2017 Massachusetts General Laws
PART I ADMINISTRATION OF THE GOVERNMENT
TITLE XXII CORPORATIONS
Chapter 167I CORPORATE BANK TRANSACTIONS: MERGERS, CONSOLIDATIONS, PURCHASE OF ASSETS AND CONVERSIONS
Section 8 Advance, loan upon or purchase of whole or part of assets or stock of any bank, etc., in possession of commissioner pursuant to Secs. 22 to 36 of chapter 167 or assisted by or in possession of insurer
Section 8. With the approval of the commissioner, any bank may advance or loan upon or purchase the whole or any part of the assets or stock of any bank, out-of-state bank, federally-chartered bank, thrift institution, limited purpose trust company, credit union or federally-chartered credit union including any state-chartered bank in possession of the commissioner pursuant to sections 22 to 36, inclusive, of chapter 167 and any state-chartered bank assisted by or in possession of its insurer and may participate in such an advance, loan or purchase with 1 or more banks so located. The request for such approval shall be accompanied by an investigation fee, the amount of which shall be determined annually by the secretary of administration and finance pursuant to section 3B of chapter 7. Such advance, loan or purchase may be made upon the terms and conditions approved by vote of at least 2/3 of the board of the bank and the applicable board of such other bank or federally chartered bank.
Such bank or banks making or participating in such an advance, loan or purchase for the purpose of effecting the same, may assume and agree to pay the whole or any part of the deposit and other liabilities of any other bank, out-of-state bank, federally-chartered bank, thrift institution, limited purpose trust company, credit union or federally-chartered credit union upon such terms and conditions and subject to such adjustments as may be approved by the commissioner. In the event of such approval by the commissioner, other laws applicable to the investment of funds of a bank therein shall not apply.
No such transaction under this section shall be consummated until arrangements satisfactory to any excess deposit insurer of each such bank, if applicable, have been made and notice thereof has been received by the commissioner.
The commissioner may impose such conditions and restrictions as may be deemed necessary or advisable in respect to the deposit or other liabilities, as hereinbefore provided. In the case of any new bank formed for the purpose of purchasing any or all the assets and assuming any or all the liabilities of any bank in possession or assisted as aforesaid, the commissioner may impose such other and further conditions and restrictions concerning the business, investments and operations of such new bank as the commissioner may deem necessary or advisable. Section 8 of chapter 167J shall not prevent an officer, trustee or director of any other bank from serving as an officer, trustee or director of such new bank or of a bank or federally-chartered bank the assets and liabilities or stock of which shall have been purchased and assumed by a bank hereunder.
Before all or substantially all of the assets or stock of any bank shall be sold, such action shall be approved by the voting body of the bank, out-of-state bank, federally-chartered bank, thrift institution, credit union or federally-chartered credit union at a special meeting called for that purpose; of the corporation proposing to sell its assets or stock by a 2/3 vote of the voting body present, qualified to vote and voting; of a mutual bank and by the voting body in a stock bank. Notice of such special meeting shall be given by the clerk in accordance with the provisions of applicable law.
In deciding whether to approve any such advance, loan or purchase, the commissioner shall determine whether or not competition among banking institutions will be unreasonably affected and whether public convenience and advantage will be promoted. In making such determination, the commissioner shall consider, at a minimum, a showing of net new benefits. For the purpose of this section, ''net new benefits'' shall include initial capital investments, job creation plans, consumer and business services, commitments to maintain and open branch offices within a bank's delineated local community, as such term is used within section 14 of chapter 167, and such other matters as the commissioner may deem necessary or advisable.