BANK LOCATIONS

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

in effect

M.G.L. c. 167C, § 1 Definitions

c. 167C, § 1. Definitions Section 1. As used in this chapter, the following words shall, unless the context clearly requires otherwise, have the following meanings:— ''Bank'', an association or corporation chartered by the commonwealth under chapter 168, 170 and 172. ''Commissioner'', the commissioner of banks. ''Electronic branch'', an electronic device, other than a telephone operated by a consumer, through which a consumer may initiate an electronic fund transfer, including, but not limited to, automated teller machines and cash dispensing machines; provided, however, that ''electronic branch'' shall not include a teller machine or similar device located on the premises of and operated solely by an employee of a financial institution or a point-of-sale terminal; provided, further that an ''electronic branch'' shall not be considered a main office or a branch office. ''Financial institution'', a bank, federal bank, foreign bank, out-of-state bank, out-of-state federal bank or any other person who (a) directly or indirectly holds an account belonging to a consumer or (b) issues an access device and agrees with a consumer to provide electronic fund transfer services. ''Foreign bank'', an association or corporation authorized to do a banking business in the commonwealth, the main office of which is located outside the commonwealth and which exists by authority of a country other than the United States. ''Governing board'', the board of directors, the board of trustees or similar board of a bank. ''Organization'', any person, corporation, association or partnership which assists or provides services to a financial institution or merchant in order to make available electronic fund transfers; provided, however, that a financial institution or merchant shall not be considered an organization. ''Out-of-state bank'', an association or corporation authorized to do a banking business in the commonwealth, the main office of which is located outside the commonwealth and which exists by the authority of a state of the United States except the commonwealth. ''Out-of-state branch'', a branch of a 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. ''Point-of-sale terminal'', an electronic terminal located on the premises of a merchant when such terminal is used with the assistance of an employee of a merchant for a customer's purchase or lease of goods or services sold or leased by such merchant or adjustments thereto or the receipt of cash by the customer which is ancillary to the customer's purchase or lease of goods or services from such merchant; provided, however, that such terminal shall be deemed an electronic branch for the purposes of this chapter whenever it is used for any other electronic fund transfer, or for an electronic fund transfer involving a customer's account held by an organization, or for an electronic fund transfer solely for customers of a single financial institution or bank holding company subject to chapter 167A or the federal Bank Holding Company Act of 1956, 12 U.S.C. section 1841 et seq.

M.G.L. c. 167C, § 2 Main office; change of location

c. 167C, § 2. Main office; change of location Section 2. The main office of a bank shall be in the town specified in its charter or in its agreement of association or in such other town to which the office has been lawfully moved or to which it may be moved as provided in this section. The location of the main office of a bank may be changed to a point in the town of its location or to another town within the commonwealth with the written consent of the commissioner. The business conducted by a bank at its main office shall include not less than 1 of the following transactions: receiving deposits; paying withdrawals; or making loans.

M.G.L. c. 167C, § 3 Branch offices or depots

c. 167C, § 3. Branch offices or depots Section 3. A bank which has received a rating of satisfactory or higher in its most recent examination pursuant to section 14 of chapter 167 and which is adequately capitalized, and has not been notified that it is in troubled condition, may establish and maintain 1 or more branch offices or depots in a city or town within the commonwealth upon at least 60 days written notice in advance thereof to the commissioner; but, if in the opinion of the commissioner, the public would not benefit by the establishment of the additional banking facilities or that competition among banking institutions would be adversely affected thereby, he may disapprove the same in writing within the 60–day period. A bank, national banking association, federal savings and loan association or federal savings bank located in the commonwealth, the majority of shares of the voting stock of which is owned by a bank holding company pursuant to chapter 167A, 167H, or 12 USC 1841 et seq., if the main office of such company is located in the commonwealth, may transact with a customer business which pertains to the customer's accounts maintained at any other bank located in the commonwealth the majority of the voting shares of which is owned by the same bank holding company in like manner. With the written consent of the commissioner and under procedures as he may require, a branch office or depot may be closed or its location may be changed; but before approving the closing or relocation, the commissioner shall determine that the area served by the branch office or depot will not be adversely affected thereby. In making that determination, the commissioner shall consider the effects of the closing as it relates to the availability of credit in the area, the convenience and necessity of deposit services therein, and other factors he considers appropriate. The business at a depot shall be transacted only on the days designated by the governing board thereof, and shall be limited to the receipt of deposits and collection of moneys due or payable to the bank, and the business shall be subject to such other conditions, prescribed by the commissioner.

