Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 3 of chapter 167F of the General Laws, as appearing in the 1984 Official Edition, is hereby amended by striking out paragraph 2 and inserting in place thereof the following paragraph:-

2. Shares of Certain Bank Investment Funds - In the shares of beneficial interest of the Savings Bank Investment Fund and the Co-operative Bank Investment Fund; provided, however, that no such corporation shall invest in any such shares of any class representing a beneficial interest in any distinct investment fund consisting in whole or in part of equity securities (a) if the cost thereof added to the cost of such shares of an equity fund already owned shall exceed fifty per cent of the total of one capital stock and surplus account for a stock corporation or the surplus account for a thrift institution, or (b) if the cost thereof added to the amount already invested in such shares of such equity fund and in stocks shall exceed the total of such capital stock and surplus account for a stock corporation or surplus account for a thrift institution; and provided, further, that a corporation may invest in any such shares of any class representing a beneficial interest in any distinct investment fund which is not an equity fund to an amount in excess of one hundred per cent of the capital stock and surplus account of a stock corporation or to an amount in excess of one hundred per cent of the surplus account of a thrift institution except insofar as the commissioner may by regulation set limits and conditions on the amount which may be invested in such shares.

SECTION 2. The third paragraph of section 7 of chapter 45 of the acts of 1932, as most recently amended by section 80 of chapter 371 of the acts of 1983, is hereby further amended by adding the following sentence:- The assets of the Reserve Fund may be invested in the Co-operative Bank Investment Fund established by chapter four hundred and eighty-two of the acts of nineteen hundred and eighty-four; provided, however, that such investment shall not exceed at any one time twenty per cent of the assets of the Reserve Fund.

SECTION 3. Chapter 482 of the acts of 1984 is hereby amended by striking out section 1 and inserting in place thereof the following section:-

Section 1. The directors of the Co-operative Central Bank, established by chapter forty-five of the acts of nineteen hundred and thirty-two, hereinafter called the incorporators, are hereby constituted a corporation under the name of the Co-operative Bank Investment Fund, hereinafter referred to as the corporation. The successors from time to time of such directors shall, for the purposes of this act, be incorporators in place of their predecessors. The purpose of the corporation shall be to hold, invest, reinvest, and manage, one or more mutual investment funds, which shall include all property of the corporation, to be derived from voluntary subscription thereto made by co-operative banks now or hereafter during said term established under the laws of the commonwealth and subject to the provisions of chapter one hundred and seventy of the General Laws, hereinafter referred to as co-operative banks.

As used in this act, the term "co-operative bank" or "co-operative banks" shall include the Co-operative Banks Employees Retirement Association, the Massachusetts Co-operative Bank League, the National Consumer Co-operative Bank established pursuant to the National Consumer Co-operative Bank Act, Public Law 95-351, and the Reserve Fund of The Co-operative Central Bank, established by chapter forty-five of the acts of nineteen hundred and thirty-two; provided, however, that the subscription made by said Reserve Fund shall not exceed at any one time twenty per cent of the assets of said fund. The amount of said subscription may be regulated by the commissioner if he deems it necessary.

SECTION 4. The first paragraph of section 2 of said chapter 482 is hereby amended by striking out, in line 3, the words "seven nor more than fifteen" and inserting in place thereof the words:- five nor more than seven.

SECTION 5. Said first paragraph of said section 2 of said chapter 482 is hereby further amended by striking out the fifth sentence and inserting in place thereof the following sentence:- The office of director and any office other than director shall not be held by the same person.

SECTION 6. Section 4 of said chapter 482 is hereby amended by striking out clause (b) and inserting in place thereof the following clause:-

(b) in public obligations authorized in sections forty-two and forty-three of chapter one hundred and sixty-eight of the General Laws in effect on June thirtieth, nineteen hundred and eighty-three and included in the list of investments pursuant to sections fifteen A of chapter one hundred and sixty-seven of the General Laws.

SECTION 7. Said section 4 of said chapter 482 is hereby further amended by striking out clause (g) and inserting in place thereof the following clause:-

(g) the corporation shall have no power to borrow money, except that the corporation shall have the power to enter into repurchase agreements and to borrow money in such amounts and upon such security as the directors deem appropriate; provided, that such agreements or borrowing shall not be for a term in excess of three business days.