Permissibility Of Designating Credit Union Loan Production Offices As Depots
The establishment of a loan production office (LPO) by a state-chartered credit union does not require the Division of Banks' approval under Mass. Gen. Laws chapter 171. The Division's approval is required under Mass. Gen. Laws chapter 171 § 8 for a credit union to establish a depot to receive deposits and collect monies due or payable to the credit union. Such depot business may only be conducted on those days specified by the board of directors and is subject to any conditions that the Division may prescribe. The Division interprets the reference to deposits in Mass. Gen. Laws chapter 171 § 8 to include shares. Therefore, a proposed member's share may be received at a credit union depot. Furthermore, an LPO may be designated with the Division's approval as a credit union depot pursuant to Mass. Gen. Laws chapter 171 § 8 for the purpose of accepting a proposed member's qualifying share.