Selected Opinions of the Division of Banks related to banks

Through these opinions, the Division of Banks (DOB) offers perspective on current issues and questions specific to banks.

2024

• Opinion 24-002
  • Permissibility for Massachusetts chartered banks to participate in reciprocal deposit programs, as described – April 25, 2024

2023

• Selected Opinion 23-004
  • Permissibility to engage in ministerial loan document execution services at a representative office of a foreign bank located in the Commonwealth - February 28, 2024

2020

• Opinion 020-001
  • Applicability of Massachusetts General Laws chapter 244, section 35B to certain agency and GSE loans – July 1, 2020

2019

• Opinion 19-009
  • Confirmation that a Massachusetts-chartered financial institution's donation to HOME is a qualified investment under CRA– December 11, 2019

• Opinion 19-001
  • Request for interpretation of MGL chapter 167I, section 14 governing changes in control of Massachusetts stock banks – June 5, 2019

2010

• Selected Opinion 09-028
  • Whether G.L. c. 183, s. 63A precludes a loan modification under HAMP - January 13, 2010

2009

• Selected Opinion 09-009
  • Providing credit under the Community Reinvestment Act for lenders who participate in the Neighborhood Stabilization Program - April 27, 2009

2006

• Selected Opinion 06-082
  • Whether a bank's participation in the Holocaust Restitution Payment Fee Waiver Program would qualify for consideration under the Community Reinvestment Act - December 1, 2006

2005

• Selected Opinion 05-160
  • 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
• Selected Opinion 05-069
  • 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

2004

• Selected Opinion 04-015
  • 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
• Selected Opinion 04-008
  • Determination of authorized state depository for holding collateral in lieu of a bond for used car dealers - March 5, 2004

2003

• Selected Opinion 03-049
  • Whether the activities of the New England Pension Assistance Project qualify under the Massachusetts Community Reinvestment Act - May 16, 2003
• Selected Opinion 03-038
  • Whether a state-chartered credit union or banking institution's participation in a program Is a qualified activity under the Massachusetts Community Reinvestment Act - April 9, 2003

2002

• Selected Opinion 02-038
  • Computation of capital for purposes of determining the aggregate loan limitation - April 19, 2002
• Selected Opinion 02-037
  • Permissibility of an out of state bank to perform fiduciary activities in Massachusetts - April 2, 2002
• Selected Opinion 02-035
  • Permissibility to offer bank customers a courier service through an independent third party courier service - April 2, 2002
• Selected Opinion 02-008
  • Is statute triggered by word bank in a product brand name - June 26, 2002
• Selected Opinion 02-003
  • Charging of fees for the purchase of bank checks or money orders under 18-65 accounts - January 23, 2002

2001

• Selected Opinion 01-177
  • Fee for cashing non-customer's check - December 18, 2001
• Selected Opinion 01-169
  • Donation to H.O.M.E. qualifying as a CRA investment - December 20, 2001
• Selected Opinion 01-145
  • State-chartered banks charging premium rates on ARMs - December 13, 2001
• Selected Opinion 01-120
  • Division of Bank regulation of a loan production office of a non-insured Connecticut bank - August 16, 2001
• Selected Opinion 01-110
  • Is a credit card covered by laws and bulletins governing insider transactions - November 20, 2001
• Selected Opinion 01-104
  • Annuity sales and other activities requiring approval - August 13, 2001
• Selected Opinion 01-101
  • Relocation of main office to adjacent parcel - August 2, 2001
• Selected Opinion 01-094
  • Are indemnifications and guarantees calculated to One Borrower Limit - December 31, 2001
• Selected Opinion 01-092
  • Affordable Housing Program for loans greater than 95% - July 18, 2001
• Selected Opinion 01-085
  • Do drive through and walk-up teller require branch approval - July 10, 2001
• Selected Opinion 01-064
  • Money Order Purchases under 18-65 Account - June 1, 2001
• Selected Opinions 01-052, 01-084
  • Expansion of bank main office requiring branch office approval - June 25, 2001, May 9, 2001
• Selected Opinion 01-047
  • Qualification of proposed loan program under Affordable Housing provisions of G.L. c. 167E, section 2, subsection C - April 12, 2001
• Selected Opinion 00-180
  • Payments of referral fees to third parties for consumer loans - March 20, 2001
• Selected Opinion 00-164
  • Operating a foreign currencies exchange service - March 1, 2001

