority on the commissioner's own initiative. If the commissioner authorized investment in an issue of bonds in accordance with this section and, if after the authorization but before the authorization is revoked, the issuer shall issue bonds of which at least 90 per cent of the proceeds shall be used to refund the issue previously authorized for investment or another issue of equal or prior security, the security for the new bonds is not less than that for the previously authorized issue and the commissioner may authorize investment in the new bonds and after the authorization may revoke the authority on the commissioner's own initiative. (f) In determining that any investments authorized under this section shall be included in the legal list or deleted from the list, the commissioner may employ such expert assistance as the commissioner believes proper or may rely upon information contained in publications which the commissioner believes authoritative. (g) Not more than 10 per cent of the assets of the entity shall be invested in investments authorized under this section.

M.G.L. c. 167, § 15C Classes of bonds, notes or other interest-bearing federal, state and international obligations in which entity may invest

c. 167, § 15C. Classes of bonds, notes or other interest-bearing federal, state and international obligations in which entity may invest Section 15C. An entity that may invest pursuant to section 15A or the legal list may invest in bonds, notes or other interest-bearing obligations of the following classes: (i) direct obligations of the United States or in obligations that are unconditionally guaranteed as to the payment of principal and interest by the United States; (ii) legally issued, assumed or unconditionally guaranteed bonds, notes or other interest-bearing obligations of the commonwealth, including legally issued bonds, notes or other indebtedness of an entity established as a public instrumentality by general or special law; (iii) legally issued, assumed or unconditionally guaranteed bonds, notes or other interest-bearing obligations of any state other than the commonwealth which has, not within the 20 years prior to making the investment, defaulted for a period of more than 120 days in the payment of any part of either principal or interest of any legally issued or assumed obligation; provided, however, that the full faith and credit of the state shall be pledged for the payment of the principal and interest of the obligations; (iv) bonds, notes or other obligations issued or guaranteed as to both principal and interest by the Dominion of Canada or any of its provinces; provided, however, that (A) the bonds, notes or obligations shall be payable in United States funds either unconditionally or at the option of the holder of the bonds, notes or other obligations; and (B) at the date of investment the Dominion of Canada or the applicable province shall not have been in default in the payment of interest or principal of any of its obligations for a period in excess of 31 days at any time within the 20 years preceding such date of investment. Not more than 5 per cent of the assets of an entity authorized to invest pursuant to section 15A or the legal list may be invested in obligations authorized under this paragraph; (v) bonds, notes or obligations issued, assumed or guaranteed by the International Bank for Reconstruction and Development, the Inter–American Development Bank or the Asian Development Bank containing an unconditional promise to pay or an unconditional guarantee of the payment of the interest on the bonds, notes or obligations regularly and the principal of the bonds, notes or obligations by a specified date in United States currency; provided, however, that not more than 3 per cent of the assets of an entity authorized to invest pursuant to section 15A or the legal list shall be invested in the bonds, notes or obligations; and provided further, that the commissioner may at any time on the commissioner's own initiative suspend the authorization granted by this clause for periods as the commissioner may determine; (vi) obligations of or instruments issued by and fully guaranteed as to principal and interest by the Federal National Mortgage Association established under the federal National Housing Act, 12 U.S.C. 1715 et seq.; (vii) debentures, bonds or other obligations issued by any federal home loan bank or consolidated federal home loan bank debentures or bonds issued by the federal home loan bank board under the Federal Home Loan Bank Act, 12 U.S.C. 1421 et seq.; (viii) debentures issued by the Central Bank for Cooperatives or consolidated debentures issued by the Central Bank for Cooperatives and the 12 Regional Banks for Cooperatives under the federal Farm Credit Act of 1933, 12 U.S.C. 1131 et seq.; (ix) collateral trust debentures or other similar obligations issued by any federal intermediate credit bank or consolidated debentures or other similar obligations issued by the federal intermediate credit banks under the Federal Farm Loan Act, 12 U.S.C. 742 et seq.; (x) farm loan bonds issued by any federal land bank under said Federal Farm Loan Act; (xi) promissory notes representing domestic farm labor housing loans authorized under federal law when the notes are fully guaranteed as to principal and interest by the Farmers Home Administration of the United States Department of Agriculture; (xii) bonds, notes or obligations issued, assumed or guaranteed by the Export–Import Bank of the United States; (xiii) obligations of any person, including any form of mortgage-backed security, as to which the payment of principal and interest according to the terms of the obligations shall be guaranteed by the Government National Mortgage Association under said federal National Housing Act; (xiv) certificates issued by the Federal Home Loan Mortgage Corporation representing interests in mortgage loans made, acquired or participated in by the Federal Home Loan Mortgage Corporation; and (xv) system-wide obligations issued under the Farm Credit Act of 1971, 12 U.S.C. 2001 et seq., by institutions included in the federal farm credit system.

M.G.L. c. 167, § 15D Classes of bonds, notes or other interest-bearing municipal obligations in which entity may invest

c. 167, § 15D. Classes of bonds, notes or other interest-bearing municipal obligations in which entity may invest Section 15D. An entity authorized to invest pursuant to section 15A or the legal list may invest in bond, notes or other interest-bearing obligations of the following classes: (i) legally issued or assumed bonds, notes or other interest-bearing obligations of a county, city, town or legally established district of the commonwealth; and (ii) legally issued or assumed bonds, notes or other interest-bearing obligations of a county, city, town or legally established district outside of the commonwealth; provided, however, that this clause shall not authorize investments in obligations of any city or town outside of the commonwealth which have been in default for more than 120 days in the payment of any part of principal and interest of all bonds, notes or other interest-bearing obligations legal for investment under this section. The full faith and credit of the county, city, town or district shall be pledged for the full payment of principal and interest of all bonds, notes or other interest bearing obligations legal for investment under this section.

M.G.L. c. 167, § 15E Investment in bonds, notes or other interest-bearing obligations of railroad corporations

c. 167, § 15E. Investment in bonds, notes or other interest-bearing obligations of railroad corporations Section 15E. (a) An entity that may invest pursuant to section 15A or the legal list may invest in bonds, notes or other interest-bearing obligations of railroad corporations subject to the conditions, limitations and requirements of this section. (b) With respect to bonds, the obligations shall be those of a railroad incorporated in the United States or any state doing business principally within the United States and shall contain an unconditional promise to pay the interest on the bonds regularly and to pay the principal at a specified date. This promise may be modified, if at all, only by a vote of holders of at least 75 per cent in amount of the bonds. Not more than 20 per cent of the assets of the entity shall be invested in the railroad obligations. (c) Investments in railroad equipment obligations shall be those of, or guaranteed by, a railroad incorporated in the United States or any state and which is doing business principally within the United States.

M.G.L. c. 167, § 15F Investment in bonds of company engaged in the business of furnishing telephone service

c. 167, § 15F. Investment in bonds of company engaged in the business of furnishing telephone service Section 15F. (a) As used in sections 15F and 15G, ''bond'' shall include a note or debenture. (b) An entity that may invest pursuant to section 15A or the legal list may invest in the bonds of any company which at the time of the investment is incorporated under the laws of the United States or any state and may engage and is engaging in the business of furnishing telephone service in the United States, subject to the following: (i) the bonds shall be part of an original issue of not less than $25,000,000 in principal amount when the company is not incorporated in the commonwealth; and (ii) not more than 20 per cent of the assets of the entity shall be invested in the bonds of telephone companies.

M.G.L. c. 167, § 15G Investment in bonds, notes or other interest-bearing obligations of gas, electric light or water company or bonds of company supplying electrical energy or artificial gas or natural gas purchased from another company

c. 167, § 15G. Investment in bonds, notes or other interest-bearing obligations of gas, electric light or water company or bonds of company supplying electrical energy or artificial gas or natural gas purchased from another company Section 15G. (a) An entity that may invest pursuant to section 15A or the legal list may invest in bonds, notes or other interest-bearing obligations of a gas, electric light or water company incorporated or doing business in the commonwealth and subject to the control and supervision of the commonwealth. (b) An entity that may invest pursuant to section 15A or the legal list may invest in the bonds of any company which at the time of the investment is incorporated under the laws of the United States or any state and transacting the business of supplying electrical energy or artificial gas or natural gas purchased from another company and supplied in substitution for or in mixture with artificial gas for light, heat, power and other purposes or transacting any or all of the business. The bonds shall be part of an original issue of not less than $25,000,000 in principal amount. (c) Not more than 25 per cent of the assets of the entity shall be invested in obligations under this section and no more than 4 per cent shall be invested in the obligations of any 1 company.

