By the Division of Banks

Deposit Solicitation In Massachusetts By Out-Of-State Banks

Any domestic or foreign corporation 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 cannot solicit or receive deposits in any manner so as to lead the public to believe that its business is that of a bank under Mass. Gen. Laws chapter 167 § 37. It is the position of the Division of Banks that this statute applies only to non-banking corporations. Therefore, a bank chartered by a state other than Massachusetts would not be violating the statute by soliciting deposits in Massachusetts provided that the laws of the bank's home state authorize such solicitations. Out-of-state banks, however, may not establish a physical presence in Massachusetts in order to solicit deposits unless they receive the Commissioner's approval pursuant to Mass. Gen. Laws chapter 167 § 39C.