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Opinion Summary of Selected Opinion 97-092

Date: 07/01/1997
Organization: Division of Banks

This opinion was issued in the third quarter of 1997.

Table of Contents

Credit union leasing branch office space to a financial planning firm

State-chartered credit unions may invest in the purchase of a suitable site and the erection or preparation of a suitable building or for alterations, improvements or additions thereto, under Mass. Gen. Laws chapter 171 § 75. In such a purchase, erection or preparation there may be included a reasonable amount of rental property subject to the Commissioner's approval and provided that such property is necessary to complete said purchase, erection or preparation. State-chartered credit unions are not otherwise specifically authorized to lease space within a branch office, or to act as a financial or other agent of their members in the acquisition or disposition of property. However, such credit unions are not precluded from leasing excess space in buildings occupied by a main office or branch. The Division would consider a request for approval to lease space to a financial planning firm submitted with the following: additional information on the separation of the credit union's office from the financial planning firm; the activities, if any, of the credit union's employees relative to the financial planning firm; the fees or commissions, if any, earned by the credit union on sales or other transactions conducted by the financial planning firm other than reasonable rental income; signage and advertising procedures; as well as whether the financial planning firm will be limited to servicing only members of the credit unions at this site.

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