By the Division of Banks

Restrictions On Sharing Of Branch Office By Two Credit Unions

A state-charted credit union, with the written consent of the Commissioner, may establish and maintain one or more branch offices in the county where the main office of the credit union is located pursuant to Mass. Gen. Laws chapter 171, § 8. State-chartered credit unions are not subject to the restrictions prohibiting a state-chartered bank from sharing an office with another bank, national banking association, or federal savings and loan association pursuant to Mass. Gen. Law chapter 167C, § 5. Therefore, the sharing of a branch office would be permitted under credit union law.

Each state-chartered credit union seeking to open and share a new branch office is required to file an application to open the new branch. Similar basic information may be used for both filings. Since each application will receive separate reviews, it is possible that one credit union could be granted approval for the new branch and the other credit union could be denied.