M.G.L. c. 167, § 15H Investment in common stock of banking corporations and bank holding companies

c. 167, § 15H. Investment in common stock of banking corporations and bank holding companies Section 15H. An entity that may invest pursuant to section 15A or the legal list may invest in the common stock of banking corporations and bank holding companies subject to the following conditions, limitations and requirements: (i) in the common stock of a bank in stock form incorporated under the laws of and doing business within the commonwealth; provided, however, that there shall be no preferred stock outstanding; or, in the common stock of a federally chartered bank in stock form doing business within the commonwealth; provided, however, that there shall be no preferred stock outstanding; provided further, that state-chartered or federally-chartered bank shall be well capitalized under bank regulatory criteria; (ii) in the common stock of a state-chartered bank or federally chartered bank doing business anywhere within the United States, which is a member of the federal reserve system and is well capitalized under bank regulatory criteria; (iii) in the common stock of a bank holding company as defined in chapter 167A; provided, however, that the stock shall be received pursuant to an offer made by the bank holding company to exchange shares of its common stock for shares of a bank in stock form incorporated under the laws of the commonwealth or for shares of a federally-chartered bank doing business in the commonwealth; or provided, however, that the stock shall be received pursuant to a plan for the merger or consolidation of the bank with or into or the transfer, sale or exchange of property or of assets of the bank or with a bank in stock form incorporated under the laws of the commonwealth or a federally-chartered bank doing business in the commonwealth the stock of the bank, as the case may be, shall be at the time owned by the bank holding company; (iv) in the common stock of a bank holding company as defined in said chapter 167A acquired otherwise than as set forth in the first paragraph or in the common stock of a bank holding company as defined in the federal Bank Holding Company Act of 1956, 12 U.S.C. 1841 et seq.; provided, however, that the holding company shall own 80 per cent or more of the voting stock of the qualifying bank; provided further, that if at any time after an investment in the common stock of the bank holding company, no bank of the holding company shall meet the requirements of clauses (iii) or (iv), the holding company's stock shall be disposed of within the reasonable time as the commissioner shall determine; and (v) in the common stock of a company as defined in chapter 167A or in said federal Bank Holding Company Act of 1956; provided, however, that the banking institution or bank shall be the kind referred to in clauses (iii) or (iv) and the stock of the banking institution or bank represents at least 50 per cent of the company's assets at book value at the end of its fiscal year immediately preceding the date of investment or at the date of investment in the case of a newly formed company.

M.G.L. c. 167, § 15I Purchase of stock of savings or co-operative bank, federal savings and loan association or federal saving bank

c. 167, § 15I. Purchase of stock of savings or co-operative bank, federal savings and loan association or federal saving bank Section 15I. Subject to applicable banking laws, an entity that may invest pursuant to section 15A or the legal list may purchase the whole or any part of the stock of a savings bank, co-operative bank, federal savings and loan association or federal savings bank; provided, however, that the bank or association shall be well capitalized under bank regulatory criteria.

M.G.L. c. 167, § 15J Investment in capital stock of insurance company conducting fire and casualty insurance business

c. 167, § 15J. Investment in capital stock of insurance company conducting fire and casualty insurance business Section 15J. An entity that may invest pursuant to section 15A or the legal list may invest in the capital stock of any insurance company that may conduct a fire and casualty insurance business; provided, however, that no insurance stock shall be purchased if the cost of the insurance stock added to the cost of insurance stocks and bank stocks already owned shall exceed 662/3 per cent of the total of the assets of the entity.

M.G.L. c. 167, § 15K Classes of securities in which entity may invest

c. 167, § 15K. Classes of securities in which entity may invest Section 15K. An entity that may invest pursuant to section 15A or the legal list may invest in securities of any of the following classes: debentures, convertible debentures, notes or other evidences of indebtedness of: (i) a banking corporation in the common stock of which the corporation may invest pursuant to paragraph 1 of section 15H; provided, however, that the entity that may invest pursuant to said section 15A or the legal list shall be well capitalized under regulatory criteria; or (ii) a banking corporation in the common stock of which the corporation may invest pursuant to paragraph 2 of said section 15H shall be well capitalized under regulatory criteria.

M.G.L. c. 167, § 16 Repealed, 1987, 296, Sec. 1

M.G.L. c. 167, § 17 Repealed, 1996, 359, Sec. 5

M.G.L. c. 167, § 18 Appraisal of real estate in case of excessive loan

c. 167, § 18. Appraisal of real estate in case of excessive loan Section 18. Whenever in the opinion of the commissioner an excessive loan has been made, or is about to be made, upon real estate, by a bank, said commissioner may cause an appraisal of such real estate to be made at the expense of the bank making the loan. One appraiser shall be named by the commissioner, one by the bank, and a third by the two thus named. The appraisers shall determine the value of the real estate and certify the same, in writing, to the commissioner and to the bank. If it appears from the appraisal that the loan is excessive, the commissioner may make such order in relation thereto as he deems advisable.

M.G.L. c. 167, § 19 Losses of bank exceeding surplus and other reserve accounts

c. 167, § 19. Losses of bank exceeding surplus and other reserve accounts Section 19. Whenever it has been determined by the commissioner, after investigation, that the losses of any such bank resulting from a depreciation in the value of its assets or otherwise, exceed its surplus and any other reserve accounts, so that the estimated value of its assets is less than the total amount due to shareholders and holders of accounts referred to in chapter one hundred and sixty-seven D, he may require, by order, a suspension of dividend and interest distributions or a reduction of its liability to such shareholders and account holders in such manner as to distribute the loss equitably among them. If, after such an order of reduction, the bank realizes from such assets an amount in excess of the value so estimated, such amount shall be divided among the then remaining shareholders and account holders whose balances were so reduced, to the extent of such reduction only, and any balance of said excess remaining shall be transferred to the surplus account.

M.G.L. c. 167, § 20 Verification of savings accounts

c. 167, § 20. Verification of savings accounts Section 20. At least once in each three year period, every bank shall cause its savings accounts to be verified, to such an extent and in such manner as the commissioner shall require, and under such rules as he may prescribe.

M.G.L. c. 167, § 21 Closing of banks

c. 167, § 21. Closing of banks Section 21. Any bank, which term for the purposes of this section shall include not only any bank as defined in section one but also, to the extent that the provisions hereof are not inconsistent with and do not infringe upon paramount federal law governing national banks, any national banking association, federal reserve bank, federal home loan bank, federal savings and loan association or federal credit union doing business in the commonwealth, may remain closed on any and all Saturdays and any and all days on which, by reason of an occasion of national mourning or rejoicing, or national emergency or local emergency affecting the community in which such bank is located, the governor shall, by proclamation, request the people of the commonwealth or of said community to close their places of business. Wherever the commissioner determines that an emergency exists affecting banks located in the commonwealth or in any part or parts thereof, he may authorize banks located in the area or areas affected by such emergency to close any or all of their offices, and he shall make public announcement of such authorization. Further, if the commissioner determines that an emergency exists which affects a particular bank or banks or a particular office or offices thereof but not banks located in the area generally, he may authorize the particular bank or banks or office or offices so affected to close. As used in this paragraph, the word ''emergency'' shall include any condition which may interfere with the conduct of the normal operations of, or the transportation of, employees to or from, a bank or one or more offices thereof, or poses an existing or imminent threat to the safety or security of bank personnel or property, including, without limitation, conditions arising by reason of fire, flood, windstorm, snowstorm or other casualty, interruption of transportation or power facilities, war or other enemy action, and riots, civil commotion or other acts of lawlessness or violence. Whenever the officers of a bank are of the opinion that conditions exist which pose an existing or imminent threat to the safety or security of bank personnel or property generally or at any one or more offices thereof, they may close the bank or the office or offices affected by such threat, as the case may be irrespective of whether the governor has acted or the commissioner has acted under this section. As used in this section, the word ''officers'' shall mean the person or persons designated by the board of directors, board of trustees or other governing body of a bank to act for the bank in carrying out the provisions of this section or, in the absence of any such designation, the president or any other officer currently in charge of the operations of the bank or of the office or offices in question. A bank closing an office or offices pursuant to this section shall enter in the records of the next following meeting of the board of directors and board of investment the cause and time of such closing. Any bank or office thereof which is closed by action of the commissioner under this section may remain closed until the commissioner declares that the emergency had ended; if closed by decision of the officers, the bank may remain closed until they determine that the threat has ended; and, in either event, for such further time thereafter as may reasonably be required to reopen but in any event until the normal time of opening on the next business day. Any Saturday or proclaimed day of closing on which a bank remains closed, and any day on which a bank or anyone or more of its offices is closed during any part or all or its normal banking hours by decision of the commissioner or by decision of its officers, shall be, with respect to such bank or, if not all of its offices are closed, then with respect to those offices which are closed, a day which is neither a ''full business day'' nor a ''banking day'' as such words are used in and for purposes of chapter one hundred and six, and any act authorized, required or permitted to be performed at, or by or with respect to such bank or such office or offices, on such day, may be performed on the next succeeding business day without any liability or loss of rights resulting from such delay. Any action taken by the commissioner in authorizing any bank to close shall be recorded in a permanent record book, of such actions, to be maintained by the commissioner. The provisions of this section shall be construed to be in addition to and not in substitution for, or in limitation of, any other law of the commonwealth or of the United States authorizing the closing of banks or excusing delay by a bank in the performance of its duties or obligations because of emergencies or conditions beyond its control or otherwise.

