Selected Opinions of the Division of Banks related to credit unions

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

2020

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

2019

• Opinion 19-002
  • Questions regarding credit union real estate loan purchases and real estate loan participations – September 10, 2019

2014

• Selected Opinion 14-016
  • Whether a credit union may reimburse individual directors for the cost of the director’s family plan health insurance premiums - November 19, 2014

2012

• Selected Opinion 12-008
  • Whether reimbursing individual directors the cost of the director’s health insurance is in compliance with Massachusetts law

2011

• Selected Opinion 11-012
  • Mortgage licensing requirements for CUSOs – May 10, 2011

2010

• Selected Opinion 09-026
  • Whether a state-chartered credit union may offer a split dollar life insurance program to its executives -- May 3, 2010

2009

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

2005

• Selected Opinion 05-011
  • Revised position relative to 100% loan-to-value automobile lending by credit unions - February 2, 2005

2003

• Selected Opinion 03-054
  • Clarification on the circumstances which trigger the requirement for a state-chartered credit union to have an audit conducted by a Certified Public Accountant or Public Accountant - July 2, 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 (CRA) - April 9, 2003
• Selected Opinion 02-126
  • Issues on products and services which can be offered to an organization member including member business loans - February 6, 2003

2002

• Selected Opinion 02-137
  • Whether a state-chartered credit union or banking institution's participation in two programs are qualified activities under the Massachusetts Community Reinvestment Act (CRA) - December 12, 2002
• Selected Opinion 02-097
  • Reimbursement of certain director expenses - September 5, 2002
• Selected Opinion 02-122
  • Does group life insurance policy for credit union directors meet statutory requirements – May 12, 2003
• Selected Opinion 02-040
  • Clarification on authority to branch outside of the county where the main office is located - April 10, 2002

2001

• Selected Opinion 01-144
  • Authority to lend or contribute money to foundation etablishing a credit union museum - December 12, 2001
• Selected Opinion 01-103
  • Do credit unions nee a license to have foreign transmittals done by licensed entity - August 16, 2001
• Selected Opinion 01-051
  • Use of word banking in credit union advertisement - April 27, 2001

2000

• Summary of Selected Opinion 00-087
  • Credit unions right to select an attorney on their behalf in a mortgage transaction - Q3 2000
• Summary of Selected Opinion 00-065
  • Credit unions ability to accept insured nonmember deposits - Q3 2000
• Summary of Selected Opinion 00-034
  • The creation of a charitable foundation by a credit union - Q2 2000
• Summary of Selected Opinion 00-020
  • Honorary directors right to participate in credit union's group health and dental insurance programs - Q1 2000
• Summary of Select Opinion 99-151
  • The ability of a state-chartered credit union to allow voting rights by mail for the election of directors - Q1 2000

1999

• Summary of Select Opinion 99-131
  • Permissibility for for credit union to establish a mobile branch - Q3 1999
• Summary of Select Opinion 99-112
  • Disclosure of director's expenses at Annual Meeting - Q3 1999
• Summary of Select Opinion 99-060
  • Permissibility of state-chartered credit unions to engage in indirect automobile lending activities under the pending parity regulations - Q2 1999
• Summary of Select Opinion 99-044
  • Permissibility of a credit union to offer "repurchase agreements" - Q2 1999
• Summary of Select Opinion 99-039
  • Permissibility of a federally-chartered corporate credit union to offer a paid-in capital offering to member state-chartered credit unions - Q2 1999
• Summary of Select Opinion 99-036
  • Permissibility of federal credit union considering conversion to a state charter in another state to open a branch office or electronic kiosk - Q2 1999
• Summary of Select Opinion 99-001
  • Permissibility of state-chartered credit unions establishing IOLTA accounts for attorneys - Q1 1999
• Summary of Select Opinion 98-275
  • Prohibition against employees of credit unions obtaining loans - Q1 1999

1998

• Summary of Select Opinion 98-250
  • Joint letter of DOB and Division of Insurance on the bank insurance sales statute – March 24, 1999
• Summary of Select Opinion 98-234
  • CRA qualification of credit union mortgage investment pool Q4 1998
• Summary of Select Opinion 98-227
  • Legality of certain investment by state-chartered credit unions - Q4 1998
• Summary of Select Opinion 98-222
  • Collection of real estate taxes on mortgage loans - Q4 1998
• Summary of Select Opinion 98-207
  • Permissibility of state-chartered credit unions to purchase loans from another state-chartered or federally-chartered credit union - Q4 1998
• Summary of Select Opinion 98-164
  • Aggregate limit on term deposits held by a credit union organizational member - Q3 1998
• Summary of Select Opinion 98-152
  • Ability of credit unions to sell vehicle service contracts to their members - Q2 1998
• Summary of Select Opinion 98-141
  • Temporary sharing of credit union facilities during an emergency situation - Q3 1998
• Summary of Select Opinion 98-099
  • Ability of credit unions to offer credit cards issued by third-parties - Q2 1998
• Summary of Select Opinion 98-085
  • Ability of credit unions to branch - Q2 1998
• Summary of Select Opinion 98-083
  • Aggregate loan limitations of one credit union member - Q2 1998
• Summary of Select Opinion 98-075
  • Permissibility of credit card agreement provision allowing creditor to increase account interest rate if borrower makes a late payment - Q3 1998
• Summary of Select Opinion 98-038
  • Permissibility of credit union to receive fees for referring members to a licensed mortgage broker - Q3 1998
• Summary of Select Opinion 98-017
  • Permissibility of board member doing paid legal work for credit union - Q2 1998

1997

• Summary of Select Opinion 97-264
  • Operating at a location not the main office
• Summary of Select Opinion 97-236
  • Restrictions on sharing of branch office by two credit unions - Q4 1997
• Summary of Select Opinion 97-229
  • Policies regarding opening new accounts - Q4 1997
• Summary of Select Opinion 97-226
  • State-chartered credit union authority to offer mortgage loans funded, underwritten and closed in the name of a third party - Q4 1997
• Summary of Select Opinion 97-224
  • Ability of credit union to invest in an electronic funds transfer system
• Summary of Select Opinion 97-215
  • Credit union authority to issue credit cards to low and moderate income applicants regardless of age - Q4 1997
• Summary of Select Opinion 97-211
  • Ability of Massachusetts credit union to advertise in a Rhode Island newspaper
• Summary of Select Opinion 97-202
  • Permissibility of leading excess space to a financial planning firm - Q4 - 1997
• Summary of Select Opinion 97-176
  • Central Credit Union Fund - Q4 1997
• Summary of Select Opinion 97-167
  • Credit union implementation of a mandatory vacation policy - Q3 1997
• Summary of Select Opinion 97-160
  • Providing group life insurance; accident and health, or medical, surgical, or hospital insurance or benefits to directors - Q3 1997
• Summary of Select Opinion 97-150
  • Offering insurance products to directors
• Summary of Select Opinion 97-137
  • Establishing a mobile branch - Q3 1997
• Summary of Select Opinion 97-136
  • Permissibility of distributing loan applications from automobile dealerships - Q3 1997
• Summary of Select Opinion 97-092
  • Credit union leasing branch office space to a financial planning firm - Q3 1997
• Summary of Select Opinion 97-088
  • Permissibility of designating credit union loan production offices as depots - Q3 1997
• Summary of Select Opinion 97-057 (-142)
  • Applicability of the Commonwealth's Electronic Funds Transfer Systems Act to federal credit unions - Q3 1997
• Summary of Select Opinion 97-047
  • Credit union authority to issue VISA credit cards to low to moderate income applicants 62 years of age or older - Q3 1997

Past opinions of the DOB

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