By the Division of Banks

Temporary Sharing Of Credit Union Facilities During An Emergency Situation

One of the National Credit Union Administration's (NCUA) operational management policies requires state-chartered credit unions to adopt a Disaster Recovery Policy in order to maintain NCUA insurance. Mass. Gen. Laws chapter 167, section 1A authorizes the Commissioner of Banks to promulgate regulations establishing minimum standards for the security and protection of state-chartered banks and credit unions. Regulation 209 CMR 4.03 establishes such standards. Compliance with the NCUA's Disaster Recovery Policy is deemed to be compliance with 209 CMR 4.03.

Although Mass. Gen. Laws. chapter 167C, section 5 prohibits two state-chartered banks from sharing the same banking facility, there is no comparable provision in credit union law. It is the position of the Division, therefore, that two state-chartered credit unions may make arrangements, as part of a Disaster Recovery Policy, to share the same physical location in a situation where an emergency renders the office of a credit union unusable.