M.G.L. c. 167C, § 4 Mobile branch banking

c. 167C, § 4. Mobile branch banking Section 4. The commissioner may authorize a bank to conduct mobile branch banking subject to this chapter in any county in the commonwealth in which the bank has its main office or a branch office under conditions as he may approve and in accordance with regulations he may establish for the purpose.

M.G.L. c. 167C, § 5 Investigation fees; classifications and differentiations of banks

c. 167C, § 5. Investigation fees; classifications and differentiations of banks Section 5. Every notice or application to change the location of the main office to establish and maintain 1 or more branch offices or depots, or to change the location or close 1 or more branch offices or depots shall be accompanied by payment of an investigation fee, the amount of which shall be determined annually by the commissioner of administration under section 3B of chapter 7 of the General Laws. To determine the investigation fee to establish a branch office, the commissioner of administration may make such classifications and differentiations of banks and may provide adjustments to the fee as are necessary; provided, however, that such classifications and differentiations may be based on: (i) the asset size of the bank; (ii) the number of existing branch offices of the bank; or (iii) other criteria as determined by the commissioner of administration; provided further, that the fee shall be consistent with and equal to the amount of the investigation fee to establish a branch office imposed on credit unions in section 8 of chapter 171.

M.G.L. c. 167C, § 6 Establishment of branch by bank through merger or consolidation with or purchase of foreign, out-of-state or out-of-state federal bank

c. 167C, § 6. Establishment of branch by bank through merger or consolidation with or purchase of foreign, out-of-state or out-of-state federal bank Section 6. A bank, upon approval by the commissioner of an application therefor in prescribed manner and form and in accordance with applicable law, may establish and maintain branches through a merger or consolidation with or by the purchase of the whole or any part of the assets or stock of a foreign bank, out-of-state bank or out-of-state federal bank. A request for the approval by the commissioner shall be accompanied by an investigation fee the amount of which shall be determined annually by the secretary of administration and finance pursuant to section 3B of chapter 7. The offices of a foreign bank, out-of-state bank or out-of-state federal bank merged or consolidated with or whose assets or stock were purchased pursuant to this section, may be maintained as branch offices of the bank; provided, however, the resulting branch outside the commonwealth shall be considered to be an out-of-state branch and subject to the supervision of the commissioner and the applicable laws of the jurisdiction in which the out-of-state branch is located.

M.G.L. c. 167C, § 7 Branch de novo in foreign state or country

c. 167C, § 7. Branch de novo in foreign state or country Section 7. A bank, with the approval of and under conditions imposed by the commissioner, may establish a branch de novo in a state of the United States other than the commonwealth or in a foreign country in accordance with the laws of the state or foreign country, and may exercise the powers at the branch de novo as are permitted to banks existing by the authority of the jurisdiction in which the branch is located, unless the commissioner determines that the exercise of the powers is unsafe or unsound.

M.G.L. c. 167C, § 8 Cooperative agreements with other jurisdictions for regulatory supervision of branches

c. 167C, § 8. Cooperative agreements with other jurisdictions for regulatory supervision of branches Section 8. Notwithstanding any other law to the contrary, the commissioner may enter into a cooperative agreement with bank regulators in jurisdictions other than the commonwealth to facilitate the regulatory supervision of Massachusetts and out-of-state branches including an agreement relative to the coordination of examinations or joint participation in examinations of the branches, and may accept reports of examinations by the regulators pursuant to the agreement. The commissioner may also enter into an agreement providing for enforcement actions against Massachusetts and out-of-state branches. The agreement may include provisions relative to the amount and assessment of fees for an examination or enforcement action. Nothing in this section shall be construed to limit the authority of the commissioner to independently conduct examinations of and enforcement actions against a branch.

M.G.L. c. 167C, § 9 Bank as agent for another banking institution

c. 167C, § 9. Bank as agent for another banking institution Section 9. A bank may receive deposits, renew time deposits, close loans, service loans, and receive payments on loans and other obligations in the commonwealth or in any other state as an agent for another banking institution, whether located within the commonwealth or in another state. The banking institution acting as such agent shall not be considered to be a branch of the principal banking institution. A banking institution acting as such agent shall not conduct an activity which it would be prohibited from conducting as a principal under a state or federal law, or, as a principal, have an agent conduct an activity which the institution would be prohibited from conducting under a state or federal law. The agency relationship shall be consistent with safe and sound banking practices and all applicable regulations of the commissioner. For the purposes of this section, a banking institution shall mean a bank, federal bank, foreign bank, out-of-state bank and an out-of-state federal bank as such terms are defined in section 1 of chapter 167.

