2006 Massachusetts Code - Chapter 168 — Section 12. Board of investment.

[ Text of section effective until November 7, 2006. For text effective November 7, 2006, see below.]

  Section 12. The corporation shall have a board of investment of not less than 5 members, who shall be trustees of the corporation. Only 1 person holding the office of president, executive vice-president, senior vice-president or treasurer shall at the same time be a member of the board of investment. The board shall elect a clerk who may, but need not be a member of the board.

  The board shall approve all loans made or acquired by the corporation, all changes in security pledged, and the rates of interest charged, for loans; all purchases and sales of bonds, stocks or other securities; all foreclosures or mortgages of real estate and the sale of property held in foreclosure; the rates of interest paid on deposit accounts which rates may vary based on the type of account or the terms and conditions applicable to the account; and shall perform such other duties as the by-laws may prescribe; provided, however, that no member of such a board shall vote on any transaction involving a member of his immediate family. The board of investments may invite one or more trustees who are not members of said board to attend its meetings during such monthly, quarterly or semi-annual periods as said board may determine.

  Meetings of the board of investment shall be held at least once in each month. A record shall be made at each meeting of the transactions of the board and of the names of those present; provided, however, that lists of loans or securities submitted to and considered or acted upon at such meeting may be incorporated by reference in said record if such lists are filed with the records of such meeting and are identified by the signatures of the clerk of said board and one or more members thereof. The approval of changes in security for loans made may be evidenced either by vote of the board of investment or by a statement signed by at least two of its members.

Chapter 168: Section 12. Board of investment; membership; reports; meetings

[ Text of section as amended by 2006, 221, Sec. 2 effective November 7, 2006. For text effective until November 7, 2006, see above.]

  Section 12. The corporation shall have a board of investment of not less than 5 members, who shall be trustees of the corporation. Only 1 of the persons holding the offices or performing the duties of president, executive vice president, senior vice president or treasurer shall at the same time be a member of the board of investment. The board shall elect a clerk who may, but need not be a member of the board. The board of investment may invite 1 or more trustees who are not members of the board to attend its meetings during the monthly, quarterly or semi-annual periods as the board may determine.

  At least monthly, the treasurer or other officer designated by the board of investment shall submit to the board of investment, a written report, over his signature, covering the period for which the report has not yet been submitted. The report shall be filed with the records of the meeting and shall be retained for a period of 6 years from the date of the meeting. The report shall cover the following transactions:

  (1) changes in investments;

  (2) changes in reserve or contingency accounts;

  (3) lists of the following loans, setting forth the total liabilities of the borrower to the corporation, both secured and unsecured:--

  (i) loans in excess of $50,000 each, overdue for more than 30 days, other than real estate mortgage loans;

  (ii) real estate mortgage loans on which interest is more than 6 months in arrears;

  (iii) real estate mortgage loans concerning which any tax upon the underlying security has been paid by and not repaid to the corporations; and

  (iv) all loans secured and unsecured, and discounts of any borrower including both direct and indirect liabilities made during which the period which brings aggregate liabilities of the borrower to an amount in excess of $100,000, with annotation of any line of credit possessed by the borrower, but, for banks with total assets in excess of $1,000,000,000 as of the most recent call report, the amount of aggregate liabilities outstanding to a single borrower shall be the greater of $500,000 or 1 per cent of undistributed capital and surplus.

  Upon application in writing by the corporation, the commissioner in his discretion may waive or modify the list of transactions to be included in the report.

  Meetings of the board of investment shall be held at least once in each month. A record shall be made at each meeting of the transactions of the board and of the names of those present; but, lists of loans or securities submitted to and considered or acted upon at such meeting may be incorporated by reference in the record if the lists are filed with the records of the meeting and are identified by the signatures of the clerk of the board and 1 or more members thereof. The approval of change in security for loans made may be evidenced either by vote of the board of investment or by a statement signed by at least 2 of its members.