Permissibility For Credit Union To Establish A Mobile Branch - Q3 1999

A state-chartered credit union seeks to establish a mobile branch office to service its payroll companies throughout its operating sphere. The proposed mobile branch, a recreational vehicle, is intended to have the ability to open deposit accounts, offer loan products, and service cash needs by an ATM. Mass. Gen. Laws chapter 171, section 8 provides that mobile branch banking may be authorized by the Commissioner in the county wherein the main office of such credit union is located. This language prohibits the authorization of a mobile branch for a credit union in any county other than that in which the main office of such credit union is located. The intent of the restriction applies to the mobile aspect of branch offices for credit unions, and not to the location of any particular group of employees. There is no statutory authority to approve mobile branch units beyond limits of the county in which the main office is located. Please note similar restrictions apply to state-chartered banks pursuant to Mass. Gen. Laws chapter 167C, section 6.