General Laws of Massachusetts - Chapter 168 Savings Banks - Section 4 Agreement to form savings bank; subscribers

Section 4. Twenty-five or more persons who associate themselves by an agreement in writing for the purpose of forming a savings bank, may, upon compliance with this section and sections five, six and seven, become a corporation with all the powers and privileges and subject to all the duties, restrictions and liabilities set forth in all general laws now or hereafter in force relating to such corporations. Said agreement shall set forth that the subscribers thereto associate themselves with the intention of forming a corporation to transact business within the commonwealth, and shall specify:

First. — The name by which the corporation shall be known.

Second. — The purpose for which it is to be formed.

Third. — The town wherein its main office is to be located.

Fourth. — The occupation, residence and post office address of each subscriber.

Each subscriber shall deposit at least two hundred dollars in cash with the corporation before it commences business; provided, however, that an aggregate of not less than ten thousand dollars shall be so deposited by the subscribers. Except with the written approval of the commissioner, none of such deposits shall be assigned, pledged or paid prior to the expiration of two years from the date the deposits are made.

Each subscriber shall sign the agreement which shall not be invalidated by reason of the death or incapacity of one or more of the subscribers.

Notwithstanding the provisions of sections seven to ten, inclusive, or any general or special law to the contrary, fifteen or more individuals, who associate themselves by a written agreement for the purpose of forming a stockholder owned savings bank, may, upon compliance with this section, and sections five and six, become a corporation with all of the powers and privileges of a savings bank under section two. Such corporation in its agreement of association shall comply with subsections (e), (f), and (g) of section five of chapter one hundred and seventy-two and section eight of said chapter one hundred and seventy-two. Upon its formation, the said corporation shall be subject to the provisions of sections eight to fifteen, inclusive, sections nineteen, twenty, twenty-two, twenty-four, twenty-six A, twenty-seven, twenty-eight, thirty, thirty-one and other applicable sections of chapter one hundred and seventy-two, except that any reference in any of said sections to trust company shall be deemed also to be a reference to savings bank.

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Last modified: September 11, 2015