M.G.L. c. 167C, § 12 Purchase, establishment, installation, etc. of electronic branches; location; safeguards

c. 167C, § 12. Purchase, establishment, installation, etc. of electronic branches; location; safeguards Section 12. After a vote of its governing board, a bank, except as otherwise provided in this section, may purchase, establish, install, operate, lease or use individually or with any other financial institution or organization or share with any other financial institution or organization any number of manned or unmanned electronic branches at which a customer may make deposits, withdrawals, transfers of funds, obtain advances against preauthorized lines of credit, cash checks or pay obligations and any number of point-of-sale terminals; provided, however, that withdrawals from such electronic branches, other than those located at an office of a bank, shall be made only from a demand deposit account, negotiable withdrawal order account, or statement account or against a preauthorized line of credit; and provided, further, that the bank shall have applied for and obtained the approval of the commissioner for such electronic branch, except if the electronic branch is located at the bank's office it need not have applied for or obtained such approval. The commissioner shall approve such application if, in the commissioner's opinion, such action will promote a sound banking system which provides for the needs of the people and business, encourages competition, discourages monopolies and does not ignore legislative policies. There shall be no geographical limitation on the location of electronic branches which a bank may purchase, establish, install, operate, lease or use individually or with any other financial institution or organization or share with any other financial institution or organization; provided, however, that the site location for such electronic branches, other than an electronic branch located at an office of a financial institution or in another state, shall be subject to approval by, and regulation of, the commissioner. An electronic branch may be located in a mobile unit under such conditions and limitations as the commissioner, by regulation, shall establish. A bank shall adopt and maintain safeguards to insure the safety of a customer using the electronic branch, to insure the safety of the funds, items and other information at the electronic branch and to assist in the identification of criminals. The commissioner may promulgate rules and regulations establishing minimum standards for such safeguards. Such safeguards shall be in place and operational at the time such electronic branch begins to transact business; provided, however, that such safeguards shall not apply to an electronic branch located at an office of a bank. No such electronic branch located at other than the office of a bank shall be manned or operated at any time by an employee of any financial institution, holding company of a financial institution or affiliate thereof, or any organization except on a temporary basis for the purpose of instructing operators or customers, servicing the electronic branch or for the purpose of using such electronic branch on said employee's own behalf.

M.G.L. c. 167C, § 13 Establishment of branch by out-of-state bank or out-of-state-federal-bank through merger or consolidation with or purchase of Massachusetts bank

c. 167C, § 13. Establishment of branch by out-of-state bank or out-of-state-federal-bank through merger or consolidation with or purchase of Massachusetts bank Section 13. Any out-of-state bank or out-of-state federal bank, if such bank is expressly authorized to do so by the laws under which it is organized and operates, may, upon approval by the commissioner of an application thereof in prescribed manner and form, establish and maintain branches through a merger or consolidation with or the purchase of assets or stock of any Massachusetts bank; provided, however, that in each instance the laws of the jurisdiction in which such out-of-state bank or out-of-state federal bank has its principal place of business expressly authorize, under conditions no more restrictive than those imposed by this chapter as so determined by the commissioner, a bank to exercise like authority therein. Any such out-of-state bank shall, upon any such merger or consolidation with or purchase the assets or stock of a bank, operate the same as a branch under the supervision of the commissioner and in accordance with all applicable laws which govern such activities by banks. Any out-of-state federal bank shall, upon such merger or consolidation with or purchase of assets or stock of a bank, operate the same as a branch which shall be subject to all laws of the commonwealth relative to community reinvestment, consumer protection, fair lending, establishment of intra-state branches and the application or administration of any tax or method of taxation including, but not limited to, sections 1 to 14A of chapter 93 and applicable sections of chapters 93A, 167 to 167J, inclusive, and all other applicable laws, including all rules and regulations established thereunder, and to such other laws of the commonwealth as are applicable to a national bank with its main office in the commonwealth. Any such merger, consolidation or purchase of assets shall comply with all applicable laws relative to filing requirements of out-of-state non-banking corporations doing business in the commonwealth. The commissioner shall not approve any such application if the bank sought to be acquired has been in existence for a period of less than 3 years or if, as a result thereof, the applicant would control in excess of 30 per cent of the total deposits, exclusive of foreign deposits, of all depository institutions in the commonwealth insured by the Federal Deposit Insurance Corporation, or any successor corporation thereto; provided, however, that the commissioner may waive either said age requirement or concentration limit, or both, if it is deemed that economic conditions warrant granting such waiver. For the purposes of this section, the term ''foreign deposits'' shall mean deposits received in a foreign country and deposits in Edge and Agreement subsidiaries and international banking facilities.

