By the Division of Banks

Collateralizing The Deposits Of Economic Development And Industrial Corporation

Mass. Gen. Laws chapter 167D, section 21 states that "banks may give such collateral or other security for deposits of public or other funds as may be required by any public authority making such deposits for controlling the terms upon which they may be made." An economic development and industrial corporation organized by any municipality in the Commonwealth pursuant to Mass. Gen. Laws chapter 121C, section 3 is a public body politic and corporation. It is the Division's position that, for the purpose of collateralizing deposits, an economic development and industrial corporation organized under M.G.L. c. 121C § 3 may be considered a public authority under M.G.L. c. 167D § 21.