Permissibility Of Federal Credit Union Considering Conversion To A State Charter In Another State To Open A Branch Office Or Electronic Kiosk - Q2 1999

By the Division of Banks

A federal credit union considering conversion to a state charter outside of Massachusetts seeks to open a branch office or electronic kiosk branch in Massachusetts. Mass. Gen. Laws chapter 167, section 39C allows a foreign bank, out-of-state bank, or out-of-state federal bank to maintain a branch de novo in the Commonwealth. It has been the Division's position that only those entities listed in the statute be permitted to establish and maintain a de novo branch office. Out-of-state credit unions are not listed therein, nor does there exist a provision in Mass. Gen. Laws chapter 171, which governs state-chartered credit unions, for an out-of-state credit union to establish or maintain a branch office within Massachusetts' borders. Mass. Gen. Laws chapter 167B governs electronic branches ("ATMs"). Section 3 of said chapter 167B does allow out-of-state institutions to establish ATMs subject to reciprocity as well as application to and approval by the Division.

Recommended Content

People also viewed...

You recently viewed...

Personalization is OFF. Your personal browsing history at is not visible because your personalization is turned off. To view your history, turn your personalization on.

Learn more on our .

*Recommendations are based on site visitor traffic patterns and are not endorsements of that content.