M.G.L. c. 167C, § 14 Establishment of branch de novo; purchase of branch without purchasing bank; applicable laws

c. 167C, § 14. Establishment of branch de novo; purchase of branch without purchasing bank; applicable laws Section 14. A foreign bank, out-of-state bank or out-of-state federal bank, if such bank does not operate a branch in the commonwealth, may, upon approval by the commissioner of an application thereof in prescribed manner and form and in accordance with the requirements of section 13, establish and maintain a branch de novo in the commonwealth or may purchase a branch of a bank without purchasing the bank; provided, however, that in each instance the laws of the jurisdiction in which such bank has its principal place of business shall expressly authorize, under conditions no more restrictive than those imposed by this chapter as so determined by the commissioner, a bank to establish therein a branch de novo or to acquire a branch of a bank without acquiring the bank. Any foreign bank or out-of-state bank shall operate the same as a branch under the supervision of the commissioner in accordance with all applicable laws which govern such activities by banks. Any out-of-state federal bank shall operate the same as a federal branch which shall be subject to all laws of the commonwealth relative to community reinvestment, consumer protection, fair lending, establishment of intra-state branches and the application or administration of any tax or method of taxation including, but not limited to, sections 1 to 14A, inclusive, of chapter 93, and the applicable sections of chapters 93A, 167 to 167J, inclusive, and any other applicable laws, including all rules and regulations promulgated thereunder, and to such other laws of the commonwealth as are applicable to a national bank with its main office in the commonwealth.

M.G.L. c. 167C, § 15 Foreign banks; certificate to transact business; housing partnership fund

c. 167C, § 15. Foreign banks; certificate to transact business; housing partnership fund Section 15. No foreign bank shall transact a banking business in the commonwealth unless authorized under this chapter. The commissioner may grant a certificate authorizing a foreign bank to transact banking business in the commonwealth in accordance with this section. The commissioner may condition said certificate upon the performance of auditing requirements and shall require all applications to be accompanied by an investigation fee, the amount of which shall be determined annually by the secretary of administration and finance pursuant to section 3B of chapter 7, but shall not be less than $10,000. Any foreign bank transacting banking business in the commonwealth pursuant to such certificate shall be subject to the commissioner and shall comply with all laws of the commonwealth applicable to a bank. In deciding whether or not to issue such certificate, the commissioner shall determine whether the applicant is adequately capitalized, as defined in the Federal Deposit Insurance Act, 12 U.S.C. section 1831o, whether competition among banking institutions will be unreasonably affected and whether public convenience and advantage will be promoted. In making such determination, the commissioner shall, at a minimum, consider the applicant's record of compliance with all applicable community reinvestment requirements and require a showing of net new benefits. For the purposes of this section, the term ''net new benefits'' shall include initial capital investments, job creation plans, consumer and business services, including small business loans, farm loans, commitments to maintain and open branch offices within a bank's delineated local community, as such term is used within section 14 of chapter 167 and such other matters as the commissioner may deem necessary or advisable. The commissioner shall not issue such certificate until the commissioner has received notice from the Massachusetts Housing Partnership Fund established by section 35 of chapter 405 of the acts of 1985, that arrangements satisfactory to the fund have been made for such foreign bank to make 90/100 of 1 per cent of its assets in the commonwealth available for call by the fund for a period of 10 years to provide loans to said fund for financing, down payment assistance, share loans, closing costs and other costs related to creating affordable rental housing, limited equity cooperatives and affordable home ownership opportunities, and tenant management programs and tenant unit acquisition or ownership programs in state funded public housing developments. All of the benefits and assistance provided by said fund under funds made available by this section shall be to persons with incomes of less than 80 per cent of the area-wide median income as determined from time to time by the United States Department of Housing and Urban Development; provided, however, that at least 25 per cent of such assistance shall be to persons with incomes of less than 50 per cent of said area-wide median income. All loans made to the fund by such banks shall be deemed to be legal investments for such banks; provided, however, that (a) such loans shall be evidenced by notes, or other evidence of indebtedness of the fund, which shall bear interest at rates approved by the commissioner, which shall be based upon the costs, not to include any lost opportunity costs, incurred by the bank in making funds available to the fund; provided, however, that the fund may, by agreement with such bank, accept a reduction in the amount of said call based upon a lower rate of interest; and (b) no loan to the fund shall be secured in any manner unless all outstanding loans to the fund shall be secured equably and ratably in proportion to the unpaid balance of such loans and in the same manner. Said fund shall file with the commissioner a report subsequent to any call to borrow funds pursuant to this section. Such report shall contain the total amount of the call, the allocation of the call to each such bank, the amount loaned by each to the fund and the rate of interest thereon. Said report shall be filed within 60 days of any such call. No such certificate shall be issued until the commissioner has received written assurances from such foreign bank that a resident or residents of the commonwealth shall occupy a position of an executive officer in any resulting bank or branch. For the purposes of this section, the term ''executive officer'' shall have the same meaning as in section 4 of chapter 167A.

