Effective April 8, 2003
By the Division of Banks
The Commonwealth of Massachusetts
Division of Banks
Notice of Public Hearing
In accordance with the provisions of Massachusetts General Laws chapter 30A, a public hearing will be held on May 14, 2003 at 9:30 a.m. in Hearing Room A, 5 th Floor, One South Station, Boston, Massachusetts at which oral comments will be received by the Division of Banks relative to the adoption of amendments to 209 CMR 47.00 et seq., Parity with National Banks, and 209 CMR 50.00 et seq., Parity with Federal Credit Unions.
These amendments were filed on April 8, 2003 with the Secretary of State as emergency regulations pursuant to G.L. c. 167F, §2, p. 31, G.L. c. 171, §6A and G.L. c. 30A, §2. The purpose of these regulations is to address a court decision which has potential wide-range implications for state-chartered banks and credit unions. The amendments clarify the requirement that permissible powers and activities sought by banks and credit unions pursuant to the respective governing parity laws, G.L. c. 167F, §2, p. 31 and G.L. c. 171, §6A, must be expressly authorized by the Commissioner and set forth in 209 CMR 47.00 et seq. and 209 CMR 50.00 et seq. Powers and activities not so authorized are prohibited. The Division is now following the process to make the regulations permanent.
Written comments may be submitted to the Division of Banks on the proposed amendments until 1:00 p.m. on the date of the hearing, May 14, 2003. Copies of the proposed regulations are posted below and may also be obtained from the Division of Banks at One South Station, Boston, Massachusetts 02110.
209 CMR 47.00: PARITY WITH NATIONAL BANKS
47.01: Purpose and Scope
47.02: Applicability and Relationship to Other State Law
47.03: Advisory Opinions
47.05: Bank Eligibility to Conduct Activities
47.06: Application Process to Conduct Certain Activities
47.07: Expedited Review Process to Conduct Certain Activities
47.08: Notice Process to Conduct Certain Activities
47.09: Activities Requiring No Application or Notice
47.01: Purpose and Scope
The purpose of 209 CMR 47.00 et seq. is to specify authorized powers and activities of banks, pursuant to M.G.L. c. 167F, §2, clause 31, and to establish procedures and requirements, applicable to banks seeking to exercise additional or more flexible parallel powers granted to or conduct activities authorized for national banks under Federal law, to the extent that such powers are not otherwise prohibited under State law.
In determining whether or not to authorize any power or activity, the Commissioner shall also determine whether or not competition among banks will be unreasonably affected and whether public convenience and advantage will be promoted.
A bank may, under M.G.L. c. 167F, §2, clause 31 and 209 CMR 47.00 et seq., exercise only those powers and engage in only those activities authorized by the Commissioner as set forth in 209 CMR 47.00 et seq. Powers and activities not so authorized are prohibited.