Selected Opinions regarding Banks

The publication of these Selected Opinions, as well as the previously issued Annual and Quarterly Digests, is part of the Division's ongoing effort to continue to improve its communication with all those who have a vested interest in the financial services industry. Through these Selected Opinions and Digests, the Division offers its perspective on current issues and questions in the financial services industry. As always, requests for opinions from the Division must be addressed directly to the Commissioner of Banks, Massachusetts Division of Banks, 1000 Washington Street, 10th Floor, Boston, MA 02118-6400 and must include a statement of all relevant facts, cites to applicable statutes and regulatory documents and an analysis of those materials supporting your position. The Division acknowledges receipt of opinion requests by assigning each a number. Any subsequent inquiries to the Division about an opinion request should refer to this opinion number.

Opinion on whether G.L. c. 183, s. 63A precludes a loan modification under the HAMP program

Opinion on providing credit under the Community Reinvestment Act (CRA) for lenders who participate in the Neighborhood Stabilization Program (NSP) - April 27, 2009

Whether a bank's participation in the Holocaust Restitution Payment Fee Waiver Program would qualify for consideration under the Community Reinvestment Act.

Whether State-Chartered Banks can Make any Adjustable Rate Mortgage Loan Saleable in the Secondary Market or only as Authorized by Recent Amendments to G.L. c. 167E - April 26, 2005

Does Crediting to a Customer's Account of a Deposit to an Out-of-State Bank at the time it is received at a Courier's or another Service Facility in Massachusetts Constitute a Branch Office - August 24, 2005

The Impact of Recent Amendments to the Pre-Need Funeral Contract Regulations, 239 CMR 4.00, on Banks and Funeral Trust Account Deposits - February 27, 2004

Determination of Authorized State Depository for Holding Collateral in Lieu of a Bond for Used Car Dealers - March 5, 2004

Whether the Activities of the New England Pension Assistance Project Would Qualify under the Massachusetts Community Reinvestment Act - May 16, 2003

Whether a State-Chartered Credit Union or Banking Institution's Participation in a Program Is a Qualified Activity under the Massachusetts Community Reinvestment Act (CRA) - April 9, 2003

Computation of Capital for Purposes of Determining the Aggregate Loan Limitation - April 19, 2002

Permissibility of an Out of State Bank to Perform Fiduciary Activities in Massachusetts - April 2, 2002

Permissibility to Offer Bank Customers a Courier Service through an Independent Third Party Courier Service - April 2, 2002

Is statute triggered by word bank in a product brand name - June 26, 2002

Charging of Fees for the Purchase of Bank Checks or Money Orders Under 18-65 Account - January 23, 2002

Fee for Cashing Non-customer's Check - December 18, 2001

Does a Donation to H.O.M.E. Qualify as a CRA Investment - December 20, 2001

Can State-chartered Banks Charge Premium Rates on ARMs - December 13, 2001

Is a Loan Production Office of a Non-insured Connecticut Bank Regulated by the Division - August 16, 2001

Is a Credit Card Covered by Laws and Bulletins Governing Insider Transactions - November 20, 2001

Do Annuity Sales and Other Activities Require Approval - August 13, 2001

Relocation of Main Office to Adjacent Parcel - August 2, 2001

Are Indemnifications and Guarantees Calculated to One Borrower Limit - December 31, 2001

Affordable Housing Program for Loans Greater than 95% - July 18, 2001

Do Drive Through and Walk-up Teller Require Branch Approval - July 10, 2001

Money Order Purchases under 18-65 Account - June 1, 2001

Does Expansion of Bank Main Office Require Branch Office Approval - June 25, 2001, May 9, 2001

Qualification of Proposed Loan Program under Affordable Housing provisions of G.L. c. 167E, section 2, subsection C - April 12, 2001

Payments of Referral Fees To Third Parties For Consumer Loans - March 20, 2001

Does A California Industrial Bank Require Debt Collection License - Q4 2000

Establishment Of An LPO By An Out-Of-State Bank - Q4 2000

Operating A Foreign Currencies Exchange Service - March 1, 2001

Out Of State Bank Maintaining An LPO In Massachusetts - Q4 2000

The Applicability Of MGL ch. 93 § 105(b)(1) (Personal Identification Requirements For Check Cashing)To A Bank - Q3 2000

Loans Permitted By Chapter 47 Of The Acts Of 2000 - Q3 2000

A State-Chartered Banks Authority To Lend In Maine - Q2 2000

Home Equity Loan Disclosures Required By Federal Regulation On Bank's Website - Q3 2000

Reciprocity Of Laws With Respect To Interstate Mergers Between Connecticut and Massachusetts - Q2 2000

A Financial Institution's Participation In The Massachusetts Bankers Association Mortgage Lending Initiative For Qualification Under The Commonwealth's Community Reinvestment Act("CRA") - Q1 2000

Excusing A Delay By A Bank In Making A Timely Periodic Statement - Q2 2000

Applicability Of Massachusetts General Laws Chapter 183, Section 63B To A Nationally Chartered Banking Institution - Q1 2000

Qualification Of A Bank's Investment In A CRA Fund For Consideration Under The Commonwealth's Community Reinvestment Act ("CRA") - Q1 2000

A State-Chartered Bank's Participation In The Massachusetts Housing Finance Agency's Mortgage Insurance Fund For Qualification Under The Commonwealth's Community Reinvestment Act ("CRA") - Q1 2000