M.G.L. c. 167C, § 16 Establishment of branch by foreign bank through merger or consolidation with any bank or federal bank

c. 167C, § 16. Establishment of branch by foreign bank through merger or consolidation with any bank or federal bank Section 16. Any foreign bank that has obtained a certificate issued pursuant to section 15, if such bank is expressly authorized to do so by the laws under which it is organized and operates, may, upon approval by the commissioner of an application thereof in prescribed manner and form, establish and maintain branches through a merger or consolidation with any bank or federal bank; provided, however, that in each instance the laws of the jurisdiction in which such foreign bank has its principal place of business shall expressly authorize, under conditions no more restrictive than those imposed by this chapter as so determined by the commissioner, any bank or federal bank to exercise like authority therein. Any foreign bank which establishes a branch through such merger, consolidation or purchase of assets or stock of any bank, shall operate the same as a branch under the supervision of the commissioner and in accordance with all applicable laws which govern such activities by banks. Any foreign bank which establishes a branch through such merger, consolidation or purchase of assets or stock of any federal bank, shall operate the same as a federal branch which shall be subject to all laws of the commonwealth relative to community reinvestment, consumer protection, fair lending, establishment of intra-state branches and the application or administration of any tax or method of taxation including, but not limited to, sections 1 to 14A of chapter 93 and applicable sections of chapters 93A, 167 to 167J, inclusive, and all other applicable laws including all rules and regulations established thereunder pursuant to law, and to other laws of the commonwealth as are applicable to a national bank with its main office in the commonwealth. Any merger, consolidation or purchase of assets shall comply with all applicable laws relative to filing requirements of out-of-state non-banking corporations doing business in the commonwealth. The commissioner shall not approve any such application if the bank or federal bank sought to be acquired thereby has been in existence for a period of less than 3 years or if, as a result thereof, the applicant would control in excess of 30 per cent of the total deposits, exclusive of foreign deposits, of all depository institutions in the commonwealth insured by the Federal Deposit Insurance Corporation, or any successor corporation thereto; provided, however, that the commissioner may waive either said age requirement or concentration limit, or both, if it is deemed that economic conditions warrant granting a waiver. For the purposes of this section, ''foreign deposits'' shall mean deposits received in a foreign country and deposits in Edge and Agreement subsidiaries and international banking facilities.

M.G.L. c. 167C, § 17 Out-of-state, out-of-state federal or foreign bank acting in fiduciary capacity pursuant to chapter 167G; certificate of authorization

c. 167C, § 17. Out-of-state, out-of-state federal or foreign bank acting in fiduciary capacity pursuant to chapter 167G; certificate of authorization Section 17. The commissioner may, subject to any conditions as the commissioner may prescribe, grant to an out-of-state bank, an out-of-state federal bank or a foreign bank a certificate authorizing it to act in a fiduciary capacity pursuant to chapter 167G, so far as applicable; provided, however, that such bank shall be authorized to act by the laws of the jurisdiction where its principal office is located; and provided, further, that the laws of such jurisdiction, as determined by the commissioner, shall grant a similar privilege or privileges to a bank. An out-of-state bank, out-of-state federal bank or a foreign bank holding a certificate and appointed a fiduciary shall be subject to the General Laws with respect to the appointment of agents by fiduciaries and to the same taxes, obligations and penalties, with respect to its activities as fiduciary and the property held by it in its fiduciary capacity, as banks, and no certificate shall be issued to an out-of-state bank, out-of-state federal bank or a foreign bank until it has filed with the commissioner an agreement in writing, in which it binds itself to perform said obligations and pay any such taxes and penalties as aforesaid as may be levied or imposed upon it in this commonwealth. A bank, to the extent only that it acts as fiduciary as authorized in this section, shall not be deemed to transact business in the commonwealth for the purposes of sections 40 to 42, inclusive, of chapter 167.

M.G.L. c. 167C, § 10, 11 Repealed, 2004, 461, Sec. 13

Source: Massachusetts General Court (malegislature.gov)URL: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXXII/Chapter167CFetched: 10/20/2026