M.G.L. c. 167, § 21A Assent to and participation in bank reorganization by government officers

c. 167, § 21A. Assent to and participation in bank reorganization by government officers Section 21A. Any officer of the commonwealth or of any political subdivision thereof, or of any public or quasi-public body or corporation, receiving public or quasi-public moneys, including trust and sinking funds, who lawfully and in good faith and in the exercise of due care has deposited any of such moneys to the credit of any political subdivision of the commonwealth, or of any department, board, commission or other activity of the commonwealth or of any political subdivision thereof, or of any such body or corporation in a bank as defined in section one or in a national banking association doing business within the commonwealth, may, subject to the approval hereinafter required, on behalf of the commonwealth or political subdivision thereof or of the public or quasi-public body or corporation, on behalf of which such moneys were deposited, and without thereby incurring any personal liability for the loss of any such moneys by reason of any reorganization hereinafter referred to, assent to and participate in a plan of reorganization of such bank or national banking association, if such plan shall have previously been approved by the commissioner or by the comptroller of the currency, and may enter into all necessary agreements in connection therewith. The state treasurer, subject to the approval hereinafter required, may act under authority of this section as to any public moneys deposited by himself or any other officer of the commonwealth to the credit of the commonwealth and not specifically to the credit of any department, board, commission or other activity thereof. No action shall be taken under authority of this section unless and until approved, in case of action of the state treasurer or any other officer of the commonwealth, by the governor and council; in case of action of any officer of a county, city or town, by the county commissioners, mayor and city council or board of selectmen; in case of action of any officer of a district, by the prudential committee thereof, or other officer or board exercising similar powers therein; and in case of action of any officer of a public or quasi-public body or corporation, by its board of directors, or board of trustees or other officers or board thereof exercising similar powers.

M.G.L. c. 167, § 22 Taking possession of property and business of bank by commissioner

c. 167, § 22. Taking possession of property and business of bank by commissioner Section 22. Whenever it shall appear to the commissioner that any bank has violated its charter or any law of the commonwealth, or is conducting its business in an unsafe or unauthorized manner, or that its capital is impaired, or if it shall refuse to submit its books, papers and concerns to the inspection of the commissioner or his duly authorized agents, or if any officer of such bank shall refuse to be examined on oath by the commissioner or his duly authorized assistants touching its concerns, or if it shall suspend payment of its obligations, or if from an examination or from a report provided for by law the commissioner shall have reason to conclude that such bank is in an unsound or unsafe condition to transact the business for which it is organized, or that it is unsafe and inexpedient for it to continue business, the commissioner may take possession forthwith of the property and business of such bank and may retain possession thereof until the bank shall resume business or until its affairs shall finally be liquidated as herein provided.

M.G.L. c. 167, § 23 Notice of taking possession of bank by commissioner

c. 167, § 23. Notice of taking possession of bank by commissioner Section 23. Upon taking possession of the property and business of a bank, the commissioner shall forthwith give notice thereof to all banks, associations and individuals holding or having possession of any assets of such bank. No bank, association or individual, knowing that the commissioner has taken such possession or having been notified thereof as aforesaid, shall have a lien or charge for any payment, advance or clearance thereafter made, or liability thereafter incurred, against any of the assets of the bank of whose property and business the commissioner shall have taken possession as aforesaid. Such bank may, with the consent of the commissioner, resume business upon such conditions as said commissioner may approve; provided, however, that if, in said commissioner's judgment it is for the public interest so to do, said commissioner may retain, in behalf of the bank the control, prosecution or defense of any undetermined suits or claims brought on behalf of, or against, the bank under section twenty-five during the time when the bank was in said commissioner's charge, and the expense of prosecuting or defending such suits or claims shall be paid from the funds of such bank.

M.G.L. c. 167, § 24 Collection of moneys due and liquidation of affairs of banks in possession of commissioner

c. 167, § 24. Collection of moneys due and liquidation of affairs of banks in possession of commissioner Section 24. Upon taking possession of the property and business of such bank, the commissioner may collect moneys due to the bank and do all acts necessary to conserve its assets and business, and shall proceed to liquidate its affairs as hereinafter provided. Said commissioner shall collect all debts due and claims belonging to it, and upon the order or decree of the supreme judicial court, or any justice thereof, may sell or compound all bad or doubtful debts, and, on like order or decree, may sell for cash or other consideration or as provided by section thirty-eight of chapter one hundred and sixty-eight or section thirty-seven of chapter one hundred and seventy-two, all or any part of the real and personal property of the bank on such terms as the court shall direct, and, in the name of such bank, may take a mortgage on such real property from a bona fide purchaser to secure the whole or a part of the purchase price upon such terms and for such periods as the court shall direct. If, at any time after he has taken possession of the property and business of a bank under section twenty-two, the commissioner deems it necessary to enforce the individual liability of stockholders therein, as described in the first sentence of section twenty-eight of chapter one hundred and seventy-two, in order to pay the liabilities of such bank, said commissioner may file a bill in equity in the supreme judicial court against all persons who were stockholders therein at the time of such taking possession; but no such stockholder shall be liable to pay a larger sum than the amount of the par value of the stock held by him at the time of such taking possession. Such suit shall not abate by reason of the non-joinder of persons liable as respondents, unless the commissioner, after notice by plea or answer of their existence, unreasonably neglects to make them parties, nor shall it abate by reason of the death of a respondent but his estate shall be liable in the hands of his executor or administrator who may voluntarily appear, or who may be summoned by the commissioner to defend the suit. The commissioner shall not sell for cash or other consideration or as provided by section thirty-eight of chapter one hundred and sixty-eight all or any part of the real or personal property of a savings bank in his possession without having first given to the Depositors Insurance Fund, and to the Federal Deposit Insurance Corporation or to any successor to said corporations, respectively, reasonable opportunity, jointly or severally, to offer to purchase the same; and the commissioner shall, in any petition to the supreme judicial court filed by him seeking an order or decree directing the sale of any such property, certify that such reasonable opportunity has been so given and the amounts, if any, for which the Depositors Insurance Fund, or the Federal Deposit Insurance Corporation, or both, or any successor corporation thereto have expressed a willingness to purchase said property.

M.G.L. c. 167, § 25 Prosecution and defense of suits and other legal proceedings; sales of property

c. 167, § 25. Prosecution and defense of suits and other legal proceedings; sales of property Section 25. To execute and perform the powers and duties conferred upon him, the commissioner may, in the name of any such bank, prosecute and defend all suits and other legal proceedings and may, in the name of the bank, execute, acknowledge and deliver all deeds, assignments, releases and other instruments necessary and proper to effectuate any sale of real or personal property or any compromise authorized by the court, and any deed or other instrument, executed pursuant to the authority hereby given, shall be valid and effectual for all purposes to the same extent as though executed by the officers of the bank by authority of its board of directors or of its stockholders, or by the individual banker personally. In case any of the real property so sold is located in a county other than that where the application to the court for leave to sell the same is made, the commissioner shall cause a certified copy of the order or decree of the court authorizing or ratifying such sale to be filed in the registry of deeds for the district wherein said real property lies.