Out-of-State Federal Bank Governed By Massachusetts General Law 167, Section 43A - Q1 2000

A State-Chartered Bank Originating First Mortgage Loans With A Loan-To-Value Ratio Of 97% Of The Value Of The Real Estate - Q4 1999

Use Of The Word "Banc" - Q4 1999

Permissibility To Establish A Loan Production Office - Q3 1999

Permissibility To Invest In A Small Business Investment Company Organized As A Limited Partnership - Q3 1999

Maximum Amount That State-Chartered Bank May Charge As A Prepayment Penalty On A Home Equity Line Of Credit Secured By A First Mortgage

Permissibility To Establish Representative Office - Q3 1999

Clarification Of Shareholder Voting Rights - Q3 1999

Clarification Of Shareholder Vote Needed To Approve Stock Benefit Plan Adopted By Converted Stock Form Savings Bank - Q3 1999

Qualification Of Bank Membership In MCBC For Consideration Under CRA - Q3 1999

CRA Investment And Service Test Requirements - Q2 1999

Applicability of "18-65" Law To State-Chartered Banks Only - Q2 1999

Permissibility To Establish And Fund A Private Nonprofit Charitable Foundation - Q2 1999

Authority Of Savings Bank Employees Benefit Association ("SBEBA") Relative To Formation Of Or Investment In Subsidiaries - Q2 1999

Permissibility Of A Savings Bank To Offer Interest-Free Loans To Employees And Officers For Home Use Computers - Q1 1999

Truth-In-Lending Disclosures For Consumer Loans Through The Internet - Q2 1999

Permissibility Of Banks Offering Certain Refinance Mortgage Loans Under The Lending Test of the Community Reinvestment Act - Q1 1999

Applicability Of Restrictions On Late Fee And Prepayment Penalties On Residential Mortgage Loans To Federally-Chartered And Out-Of-State Banks - Q1 1999

Out-Of-State Banks Making Mortgage Loans In the Commonwealth - Q1 1999

Permissibility Of Massachusetts-Chartered Bank To Make Loans Out-Of-State - Q4 1998

Requirements For Determining Reciprocity Of State Banking Laws For The Purpose Of Bank Mergers - Q4 1998

Guidelines For Advertising Money Market Accounts And Certificates Of Deposit - Q4 1998

Bank Lease of Space to Insurance Agency - January 28, 1999

Definition Of "Officer" For The Purposes Of Loan Limitations - Q4 1998

Requirements For Revising Terms Of Mortgage Loans - Q4 1998

Use Of The Word "Bank" In The Name Of An Insurance Company Doing Business In Massachusetts - Q4 1998

CRA Investment Test Requirements - Q4 1998

Recognizing The Validity Of A Commercial Loan Transfer From A Foreign Bank To A Trust Organized By The Bank So That The Trust May Consolidate The Commercial Loans And Issue Notes Secured By The Collateral Of Said Loans - Q3 1998

Permissibility To Offer A Personal Checking Account Containing A "Sweep" Feature - Q1 1999

Permissibility Of Foreign Bank To Advertise And Solicit Deposits In The Commonwealth - Q4 1998

Permissible Bank Fees; Requirements For Retaining Mortgage Payment Histories - Q3 1998

Transfer Of Authority To Act In A Fiduciary Capacity - Q3 1998

Collateralizing The Deposits Of Economic Development And Industrial Corporation - Q3 1998

Permissibility Of Savings Bank To Offer Reduced Fee/Points Mortgages To Its Employees - Q3 1998

Use Of Word "Trust" In Name Of Entity That Does Not Conduct Banking Business - Q2 1998

Licensing Requirements For Entities Making Commercial Loans - Q2 1998

Foreign Corporation's Use Of "Bank" As Part Of Name When Doing Business in Massachusetts - Q2 1998

Applicability Of Mass. Gen. Laws chapter 167E ¿¿ 11(a), (b) To Mortgage Loans On Commercial Property - Q3 1998

Open-End Lines Of Credit Disclosure Requirements - Q3 1998

Exemption From Licensing Requirements For Banks - Q2 1998

Public Disclosure Requirements For Savings Banks Which Have Converted To Stock Corporations - Q3 1998

Permissibility Of Cash Prize Program For Auto Dealers Closing Auto Loans Funded By A Bank - Q2 1998

Considerations Of Qualified Activities Of A Bank's Affiliates In a CRA Examination - Q2 1998

Licensing Requirements For Mortgage Lenders Affiliated With Federally-Chartered Savings Banks - Q2 1998

Maturity Notice Requirements For Time Deposit Accounts Longer Than One Month That Renew Automatically - Q2 1998

Permissibility Of Bank Using Customer's Social Security No. As A Central File No. - Q1 1998

Open-End Line Of Credit Periodic Billing Statement - Q2 1998

Use Of An Out-Of-State Bank's Name For MA Transactions - Q1 1998

Copies of past opinions may be obtained for a fee from the Division's Consumer Assistance Unit at (617) 956-1502, and must be paid for by check. The Division's Regulations, found in the Code of Massachusetts Regulations (CMR - agency code number 209), are available through the State House Bookstore, State House Room 116, Boston, Massachusetts, 02133. Please contact the bookstore directly for prices at (617) 727-2834.