2000

• Summary of Selected Opinion 00-167
  • Does a California industrial bank require a debt collection license - Q4 2000
• Summary of Selected Opinion 00-166
  • Establishment of an LPO by an out-of-state bank - Q4 2000
• Summary of Selected Opinion 00-159
  • Out of state bank maintaining an LPO in Massachusetts - Q4 2000
• Summary of Selected Opinion 00-117
  • Applicability Of G.L. ch. 93 § 105(b)(1)to a bank - Q3 2000
• Summary of Selected Opinion 00-116
  • Loans permitted by Chapter 47 Of The Acts Of 2000 - Q3 2000
• Summary of Selected Opinion 00-084
  • State-chartered banks authority to lend in Maine - Q2 2000
• Summary of Selected Opinion 00-063
  • Home Equity Loan disclosures required by federal regulation on bank's website - Q3 2000
• Summary of Selected Opinion 00-045
  • Reciprocity of laws with respect to interstate mergers between Connecticut and Massachusetts - Q2 2000
• Summary of Selected Opinion 00-033
  • A financial institution's participation in the Massachusetts Bankers Association mortgage lending initiative for qualification under the Commonwealth's Community Reinvestment Act - Q1 2000
• Summary of Selected Opinion 00-030
  • Excusing a delay by a bank in making a timely periodic statement
• Summary of Selected Opinion 00-024
  • Applicability of M.G.L. c 183, s 63B to a nationally chartered banking institution - Q1 2000
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• Summary of Selected Opinion 00-007
  • Qualification of a bank's investment in a CRA fund for consideration under the Commonwealth's Community Reinvestment Act  - Q1 2000
• Summary of Selected Opinion 00-006
  • A state-chartered ban-'s participation in the Massachusetts Housing Finance Agency's Mortgage Insurance Fund for qualification under the Commonwealth's Community Reinvestment Act - Q1 2000
• Summary of Selected Opinion 00-005
  • Out-of-state federal bank governed by M.G.L. 167, s 43A - Q1 2000

1999

• Selected Opinion 99A-542
  • Bank leasing space to a third party for NDIP sales - December 9, 1999
• Selected Opinion 98-250
  • Joint letter of DOB and Division of Insurance on the bank insurance sales statute – March 24, 1999
• Summary of Selected Opinion 99-176
  • 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
• Summary of Selected Opinion 99-160
  • Use of the word 'Banc" - Q4 1999
• Summary of Selected Opinion 99-099
  • Permissibility to establish a loan production office - Q3 1999
• Summary of Selected Opinion 99-097
  • Permissibility to invest in a small business investment company organized as a limited partnership - Q3 1999
• Summary of Selected Opinion 99-092
• Maximum amount that a state-chartered bank may charge as a prepayment penalty on a Home Equity Line of Credit secured by a first mortgage
• Summary of Selected Opinion 99-086
  • Permissibility to establish representative office - Q3 1999
• Summary of Selected Opinion 99-085
  • Clarification of shareholder voting rights - Q3 1999
• Summary of Selected Opinion 99-083
  • Clarification of shareholder vote needed to approve stock benefit plan adopted by converted stock form savings bank - Q3 1999
• Summary of Selected Opinion 99-082
  • Qualification of bank membership in MCBC for consideration under CRA - Q3 1999
• Summary of Selected Opinion 99-056
  • CRA Investment and Service Test requirements - Q2 1999
• Summary of Selected Opinion 99-050
  • Applicability of "18-65" law to state-chartered banks only - Q2 1999
• Summary of Selected Opinion 99-048
  • Permissibility to establish and fund a private nonprofit charitable foundation - Q2 1999
• Summary of Selected Opinion 99-043
  • Authority of Savings Bank Employees Benefit Association relative to formation of or investment in subsidiaries - Q2 1999
• Summary of Selected Opinion 99-022
• Permissibility of a savings bank to offer interest-free loans to employees and officers for home use computers - Q1 1999
• Summary of Selected Opinion 99-017
  • Truth-in-Lending disclosures for consumer loans through the internet - Q2 1999
• Summary of Selected Opinion 99-014
  • Permissibility of banks offering certain refinance mortgage loans under the Lending Test of the Community Reinvestment Act - Q1 1999
• Summary of Selected Opinion 99-002
  • Applicability of restrictions on late fee and prepayment penalties on residential mortgage loans to federally-chartered and out-of-state banks - Q1 1999
• Summary of Selected Opinion 98-267
  • Out-of-state banks making mortgage loans in the Commonwealth - Q1 1999

