ADMINISTRATION OF THE GOVERNMENT (Chapters 1 through 182)
Surrender of charter to accept federal savings bank charter; excess insurance
Section 36. Any such corporation may upon a majority vote of its board of investment, petition the board of bank incorporation for authority to surrender its charter in order to accept a savings bank charter from the federal government. If the board of bank incorporation determines that public convenience and advantage will be promoted thereby, it shall grant such authority, which grant shall be valid for one year from the date thereof. Upon the receipt of such petition, said board shall assign a date and place for public hearing thereon and shall furnish such corporation a form of notice relative thereto. Such corporation shall publish the notice at least once a week for three successive weeks in one or more newspapers designated by said board and published in the town wherein the main office of such corporation is located or, if there is no newspaper in said town, in the town wherein a newspaper is published and which is nearest to the location of the main office of such corporation. If the board refuses to approve such petition, no further proceeding therein, except as authorized by chapter thirty A, shall be had, but the petition may be renewed after one year from the date of the refusal, in which case notice of a public hearing thereon shall be published as hereinbefore provided. If the board grants approval of said petition, the state charter of said bank shall become void provided: (1) the action of said board of investment in filing such petition has been approved by an affirmative vote of two-thirds of the corporators at the annual meeting, or at a meeting specially called for the purpose and by an affirmative vote of two-thirds of the trustees at a regular meeting or at a meeting specially called for the purpose, and (2) the commissioner has been notified in writing by the federal supervisory authority that such corporation has been granted a federal charter.
Upon the acceptance by such corporation of a federal charter, it shall cease to be a member bank in the Depositors Insurance Fund. Notwithstanding any other provision of law, following its acceptance of a federal charter such corporation shall not retain, succeed to, or acquire any rights, including but not limited to rights to dividends or to the proceeds of any distribution in complete or partial dissolution or liquidation, in the Depositors Insurance Fund, or in its Liquidity Fund or Deposit Insurance Fund, except to the extent specifically provided in this paragraph. In the event that such corporation shall, subsequent to its acceptance of a federal charter, (i) convert to a Massachusetts-chartered savings bank and become a member of the Depositors Insurance Fund, or (ii) become a federal member of the Depositors Insurance Fund, such corporation shall, for so long as it shall remain a member or federal member bank of the Depositors Insurance Fund participate in any dividends paid pursuant to section three of chapter forty-three of the acts of nineteen hundred and thirty-four and in any distributions made pursuant to section ten of said chapter forty-three, and in any dividends paid and any withdrawals or returns of deposits authorized pursuant to section four of chapter forty-four of the acts of nineteen hundred and thirty-two, in each case based upon the retained amounts paid in by such corporation to the Deposit Insurance Fund and the Liquidity Fund, respectively, without regard to whether such amounts were paid before or after acceptance of a federal charter, or upon the unexpended portion thereof, in the same manner and to the same extent as it would have been entitled to participate if such corporation had not accepted a federal charter.
Any such corporation which accepts or has accepted a federal charter after January first, nineteen hundred and eighty-three may apply to the Depositors Insurance Fund for insurance coverage of its deposits in excess of the amount insured by a federal deposit insurance agency, hereinafter referred to as “excess insurance”, in accordance with the requirements of chapter forty-four of the acts of nineteen hundred and thirty-two and chapter forty-three of the acts of nineteen hundred and thirty-four; provided, however, that no such corporation shall apply for such excess insurance unless such corporation shall have capital and surplus if a stock institution or surplus if a mutual institution, less any intangible asset value, equal to or greater than six per cent of total assets. The Depositors Insurance Fund shall not accept for excess insurance coverage any such corporation which fails to meet the requirements specified above or the requirements set out in section nineteen of said chapter forty-three. For purposes of this section, federal deposit insurance agency shall mean Federal Deposit Insurance Corporation or Federal Savings and Loan Insurance Corporation or any successor to either corporation.