M.G.L. c. 167, § 26 Appointment of agents to assist in liquidation and distribution; federal agencies as liquidating agent; subrogation rights

c. 167, § 26. Appointment of agents to assist in liquidation and distribution; federal agencies as liquidating agent; subrogation rights Section 26. The commissioner may, under his hand and official seal, appoint agents to assist him in the duty of liquidation and distribution. The certificates of the appointment of such agents shall be filed in the office of the commissioner and certified copies thereof shall be filed in the office of the clerk of the supreme judicial court. Said commissioner may from time to time authorize such agents to perform such duties connected with said liquidation and distribution as he deems proper. Said commissioner may procure such expert assistance and advice as he considers necessary in the liquidation and distribution of the assets of such bank and he may retain such officers or employees of the bank as he deems necessary. Said commissioner shall require, from a special agent and from such assistants, such security for the faithful discharge of their duty as he deems proper. Said commissioner may, under his hand and official seal, appoint a federal agency as the liquidating agent of a bank insured by the Federal Deposit Insurance Corporation. Upon its acceptance of the appointment, the agency as liquidating agent shall acquire both legal and equitable title to all of the assets, rights or claims and to all of the real or personal property of the closed bank. The agency as liquidating agent shall have the power to perform all acts and duties of said commissioner in the liquidation of the closed bank. Said commissioner shall petition the supreme judicial court for an order confirming the appointment of the agency as liquidating agent of such bank. Whenever a federal deposit insurance agency pays or makes available for payment the insured deposit liabilities of a closed bank, it shall become subrogated to all of the rights of the owners of the deposits against the closed bank, whether or not it has become receiver thereof, in the same manner and to the same extent as it would be subrogated in the closing of a national banking association as provided in 12 USC 1811 et seq. For the purposes of this section and section 26A, a federal agency shall mean the Federal Deposit Insurance Corporation, any successor to such corporation, or any other agency or instrumentality of the United States.

M.G.L. c. 167, § 26A Assistance of federal agency as liquidating agent; notice requirements

c. 167, § 26A. Assistance of federal agency as liquidating agent; notice requirements Section 26A. Whenever a federal agency, as defined in section 26, is named as liquidating agent of a banking institution as defined in section 1 of chapter 167A, the board of Bank Incorporation or the commissioner of banks, in order to assist such agency, may exercise its authority under said chapter 167A, chapter 168, chapter 170, and chapter 172 without regard to notice of hearing requirements to effect a resolution.

M.G.L. c. 167, § 26B National Credit Union Administration Board as liquidating agent of credit unions; subrogation rights

c. 167, § 26B. National Credit Union Administration Board as liquidating agent of credit unions; subrogation rights Section 26B. The commissioner may, under his hand and official seal, appoint the National Credit Union Administration Board as the liquidating agent of a credit union insured by said National Credit Union Administration Board. Upon its acceptance of the appointment, said board as liquidating agent shall acquire both legal and equitable title to all of the assets, rights or claims and to all of the real or personal property of such closed credit union. Said board shall have the power to perform all acts and duties of the commissioner in the liquidation of such closed credit union. Further, said board may also as liquidating agent aid in the liquidation of a credit union insured by it in the same manner and to the same extent as the Massachusetts Credit Union Share Insurance Corporation may aid in the liquidation of a credit union insured by that corporation, as provided in chapter 171. Whenever the National Credit Union Administration Board pays or makes payment of the insured share and deposit liabilities of a closed credit union, it shall become subrogated to all of the rights of the member and owner of the shares and deposits against the closed credit union, whether or not it becomes receiver thereof in the same manner and to the same extent as it would be subrogated in the closing of a federal credit union as provided in 12 U.S.C. section 1781.

M.G.L. c. 167, § 27 Inventory of bank assets

c. 167, § 27. Inventory of bank assets Section 27. Upon taking possession of the property and assets of such bank, the commissioner shall make an inventory, in duplicate, of the assets of the bank, one to be filed in his office and one in the office of the clerk of the supreme judicial court.

M.G.L. c. 167, § 28 Notice to claimants; claims presented

c. 167, § 28. Notice to claimants; claims presented Section 28. The commissioner shall publish weekly for three consecutive months, in such newspapers as he directs, a notice calling on all persons who may have claims against such bank to present the same to the commissioner and to make legal proof thereof at a place and in a time, not earlier than the last day of publication, to be therein specified. The commissioner shall mail a similar notice to all persons whose names appear as creditors upon the books of the bank, so far as their addresses are known. If the commissioner doubts the justice and validity of any claim, he may reject the same and serve notice of such rejection upon the claimant either personally or by mail. An affidavit of service of such notice, which shall be prima facie evidence thereof, shall be filed with the commissioner. An action upon the claim so rejected shall not be entertained unless brought within six months after such service. Claims presented after the expiration of the time specified in the notice to creditors shall be entitled to share in the distribution only to the extent of the assets in the hands of the commissioner equitably applicable thereto.

M.G.L. c. 167, § 29 List of claims presented

c. 167, § 29. List of claims presented Section 29. Upon the expiration of the time fixed for the presentation of claims, the commissioner shall make, in duplicate, a full and complete list of the claims presented, including and specifying such claims as have been rejected by him. One of said lists shall be filed in his office and the other in the office of the clerk of the supreme judicial court. Thereafter the commissioner shall make and file in said offices, at least fifteen days prior to every application to the court for leave to declare a dividend, a supplementary list of the claims presented since the last preceding list was filed, including and specifying such claims as have been rejected by him, and, he shall make and file said list at least once in every six months after the filing of the original list, so long as he remains in possession of the property and business of the bank. Said inventory and lists shall be open to inspection at all reasonable times.

M.G.L. c. 167, § 30 Fees and expenses

c. 167, § 30. Fees and expenses Section 30. The compensation of the special agents, counsel, employees and assistants, and all expenses of supervision and liquidation, shall be fixed by the commissioner, subject to the approval of the supreme judicial court, on notice to such bank, and, upon the certificate of the commissioner, shall be paid out of the funds of the bank in his hands.

M.G.L. c. 167, § 31 Dividends; objections to claims

c. 167, § 31. Dividends; objections to claims Section 31. At any time after the expiration of the date fixed for the presentation of claims, the supreme judicial court, on application of the commissioner, depositor, creditor, stockholder or any party in interest, may authorize or direct the commissioner to declare out of the funds remaining in his hands, after the payment of expenses, one or more dividends, and, after the expiration of one year from the first publication of notice to creditors, or earlier, if the supreme judicial court so orders, the commissioner may declare a final dividend, such dividends to be paid to such persons, in such amounts, and upon such notice as may be directed by the supreme judicial court or as may be directed by a justice of said court. Objections to any claim not rejected by the commissioner may be made by any person interested by filing a copy of the objections with the commissioner who shall present the same to the supreme judicial court at the time of the next application for leave to declare a dividend. The court to which such application is made shall thereupon dispose of said objections, or may refer them to a master, and, should the objections to any claim be sustained by the court or by the master, no dividend thereon shall be paid by the commissioner until the claimant shall have established his claim by the judgment of a court of competent jurisdiction. The court may make proper provision for unproved or unclaimed deposits.

M.G.L. c. 167, § 31A Dividend payments to minors; disposition of accounts of decedents

c. 167, § 31A. Dividend payments to minors; disposition of accounts of decedents Section 31A. In the case of a deposit standing in the name of a minor having no known guardian, the commissioner, in his discretion if the amount of the deposit does not exceed five hundred dollars, or with the approval of the supreme judicial court, whether or not the amount of the deposit exceeds five hundred dollars, may make any dividend payment, payable under section thirty-one on account of such deposit, to such minor or either of his parents, and such payment shall be a valid discharge to the same extent as if made to the legal representative of such minor. In the case of a deposit standing in the name of a decedent after whose death sixty days have elapsed, if no petition for the allowance of his will or for the administration of his estate has been filed, the commissioner, in his discretion if the amount of the deposit does not exceed five hundred dollars, may make any dividend payment, payable under said section thirty-one on account of such deposit, to the person or persons whom he finds entitled thereto, or the commissioner, with the approval of the supreme judicial court whether or not the amount of the deposit exceeds five hundred dollars, may make any dividend payment, payable under said section thirty-one on account of such deposit, to the person or persons whom the court finds entitled thereto, and in either case such payment shall be a valid discharge to the same extent as if made to the legal representative of the decedent.

