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Opinion

Opinion Summary of Selected Opinion 00-084

Date: 04/01/2000
Organization: Division of Banks
Docket Number: 00-084

This opinion was issued in the second quarter of 2000.

A state-chartered banks authority to lend in Maine

Massachusetts General 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.

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