1998

• Summary of Selected Opinion 98-265
  • Permissibility of Massachusetts state-chartered bank to make loans out-of-state - Q4 1998
• Summary of Selected Opinion 98-254
  • Requirements for determining reciprocity of state banking laws for the purpose of bank mergers - Q4 1998
• Summary of Selected Opinion 98-248
  • Guidelines for advertising Money Market Accounts and Certificates Of Deposit - Q4 1998
• Selected Opinion 98-247
  • Bank lease of space to insurance agency - January 28, 1999
• Summary of Selected Opinion 98-244
  • Definition of "Officer" for the purposes of loan limitation - Q4 1998
• Summary of Selected Opinion 98-237
  • Requirements for revising terms of mortgage loans - Q4 1998
• Summary of Selected Opinion 98-225
  • Use of the word "Bank" in the name of an insurance company doing business in Massachusetts - Q4 1998
• Summary of Selected Opinion 98-212
  • CRA investment test requirements - Q4 1998
• Summary of Selected Opinion 98-204
  • 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
• Summary of Selected Opinion 98-201
  • Permissibility to offer a personal checking account containing a "sweep" feature - Q1 1999
• Summary of Selected Opinion 98-180
  • Permissibility of foreign bank to advertise and solicit deposits in the Commonwealth - Q4 1998
• Summary of Selected Opinion 98-148
  • Permissible bank fees; requirements for retaining mortgage payment histories - Q3 1998
• Summary of Selected Opinion 98-147
  • Transfer of authority to act in a fiduciary capacity - Q3 1998
• Summary of Selected Opinion 98-143
  • Collateralizing the deposits of economic development and industrial corporation - Q3 1998
• Summary of Selected Opinion 98-140
  • Permissibility of savings bank to offer reduced fee/points mortgages to its employees - Q3 1998
• Summary of Selected Opinion 98-131
  • Use of word "Trust" in name of entity that does not conduct banking business - Q2 1998
• Summary of Selected Opinion 98-127
  • Licensing requirements for entities making commercial loan - Q2 1998
• Summary of Selected Opinion 98-124 (-077)
  • Foreign corporation's use ff "Bank" as part of name when doing business in Massachusetts - Q2 1998
• Summary of Selected Opinion 98-119
  • Applicability of M.G.L. chapter 167E § 11(a), (b) to mortgage loans on commercial property - Q3 1998
• Summary of Selected Opinion 98-115
  • Open-end lines of credit disclosure requirements - Q3 1998
• Summary of Selected Opinion 98-113
  • Exemption from licensing requirements for banks - Q2 1998
• Summary of Selected Opinion 98-092
  • Public disclosure requirements for savings banks which have converted to stock corporations - Q3 1998
• Summary of Selected Opinion 98-081
  • Permissibility of cash prize program for auto dealers closing auto loans funded by a bank - Q2 1998
• Summary of Selected Opinion 98-069
  • Considerations of qualified activities of a bank's affiliates in a CRA examination - Q2 1998
• Summary of Selected Opinion 98-067
  • Licensing requirements for mortgage lenders affiliated with federally-chartered savings banks - Q2 1998
• Summary of Selected Opinion 98-065
  • Maturity Notice requirements for time deposit accounts longer than one month that renew automatically - Q2 1998
• Summary of Selected Opinion 98-063
  • Permissibility of bank using customer's social security no. as a central file no. - Q1 1998
• Summary of Selected Opinion 98-047
  • Open-end line of credit periodic billing statement - Q2 1998
• Summary of Selected Opinion 98-003
  • Use of an out-of-state bank's name for Massachusetts transactions - Q1 198

Selected Opinions related to banks: 97-254 through 97-053

97-254 through 97-053

Past opinions of the DOB

You can get copies of past opinions by submitting a Public Records Request to the DOB's Record Access Officer.

The DOB's Regulations, found in the Code of Massachusetts Regulations (CMR - agency code number 209), are available through the State House Bookstore.