M.G.L. c. 167, § 32 Property deposited with bank; disposition

c. 167, § 32. Property deposited with bank; disposition Section 32. Should any bank, at the time when the commissioner takes possession thereof, have in its possession for safe keeping and storage, any jewelry, plate, money, securities, valuable papers or other valuable personal property, or should it have rented any box, safes, or safe deposit boxes, or any part thereof, for the storage of property of any kind, the commissioner may at any time after taking possession as aforesaid cause to be mailed to the person claiming or appearing upon the books of the bank to be the owner of such property, or to the person in whose name the safe, vault, or box stands, a written notice in a securely closed postpaid, registered letter, directed to such person at his post office address as recorded upon the books of the bank, notifying such person to remove, within a period fixed by said notice and not less than sixty days from the date thereof, all such personal property; and upon the date fixed by said notice, the contract, if any, between such persons and the bank for the storage of such property, or for the use of said safe, vault or box, shall cease and determine, and the amount of unearned rent or charges, if any, paid by such person shall become debt of the bank to such person. If the property be not removed within the time fixed by the notice, the commissioner may make such disposition of said property as the supreme judicial court, upon application thereto, may direct; and thereupon the commissioner may cause any safe, vault or box to be opened in his presence, or in the presence of one of his special agents and a notary public not an officer or employee of the bank, or of the commissioner, and the contents thereof, if any, to be sealed up by such notary public in a package upon which the notary public shall distinctly mark the name and address of the person in whose name such safe, vault or box stands upon the books of the bank, and shall attach thereto a list and description of the property therein. The package so sealed and addressed, together with the list and description, may be kept by the commissioner in one of the general safes for boxes of the bank until delivered to the person whose name it bears, or may otherwise be disposed of as directed by the court.

M.G.L. c. 167, § 33 Bank aggrieved by action of commissioner; application for injunction

c. 167, § 33. Bank aggrieved by action of commissioner; application for injunction Section 33. Whenever any bank of whose property and business the commissioner has taken possession deems itself aggrieved thereby, it may, at any time within ten days after such taking possession, apply to the supreme judicial court to enjoin further proceedings; said court, after citing the commissioner to show cause why further proceedings should not be enjoined, and after hearing the allegations and proofs of the parties and determining the facts, may, upon the merits, dismiss such application or may enjoin the commissioner from further proceedings and direct him to surrender the said business and property to the bank.

M.G.L. c. 167, § 34 Stockholders' meeting

c. 167, § 34. Stockholders' meeting Section 34. Whenever the commissioner has paid to every depositor and creditor of such corporation, not including stockholders, whose claims as such creditors or depositors have been duly approved and allowed, the full amount of such claims, and has made proper provision for unclaimed and unpaid deposits or dividends, and has paid all expenses of the liquidation, he shall call a meeting of the stockholders of the corporation by mailing notice thereof, not less than thirty days prior to the date of the meeting, to each stockholder of record whose address is known, and also by publishing notice of the meeting once a week for four successive weeks in some newspaper of general circulation published in the county wherein the principal office of the corporation is located, the first publication to be not less than thirty days before the date appointed for the meeting. At such meeting the stockholders shall determine whether the commissioner shall be continued as liquidator and shall wind up the affairs of the corporation, or whether an agent or agents shall be elected therefor, and in so determining, the stockholders shall vote by ballot, in person or by proxy, each share of stock entitling the holder to one vote; and a majority of the stock shall be necessary for the determination. (If it is determined to continue the liquidation and, after paying the expenses thereof, distribute the proceeds remaining among the stockholders in proportion to their several holdings of stock, in such manner and upon such notice as may be directed by the supreme judicial court.) If it is determined to appoint an agent or agents to liquidate, the stockholders shall thereupon select such agent or agents by ballot, a majority of the stock present and voting, in person or by proxy, being necessary to a choice. Such agent or agents shall execute and file with the commissioner a bond to the state treasurer in such amount, with such sureties and in such form as shall be approved by the commissioner, conditioned for the faithful performance of all the duties of his or their trust, and thereupon the commissioner shall transfer and deliver to such agent or agents all undivided, uncollected or other assets of the corporation then remaining in his hands. Upon such transfer and delivery, the commissioner shall be discharged from all further liability to such corporation. Said agent or agents shall convert into cash the assets coming into his or their possession and shall account for and make distribution of the property of the corporation as provided in the case of distribution by the commissioner, except that the expenses thereof shall be subject to the direction and control of the supreme judicial court. In case of the death, removal or refusal to act of any such agents, the stockholders, on the like notice to be given by the commissioner upon proof of such death, removal or refusal to act being filed with him, and by the like vote hereinbefore provided, may elect a successor who shall have the same powers and be subject to the same liabilities and duties as the agent originally elected.

M.G.L. c. 167, § 35 Unclaimed dividends and funds

c. 167, § 35. Unclaimed dividends and funds Section 35. Unclaimed dividends and all other funds received from the liquidation of any institution, so taken possession of, and remaining in the possession of the commissioner after the expiration of twelve months from the order for final distribution, shall be paid by him to the state treasurer, to be held in trust, subject to the conditions hereinafter provided, for the several depositors with the creditors of such institution or other persons entitled thereto, according to their several interests. The commissioner shall state, annually, in his report to the general court the names of institutions so taken possession of and liquidated and the amounts of unclaimed dividends and other funds held by him with respect to every such institution. Upon certification by the commissioner that he has been furnished satisfactory evidence of their right to the same, the state treasurer shall pay over the money so held by him to the persons respectively entitled thereto. In cases of doubt or of conflicting claims, the commissioner may require an order from the supreme judicial court authorizing and directing payment, and any expenses incurred in connection therewith shall be deducted before payment from the amount payable. At the expiration of six years from the date of receipt by the state treasurer from the commissioner of any such unclaimed dividends or other funds, upon certification by the commissioner that no claim thereto has been proven to his satisfaction or is pending, the same or the balance thereof then remaining, together with the interest, if any, earned thereon, shall escheat to the commonwealth.

M.G.L. c. 167, § 35A Destruction of books, records, etc. concerning bank and liquidation thereof

c. 167, § 35A. Destruction of books, records, etc. concerning bank and liquidation thereof Section 35A. After the expiration of six years from the order for final distribution, the commissioner may, with the approval of the supreme judicial court, cause to be destroyed any or all of the books, records, correspondence and other papers in his possession concerning any such bank and the liquidation thereof.

M.G.L. c. 167, § 35B Reports on banks in possession of commissioner

c. 167, § 35B. Reports on banks in possession of commissioner Section 35B. The commissioner shall, while any such bank is in his possession, issue, from time to time, at intervals of not more than six months, reports with respect to such bank containing a statement of its receipts and expenditures, and a general report as to the progress of its liquidation, including an estimate of the liquidating value of its remaining assets and liabilities appropriately classified. Said reports shall be available to the depositors and to the stockholders or shareholders, if any, of such bank.

M.G.L. c. 167, § 36 Equity jurisdiction of supreme judicial court

c. 167, § 36. Equity jurisdiction of supreme judicial court Section 36. The supreme judicial court, or any justice thereof, shall have jurisdiction in equity to enforce the provisions of sections twenty-two to thirty-five B, inclusive, and to act upon all applications and in all proceedings thereunder.

