By the Division of Banks

Exclusive Lease Arrangements In Which A Bank Is A Party

State-chartered banks have powers in parity with national banks under Mass. Gen. Laws chapter 167F, section 2(31) and its implementing regulations at 209 CMR 47.00 et seq. Said section 2, paragraph 31 provides that a state-chartered bank may "exercise any power and engage in any activity that is permissible for a national banking association with its main office located in the Commonwealth in accordance with regulations promulgated by the commissioner pursuant to this section; provided, however, that any such activity is not otherwise prohibited under the laws of the Commonwealth." The Division's promulgation of 209 CMR 47.00 et seq. did not include any authority for permitting exclusive lease arrangements. Neither statute nor regulations currently permit such a lease arrangement; thus, the bank may not utilize an exclusive lease provision.