Related to:

Opinion Summary of Selected Opinion 98-252

Date: 10/02/1998
Organization: Division of Banks
Docket Number: 98-252

This opinion was issued during the fourth quarter of 1998.

Exemption From Licensing Requirements For State-Chartered Banks

Mass. Gen. Laws chapter 140, section 96, the Small Loan Act, requires that persons directly or indirectly engaging in the business of making loans of $6,000.00 or less and charging interest in excess of 12% per annum to obtain a small loan license from the Division of Banks. M.G.L. c. 140 § 114A contains an exemption from the small loan licensing requirement for various types of state-chartered and federally-chartered banking institutions. A banking institution chartered in California and insured by the FDIC is exempt from licensing requirements of the Small Loan Act. Such an institution would remain subject to the Rate order issued under the Small Loan Act. As stated previously in Opinion #98-124, California industrial loan companies are considered to be exempt from the licensing provisions of M.G.L. c. 255E governing mortgage lenders and brokers.


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