M.G.L. c. 167, § 36A Appointment of conservator; powers and duties; compensation; termination; equity jurisdiction of supreme court

c. 167, § 36A. Appointment of conservator; powers and duties; compensation; termination; equity jurisdiction of supreme court Section 36A. In addition to all other powers conferred upon the commissioner by law, whenever said commissioner considers it necessary to conserve the assets of any bank for the benefit of the depositors and creditors thereof, said commissioner may, under his hand and official seal, appoint a conservator for such bank, and require of such conservator such bond and security as said commissioner may consider proper. A certificate of the appointment of such conservator shall forthwith be filed in the office of said commissioner. The conservator, with the approval of said commissioner, may procure such expert assistance and advice as necessary in the administration of the affairs of such bank and with like approval may retain such of the officers and employees of such bank as said conservator considers necessary. The conservator, under the direction and subject to the control of said commissioner, shall take possession forthwith of the property and business of such bank and take such action necessary to carry on its business and to conserve its assets, pending further disposition thereof, as provided by law. Upon taking possession of the property and business of a bank, the conservator shall forthwith give notice thereof to all persons holding or having possession of any assets of such bank. No bank, trust company, association, firm or individual, knowing that a conservator has taken such possession, or having been notified thereof as aforesaid, shall have a lien or charge for any payment advance or clearance thereafter made, or liability thereafter incurred, against any of the assets of the bank of whose property and business the conservator shall have taken possession as aforesaid, except as otherwise provided in this section. During the time such conservator remains in possession of such bank the rights of all parties with respect thereto shall, subject to the other provisions of this section, be the same as if said commissioner had taken possession of such bank. Such conservator, subject to such orders, rules and regulations as may be prescribed from time to time by said commissioner, may collect moneys due to the bank, and do all acts necessary to continue its business or to conserve its assets. Such conservator shall collect all debts due and claims belonging to it, and with the approval of the commissioner, may sell or compound all bad or doubtful debts, and on like approval may sell all, or any part of, the real and personal property of the bank on such terms as said commissioner shall approve; and, in the name of such bank may take a mortgage on such real property from a bona fide purchaser to secure the whole or a part of the purchase price, upon such terms and for such periods as said commissioner may approve. To execute and perform the powers and duties conferred upon him, the conservator may, in the name of any such bank prosecute and defend all suits and other legal proceedings and may, in the name of the bank, execute, acknowledge and deliver all deeds, assignments, releases and other instruments necessary and proper to effectuate any sale of real or personal property or any compromise approved by the commissioner; and any deed or other instrument executed pursuant to the authority hereby given, shall be valid and effective for all purposes to the same extent as though executed by the officers of the bank by authority of its board of directors or of its stockholders. Such conservator, and his assistants, shall be subject to all the penalties, and except as provided in this section to all other provisions of law, to which agents appointed by said commissioner for the purpose of liquidating the affairs of a bank are subject. While a bank in the hands of a conservator, said commissioner may require the conservator to set aside and make available for withdrawal by depositors and for payment to other creditors such amounts or proportions of their deposits or claims in any department thereof as said commissioner may deem necessary or expedient and may authorize the conservator to receive new deposits, as provided in section 3 of chapter 59 of the acts of 1933. Whenever any bank shall have resumed business with or without a reorganization, or whenever said commissioner shall have taken possession of its property or business as provided in section 22 of chapter 167, the provisions of section 3 of chapter 59 of the acts of 1933 with respect to the segregation of new deposits received under this section shall no longer apply and the deposits received thereunder shall be disposed of in such manner as said commissioner shall direct, unless the owner of any such deposit, within 15 days after notice given by the conservator or the commissioner in such manner as said commissioner shall prescribe, shall have withdrawn the same. The compensation of the conservator and of counsel, employees and assistants and all other expenses of such conservatorship, including costs and expenses incurred by said commissioner in relation to such bank, shall be fixed by said commissioner and approved by the governor and paid out of the funds of such bank; provided, however, that the compensation paid the conservator shall in no event be at a higher rate than the highest salary established in said bank and that the total payroll of the bank at the time of the appointment of the conservator shall not be increased by reason of such compensation; and provided, further, that said commissioner may, subject to approval of the governor, upon the written request of any such bank increase the compensation of the conservator for good cause to an amount not to exceed an additional 50 per cent of the compensation paid to the chief executive officer of that bank. If said commissioner is satisfied that it may be safely done and that it would be in the public interest, he may terminate the conservatorship and permit such bank to resume business subject to such terms, conditions, restrictions or limitations as he may prescribe. Nothing contained in this section shall, unless otherwise expressly provided herein, be deemed to abridge any power or authority to take possession of a bank conferred upon said commissioner by this chapter or any power or authority conferred by any other provision of law. The supreme judicial court, or any justice thereof, shall have jurisdiction in equity to enforce the provisions of this section, and to act upon all applications and in all proceedings thereunder.

M.G.L. c. 167, § 37 Unauthorized banking

c. 167, § 37. Unauthorized banking Section 37. No domestic or foreign corporation or individual, partnership or association shall conduct the business of a savings bank, co-operative bank, savings and loan association, credit union, trust company or banking company unless authorized to do so under the laws of this commonwealth nor shall any such corporation, individual, partnership or association, unless so authorized under said laws, make use of any sign at the place where its business is transacted having thereon any name or other words indicating that such place or office is the place or office of a savings bank, co-operative bank, savings and loan association, credit union, trust company or banking company or make use of or circulate any written or printed or partly written or partly printed paper whatever, having thereon any name or other words indicating that such business is that of a savings bank, co-operative bank, savings and loan association, credit union, trust company or banking company; nor shall any such corporation, individual partnership or association or any agent of any of these not having a charter to do business as a savings bank, co-operative bank, savings and loan association, credit union, trust company or banking company, unless authorized to do so under the laws of the commonwealth, solicit or receive deposits or transact any business whatsoever in the manner described in chapter one hundred and sixty-seven, chapters one hundred and sixty-seven C to one hundred and sixty-seven G, inclusive, and chapters one hundred and sixty-eight to one hundred and seventy-two A, inclusive, in any manner so as to lead the public to believe or, in the opinion of the commissioner, might lead the public to believe that its business is that of a bank. No domestic or foreign corporation or individual, partnership or association other than corporations excepted from the prohibitions contained in the first sentence of this section and corporations qualifying as bank holding companies under chapter one hundred and sixty-seven A and other than foreign banking associations authorized under section thirty-seven to transact business in this commonwealth and national banking associations shall hereafter transact business under any name or title which contain the words ''bank'', ''banking'', ''bankers'', or any word in a foreign language having the same or similar meaning, as descriptive of said business or, if he or it does a banking business or makes a business of receiving money on deposit, under any name or title containing the word ''trust'', or any word in a foreign language having the same or similar meaning as descriptive of said business. The provisions of this section which prohibit the transacting of business under a name or title which contains the word ''bankers'' shall not apply to domestic corporations incorporated prior to January first, nineteen hundred and sixty-five, whose corporate name or title contained the word ''bankers'' prior to such date. Notwithstanding any general or special law to the contrary, a person, domestic or foreign corporation, partnership, association, limited liability company or similar entity shall not use the name, trade name or trademark of any bank, federal bank, federal branch, foreign bank, out-of-state bank or out-of-state branch or out-of-state federal bank, as defined in section 1, or any federal credit union as defined in section 1 of chapter 171, or any subsidiary thereof, in any written or oral advertisement or solicitation for products or services, without the express written consent of the financial institution. For the purposes of this section, the word ''advertisement'' or ''solicitation'' shall mean an email, direct mail solicitation, or oral solicitation to a specifically identified consumer or which contains specific information on the account or loan of a specifically identified consumer. A person, domestic or foreign corporation, partnership, association, limited liability company or similar entity shall not make reference to an existing bank, federal bank, federal branch, foreign bank, out-of-state bank, out-of-state branch, out-of-state federal bank as defined in section 1 of this chapter, or federal credit union as defined in section 1 of chapter 171, or any subsidiary thereof, without the express written consent of the bank, federal bank, federal branch, foreign bank, out-of-state bank, out-of-state branch, out-of-state federal bank or federal credit union, or any subsidiary thereof, or make reference to a loan number, loan amount or other specific loan information on the outside of an envelope, visible through the envelope window, or on a postcard in connection with any written solicitation or an email for products or services to a specifically identified consumer. A person, domestic or foreign corporation, partnership, association, limited liability company, or similar entity shall not include a loan number, loan amount or other specific loan information relative to a specifically identified consumer that is publicly available in a written or oral solicitation for the purchase of products or services unless the solicitation clearly and conspicuously states in bold-face type on the front page of the correspondence that the person, domestic or foreign corporation, partnership, association, limited liability company or similar entity is not sponsored by or affiliated with and that the solicitation is not authorized by the bank, federal bank, federal branch, foreign bank, out-of-state bank, out-of-state branch, out-of-state federal bank as defined in section 1, or federal credit union as defined in section 1 of chapter 171, or any subsidiary thereof. The statement shall include the name, address and the telephone number of the person making the solicitation and that any loan information referenced was not provided by the bank, federal bank, federal branch, foreign bank, out-of-state bank, out-of-state branch, out-of-state federal bank or federal credit union, or any subsidiary thereof. The statements required in this paragraph shall also be given at the time of any oral solicitation to a specifically identified consumer. A person, domestic or foreign corporation, partnership, association, limited liability company, association or similar entity, which is considered to have violated this section, shall be considered to have engaged in an unfair and deceptive practice and shall be a violation of chapter 93A. A bank, federal bank, federal branch, foreign bank, out-of-state bank or out-of-state branch, or out-of-state federal bank, as defined in section 1, and any federal credit union as defined in section 1 of chapter 171, or any subsidiary thereof, that has had its name, trade name, or trademark used in violation of this section may in addition to any other remedy provided by law, bring an action in the superior court in which venue the financial institution has an office to enjoin an act in violation of this section and recover damages. The court shall award damages in the amount of actual damages or $10,000 per violation, whichever is greater. In any successful action for injunctive relief or for damages, the court shall award the financial institution or its subsidiary, attorney's fees and costs, including court costs.

