General Laws of Massachusetts - Chapter 167 Supervision of Banks - Section 39 Branch offices of foreign banks; merger, consolidation, or purchase of assets or stock of state banks

Section 39. Any foreign bank which has obtained a certificate issued by the board of bank incorporation in accordance with section thirty-eight, if such bank is expressly authorized to do so by the laws under which it is organized and operates, may, upon approval by the commissioner of an application thereof in prescribed manner and form, establish and maintain branches through a merger or consolidation with any Massachusetts bank or federal bank; provided, however, that in each instance the laws of the jurisdiction in which such foreign bank has its principal place of business expressly authorize, under conditions no more restrictive than those imposed by this chapter as so determined by the commissioner, any Massachusetts bank or federal bank to exercise like authority therein.

Any such foreign bank which establishes a branch through such merger, consolidation or purchase of assets or stock of any Massachusetts bank, shall operate the same as a Massachusetts branch under the supervision of the commissioner and in accordance with all applicable laws which govern such activities by Massachusetts banks.

Any such foreign bank which establishes a branch through such merger, consolidation or purchase of assets or stock of any federal bank, shall operate the same as a federal branch which shall be subject to all laws of the commonwealth relative to community reinvestment, consumer protection, fair lending, establishment of intra-state branches, and the application or administration of any tax or method of taxation including, but not limited to, sections one to fourteen A of chapter ninety-three and applicable sections of chapters ninety-three A, one hundred and sixty-seven to one hundred and sixty-seven G, inclusive, chapter one hundred and eighty-three and chapter one hundred and eighty-four, including all rules and regulations established thereunder pursuant to law, and to such other laws of the commonwealth as are applicable to a national bank with its main office in the commonwealth.

Any such merger, consolidation or purchase of assets shall comply with all applicable provisions of law relative to filing requirements of out-of-state non-banking corporations doing business in the commonwealth. The commissioner shall not approve any such application if the Massachusetts bank or federal bank sought to be acquired thereby has been in existence for a period of less than three years or if, as a result thereof, the applicant would control in excess of thirty percent of the total deposits, exclusive of foreign deposits, of all depository institutions in the commonwealth insured by the Federal Deposit Insurance Corporation, or any successor corporation thereto; provided, however, that the commissioner may waive either said age requirement or concentration limit, or both, if it is deemed that economic conditions warrant granting such waiver. For the purposes of this section, the term “foreign deposits” shall mean deposits received in a foreign country and deposits in Edge and Agreement subsidiaries and international banking facilities.

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Last modified: September 11, 2015