|Organization:||Division of Banks|
Opinion Summary of Selected Opinion 97-224
Table of Contents
Ability Of Credit Union To Invest In An Electronic Funds Transfer System
Pursuant to Mass. Gen. Laws ch. 167B § 5, a financial institution may invest in an organization which assists or provides services to a financial institution in order to make available electronic funds transfers. This section also provides that "no financial institution shall invest in or contract for the services of any organization unless such organization has been approved in writing by the Commissioner." Section 3 of chapter 167B further states that "the Commissioner shall determine the amount which a financial institution may invest in the purchase, establishment, installation, operation, lease, use or sharing of electronic branches . . . in making such determination, the Commissioner shall consider the amount already invested by such financial institution for the transaction of its business and the current condition of such financial institution." Based on the statutory language of Mass. Gen. Laws ch. 167B §§ 3 and 5, it has been the consistent position of the Division that a state-chartered credit union is authorized to participate in the capitalization of an organization which is assisting that credit union in making electronic fund transfers, provided that such credit union complies with the applicable provisions of said chapter 167B.