M.G.L. c. 167, § 37A Examination of accounts, books and papers to determine violation of Sec. 37

c. 167, § 37A. Examination of accounts, books and papers to determine violation of Sec. 37 Section 37A. The commissioner or his examiners may examine the accounts, books and papers of any corporation, person, partnership or association he or his examiners believe is violating the preceding section or who is making a business of receiving money on deposit, or which has the word ''bank'', ''banking'', ''banker'', ''bankers'', or ''trust'', or any word in a foreign language having the same or similar meaning, in the name under which its business is conducted, in order to ascertain whether such corporation, person, partnership or association has violated or is violating any provision of the preceding section; any corporations, person, partnership or association refusing to allow such examination or violating any provision of said section shall forfeit to the commonwealth one hundred dollars a day for every day or part thereof during which such refusal or violation continues. Any violation of this or the preceding section shall forthwith be reported by the commissioner to the attorney general. The said forfeiture may be recovered by any information or other appropriate proceeding brought in the supreme judicial or superior court in the name of the attorney general. Upon such information or other proceeding the court may issue an injunction restraining such corporation, person, partnership or association from further prosecution of its business within the commonwealth during the pendency of such proceeding or for all time, and may make such other orders or decrees as equity and justice may require. Any corporation, person, partnership, or association found by the commissioner to be violating or to have violated this or section twelve shall bear the expenses of the examination made by the commissioner, including the actual cost thereof and such additional sum for the overhead expenses of the division of banks and loan agencies as the commissioner shall determine to be attributable to such examination to be recovered in an action of contract brought by the attorney general in behalf of the commonwealth.

M.G.L. c. 167, § 37B Student bank programs

c. 167, § 37B. Student bank programs Section 37B. A bank, federal bank, federal credit union or a foreign bank, out-of-state bank and out-of-state federal bank with a branch office in the commonwealth may establish educational bank training programs, student savings deposit programs and school branch office programs. A bank or foreign bank or out-of-state bank with a branch office in the commonwealth shall conduct the program under terms and conditions as the commissioner determines. A federal bank, federal credit union or out-of-state federal bank with a branch office in the commonwealth shall conduct the program in compliance with applicable federal law and regulations.

M.G.L. c. 167, § 38 Repealed, 2014, 482, Sec. 20

M.G.L. c. 167, § 38A Repealed, 1982, 626, Sec. 2

M.G.L. c. 167, § 39 Repealed, 2014, 482, Sec. 20

M.G.L. c. 167, § 39A Repealed, 1982, 626, Sec. 2

M.G.L. c. 167, § 39B, 39C Repealed, 2014, 482, Sec. 20

M.G.L. c. 167, § 40 Examination of foreign or out-of-state banks; charges; availability of reports and information; cooperation with other jurisdictions

c. 167, § 40. Examination of foreign or out-of-state banks; charges; availability of reports and information; cooperation with other jurisdictions Section 40. The commissioner shall, in the manner prescribed in section two, examine every foreign bank authorized to do a banking business in the commonwealth pursuant to section thirty-eight and conducting such business pursuant to section thirty-nine and any out-of-state bank which operates a Massachusetts branch and shall inspect and examine the affairs of any such foreign or out-of-state bank, to the extent of its operations in the commonwealth, to ascertain its financial condition and whether it has complied with all applicable law. The lawful charges incurred by reason of any such examination shall be paid by the bank examined. The commissioner shall preserve a full record of each such examination. Such records and information contained in the report of any such examination, other than information required by law to be published or to be open to the inspection of the public, shall be open only to the inspection of the commissioner, his examiners and assistants, and such other officers of the commonwealth as may have occasion and authority to inspect them in the performance of their official duties. Nothing in this section shall be construed to prohibit the required production of such records, and information contained in examination reports, before any court of this commonwealth or any master or auditor appointed by any such court, in any criminal or civil proceeding therein pending, affecting such Massachusetts or out-of-state branch, its officers, directors or employees. Copies of reports of such examinations shall be furnished to the parent bank of the branch examined for its use only and shall not be exhibited to any other person, organization or agency without the prior written approval of the commissioner. The commissioner may, in his discretion, furnish to the chief national bank examiner, the Federal Reserve Bank of Boston, the Federal Deposit Insurance Corporation, the Depositors Insurance Fund, the Cooperative Central Bank, the Massachusetts Credit Union Share Insurance Corporation, the National Credit Union Administration, the federal Bureau of Consumer Financial Protection, or any successor to such entities, any other bank regulatory or law enforcement agency, or the banking departments of other states or foreign countries, such information, reports and statements relating to the institutions under his supervision as he deems appropriate. Notwithstanding the foregoing, the commissioner may enter into cooperative agreements with bank regulators in jurisdictions other than the commonwealth to facilitate the regulatory supervision of Massachusetts and out-of-state branches including agreements relative to the coordination of examinations or joint participation in examinations of said branches, and may accept reports of examinations by such regulators pursuant to such agreements. The commissioner may also enter into such agreements providing for enforcement actions against Massachusetts and out-of-state branches. Any such agreement may include provisions relative to the amount and assessment of fees for any such examination or enforcement actions. Nothing in this section shall be construed as limiting in any way the authority of the commissioner to independently conduct examinations of and enforcement actions against any Massachusetts or out-of-state branch.

M.G.L. c. 167, § 40A Registration with commissioner; reports

c. 167, § 40A. Registration with commissioner; reports Section 40A. Each foreign bank, out-of-state bank and out-of-state federal bank which operates a Massachusetts branch shall register with the commissioner on forms prescribed by him which shall include such information with respect to the financial condition, operations, and management of such bank and related matters as he may deem necessary or appropriate to carry out the purposes of this chapter. The commissioner, from time to time, may require reports under oath to keep him informed as to whether the provisions of this chapter and the rules and regulations established thereunder have been complied with.

M.G.L. c. 167, § 41 Access to vaults, books and papers; summoning witnesses; administering oaths

c. 167, § 41. Access to vaults, books and papers; summoning witnesses; administering oaths Section 41. For the purposes of section forty, the commissioner or the person making the examination shall have free access to the vaults, books and papers of any such foreign bank and out-of-state bank, and may summon the directors, officers or agents thereof, and such other witnesses as deemed necessary for examination relative to the affairs, transactions and condition of such banks, and for that purpose is empowered to administer oaths.

M.G.L. c. 167, § 42 Insolvent foreign or out-of-state banks; injunction

c. 167, § 42. Insolvent foreign or out-of-state banks; injunction Section 42. If, upon examination, it appears that any such foreign bank or out-of-state bank is insolvent, or that its capital is impaired, or that its condition is such as to render the continuance of business hazardous to the public or to those having funds in its custody, the commissioner shall apply, or if any such bank appears to have exceeded its powers or failed to comply with any provision of applicable law, may apply to the supreme judicial court, which shall have jurisdiction in equity on such application, to issue an injunction restraining any such bank, in whole or in part, from further proceeding with its business, and to make further orders or decrees as justice and equity may require. The court may appoint one or more receivers to take possession of its property and effects, subject to such directions as may from time to time be prescribed by the court.

