A State-Chartered Banks Authority To Lend In Maine - Q2 2000By the Division of Banks
Mass. Gen. Laws chapter 167E, section 2, subsection B, paragraph 14 states, in part, that a bank, subject to regulations made by the Commissioner, may make, acquire, purchase, participate in or service mortgage loans on certain loans outside of the Commonwealth. Although subsection B, in its second paragraph, contains certain geographical lending limitations, paragraph 14 is a separate and distinct power granted to a state-chartered bank, and such a geographical limitation does not apply to state-chartered bank exercising the power granted under paragraph 14. Therefore, the a bank could make a loan in Maine, or any other state, provided it complies with paragraph 14.