| Date: | 01/01/1998 |
|---|---|
| Organization: | Division of Banks |
| Docket Number: | 98-003 |
This opinion was issued in the first quarter of 1998.
- This page, Summary of Selected Opinion 98-003, is offered by
- Division of Banks
Opinion
Opinion Summary of Selected Opinion 98-003
Table of Contents
Use of an out-of-state bank's name for Massachusetts transactions
According to Mass. Gen. Laws ch. 167 § 37, a foreign corporation shall not solicit or receive deposits or transact any business whatsoever in the manner described in Mass. Gen. Laws ch. 167, 167C thru 167G, and 168 thru 172A (the Commonwealth's banking statutes) unless authorized to do so under the laws of the Commonwealth. Section 37 also provides that such a corporation may not make use of any sign at the place where its business is transacted or use any written or printed materials having any name or other words indicating that such place or office is a bank. Additionally, the statute prohibits a foreign corporation from transacting business under any name or title which contains the word "bank". It is the position of the Division of Banks that a foreign bank that does not intend to conduct a banking business within Massachusetts, but instead will be offering mortgage loans, is not subject to the prohibitions set forth in Mass. Gen. Laws ch. 167 § 37.