M.G.L. c. 167, § 44 to 45A Repealed, 1982, 626, Secs. 1, 2

M.G.L. c. 167, § 46 Honoring and cashing of pensioners' and retirees' checks

c. 167, § 46. Honoring and cashing of pensioners' and retirees' checks Section 46. Every bank doing business in the commonwealth, which for the purposes of this section shall include any bank, except an internet bank as defined in section one and any national bank, national banking association, federal savings bank, federal savings and loan association and federal credit union, shall honor and cash a check presented by a pensioner or retiree, whether or not such person has an account in such bank, if the following conditions are met: (a) the said pensioner or retiree is a resident of the commonwealth; (b) the said pensioner or retiree provides adequate information for identification purposes and is registered with such bank; (c) any such check has been issued to the pensioner or retiree presenting the same as a social security, supplemental security income, supplemental security income for aged, blind, and disabled or retirement benefit by the federal government or any agency thereof, or by the commonwealth or any agency or political subdivision thereof; and (d) any such check is for an amount not exceeding two thousand and five hundred dollars. The commissioner, by regulation, shall establish a procedure to be employed by any bank, as defined in section one, whereby pensioners or retirees may be registered therewith for the purpose of having such checks cashed. The regulations shall require, but need not be limited to, the following: (1) every such bank shall provide for the registration in its main office and any branch thereof of any pensioner or retiree requesting the same by means of an application card containing the application date and the name, address, date of birth, social security number and handwritten signature of the applicant as well as any other information which the commissioner may deem necessary, or by any other method and under such conditions as the commissioner may approve; (2) every such bank shall have the authority to verify all information required to be submitted to effect such registration; (3) upon verification, which shall be completed within thirty days of the receipt of such application, the applicant pensioner or retiree shall be so registered and shall be forthwith provided by the bank with an identification card, in such form as the commissioner may approve, entitling him to such check cashing privileges; (4) the presentation of any such check for cashing shall be restricted to the office or branch of any such bank in which the registration of the said pensioner or retiree was effected; and (5) every such bank may assess a charge for processing the said application and issuing the said identification card in an amount equal to the actual cost incurred therefor as determined by the commissioner to be fair and equitable, and no other charge shall be assessed for such check cashing purposes. Any bank which fails to cash any such check of a pensioner or retiree registered therewith in accordance with this section or which otherwise violates the provisions of this section or any regulations promulgated thereunder shall be punished by a fine of not more than five hundred dollars for each such violation.

M.G.L. c. 167, § 47 Repealed, 2010, 234, Sec. 1

M.G.L. c. 167, § 48 Financing of premises containing lead in paint, plaster or materials

c. 167, § 48. Financing of premises containing lead in paint, plaster or materials Section 48. No bank, lending institution, credit union or mortgagee pursuant to applicable law, or mortgagee doing business in the commonwealth, which for the purposes of this section shall include any bank as defined in section one and shall include any national bank, national banking association, federal savings bank, federal savings and loan association, and federal credit union, or mortgage company defined in chapter two hundred and fifty-five E shall discriminate in any manner in the financing or refinancing of the purchase, improvement, repair or maintenance of a residential premises or dwelling unit solely because the residential premises do or may contain paint, plaster, or other structural materials containing dangerous levels of lead. Any such bank, lending institution, credit union, mortgage company or mortgagee may request and receive a copy of any lead inspection report, letter of interim control, poisoning prevention management plan, letter of full compliance or order to comply issued under the provisions of section one hundred and ninety-four or one hundred and ninety-seven of chapter one hundred and eleven or regulations promulgated thereunder which is in the possession of either the loan applicant or seller, as a condition of processing or granting the loan. Nothing contained in this section shall restrict the right of any such bank, lending institution, credit union, mortgage company or mortgagee to process or deny a mortgage or loan application in accordance with accepted underwriting practices or criteria.

M.G.L. c. 167, § 49 Definitions applicable to Secs. 49 to 51

c. 167, § 49. Definitions applicable to Secs. 49 to 51 Section 49. Whenever used in this section, and sections 50 and 51, the following words shall, unless the context requires otherwise, have the following meanings: ''Appropriate corrective action'', action taken by the board of directors or trustees of a bank pursuant to findings contained in a compliance review document in accordance with 12 CFR 202.15. ''Compliance review document'', a report prepared for and at the direction of the compliance review supervisor or created by said supervisor, and certified by said supervisor, detailing the results of any self testing program together with recommendations, if any, for appropriate corrective action. ''Compliance review supervisor'', an employee, officer or director of a bank appointed by the board of directors or trustees of such bank to supervise the self testing programs hereinafter defined. ''Fair lending laws'', any federal or state law, rule or regulation which expressly regulates the equal availability of credit including, but not limited to, applicable provisions of chapter 151B and the Federal Equal Credit Opportunity Act. ''Self testing'', any program or study relating to the practice of using fictitious applicants for credit, so-called, ''matched pairs'', and Regression Analysis, that a bank voluntarily conducts or authorizes a third party to conduct to test for distinctions in treatment or discrimination based on any prohibited basis as defined under the applicable sections of chapter 151B or the Federal Equal Credit Opportunity Act, including but not limited to, race, ethnic background or gender at the pre-application and application stage of the residential mortgage lending process.

M.G.L. c. 167, § 50 Compliance review supervisor

c. 167, § 50. Compliance review supervisor Section 50. A bank, by vote of its board of directors or trustees, may appoint a compliance review supervisor to conduct self testing programs on a continuing basis. Upon any such appointment, such board of directors or trustees forthwith shall file with the commissioner the name of the person so appointed. For the purpose of conducting such self testing programs, such supervisor may utilize the services of departments and other employees and officers of the bank and, with the approval of such board of directors or trustees, third-party contractors. The results of any such self testing program, together with all documents and materials relevant thereto, shall be certified by such supervisor as a compliance review document and shall be the property of the bank. The supervisor shall transmit said document to the board of directors or trustees for its review and appropriate corrective action, whenever the same is deemed to be required. Any such compliance review document, together with a statement signed by the directors or trustees detailing appropriate corrective action, if any, taken in consequence thereof, shall be provided to the commissioner during the course of any examination of the bank conducted by him pursuant to section 2.

M.G.L. c. 167, § 51 Compliance review documents; confidentiality

c. 167, § 51. Compliance review documents; confidentiality Section 51. Except as provided in section 50, the proceedings of the compliance review supervisor and the contents of any compliance review document shall, notwithstanding any other law or regulation to the contrary, remain confidential and shall not be discoverable or admissible in evidence in any civil proceeding, except an enforcement proceeding brought under state law by the appropriate federal or state regulator of the bank, arising out of or related to any self testing programs conducted by such supervisor. A person who assists in any such program or who prepares, reviews or receives such compliance review document shall not be required to give testimony in any civil proceeding, except such enforcement proceeding by such federal or state regulator, as to any matters concerning the contents of any such compliance review document. Any evidence elicited from any such person relative thereto shall, except for said exception, be inadmissible in any such civil proceeding brought under state law. The provisions of this section shall not apply to any such compliance review document if, after the receipt of a compliance review document from the compliance review supervisor, the board of directors or trustees of the bank: (a) fails to take appropriate corrective action, unless a reasonable good faith determination has been made in writing by said directors that such action is not required; or (b) voluntarily discloses all or any part of the details or conclusions of said compliance review document to an applicant or to the public, or otherwise uses the same as a defense to charges that the bank has violated any fair lending law; provided, however, that the disclosure to an applicant or to the public that the bank has a self testing program in existence or the release of said compliance review document to the commissioner or the bank's primary federal regulator shall not be deemed to be a voluntary disclosure for this purpose. The provisions of this section shall not apply to any information required by law or regulation to be maintained by or provided to a governmental agency while such information is in the possession of such agency to the extent that applicable law authorizes or requires its disclosure. Nothing in this section shall be construed so as to limit the discovery or admissibility into evidence in any civil action of documents that have not been certified as compliance review documents.

M.G.L. c. 167, § 43, 43A Repealed, 2014, 482, Sec. 22

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter167Fetched: 10/20/2026