By the Division of Banks


Interstate Branching for Credit Unions
As of July 1, 2015

Background

Chapter 466 of the Acts of 2014, An Act Relative to Credit Union Branching, (Chapter 466) was signed into law on January 7, 2015.  Chapter 466 provides for expanded credit union branching opportunities within the states of Connecticut, Maine, New Hampshire, New York, Rhode Island  and Vermont (hereinafter, the other New England states and New York).

Massachusetts-Chartered Credit Unions Seeking to Establish a Branch in One of the Other New England States or New York

Summary:         Under Chapter 466, Massachusetts-chartered credit unions can apply to the Division of Banks (Division) for approval to establish a branch on a site which is located within 100 miles from the premises of its main office, and which is within one of the other New England states or New York.

Application:      Click here for the application for Massachusetts-chartered credit unions pdf format of uniform-credit-union-branching-application-7-1-15.pdf
.

Timing:             Please note the following timing considerations:

  • Massachusetts-chartered credit unions can submit one application in every 12-month period.
  • Under Chapter 466, the Division can begin to accept applications from Massachusetts-chartered credit unions effective July 1, 2015. No credit union can open a branch prior to October 1, 2015.     

Note:  As part of each credit union’s internal review process prior to submitting an application to the Division to expand into one of the other New England states or New York, each credit union should thoroughly review its existing field of membership provisions within its by-laws and is encouraged to consult with the Division on any questions regarding the process for any necessary amendments prior to filing an application with the Division.

Massachusetts-chartered credit unions are advised that the out-of-state branch will also be subject to all applicable laws in the state into which they seek to establish a branch.

Credit Unions Chartered by the Other New England States and New York  

Summary:         Under Chapter 466, a “foreign credit union” is defined as a credit union with its principal place of business in the states of Connecticut, Maine, New Hampshire, New York, Rhode Island or Vermont that is organized under the laws of the respective state.  A foreign credit union that is seeking to establish a branch in Massachusetts should submit an application to its state regulator.

Application:      Credit unions chartered by the other New England states and New York must contact their respective regulators for additional information.

Timing:             Please note the following timing considerations:

  • Foreign credit unions can submit one application to establish a branch located in Massachusetts to their respective regulators in every 12-month period.
  • Under Chapter 466, effective July 1, 2015, foreign credit unions can submit applications to their respective regulators. No foreign credit union can open a branch prior to October 1, 2015.

Note:  For a foreign credit union to establish a branch in Massachusetts, the Division will work closely with the foreign credit union’s regulator to ensure that the provisions of Chapter 466 are clearly understood by all parties with regard to applicable laws. 

 Foreign credit unions are advised that the branch located within Massachusetts will also be subject to all applicable Massachusetts laws if they seek to establish a branch in the Commonwealth.

Federal Credit Unions

Summary:         Under Chapter 466, a federally chartered credit union seeking to establish a branch in Massachusetts must provide notice to the Division.

Additional Information

The Division will post any additional guidance regarding interstate branching for credit unions on its website.

Click here for the Division’s proposed regulation, 209 CMR 58.00: Credit Union Branching pdf format of 209cmr58.00-proposed-7-1-15.pdf
, as originally proposed for the public hearing held on June 17, 2015.