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. Paragraph 4 of section 10 of chapter 168 of the General Laws, as appearing in the 1986 Official Edition, is hereby amended by striking out the last sentence and inserting in place thereof the following sentence:- Upon the election as trustee of a person who has not been theretofore a trustee of such corporation, the clerk shall send forthwith to the commissioner the name and address of such person and the clerk shall transmit to such person a copy of the laws relating to savings banks.

SECTION 2. Section 21 of said chapter 168, as so appearing, is hereby amended by striking out, in lines 5 and 6, the words "to one hundred and sixty-eight, inclusive," and inserting in place thereof the words:- , one hundred and sixty-seven A to one hundred and sixty-seven G, inclusive, one hundred and sixty-eight and one hundred and eighty-three as such provisions are applicable to such officer or to such bank.

SECTION 3. Section 22 of said chapter 168, as so appearing, is hereby amended by striking out, in lines 3 and 4, the words "or one hundred and sixty-eight" and inserting in place thereof the words:- , one hundred and sixty-seven A to one hundred and sixty-seven G, inclusive, one hundred and sixty-eight, and one hundred and eighty-three as such provisions are applicable to such officer or to such bank.

SECTION 4. Section 13 of chapter 170 of the General Laws, as so appearing, is hereby amended by striking out, in lines 5 and 6, the words "or one hundred and seventy" and inserting in place thereof the words:- , one hundred and sixty-seven A to one hundred and sixty-seven G, inclusive, one hundred and seventy, and one hundred and eighty-three as such provisions are applicable to such officer or to such bank.

SECTION 5. Section 16 of said chapter 170, as so appearing, is hereby amended by striking out, in lines 3 and 4, the words "or one hundred and seventy" and inserting in place thereof the words:- , one hundred and sixty-seven A to one hundred and sixty-seven G, inclusive, one hundred and seventy and one hundred and eighty-three as such provisions are applicable to such officer or to such bank.

SECTION 6. The second paragraph of section 21 of chapter 171 of the General Laws is hereby amended by striking out paragraph (i), as so appearing, and inserting in place thereof the following paragraph:-

(i) In a common trust unit plan organized for the purchase of obligations of the United States or any subdivision thereof which appear on the list of legal investments prepared pursuant to section fifteen A of chapter one hundred and sixty-seven and which plan has as its custodian a banking institution authorized to accept deposits from credit unions.

SECTION 7. Said second paragraph of said section 21 of said chapter 171 is hereby further amended by striking out paragraph (k), as so appearing, and inserting in place thereof the following paragraph:-

(k) Obligations of other federal agencies which appear on the list of legal investments prepared pursuant to section fifteen A of chapter one hundred and sixty-seven.

SECTION 8. Said second paragraph of said section 21 of said chapter 171 is hereby further amended by striking out paragraph (n), as so appearing, and inserting in place thereof the following paragraph:-

(n) In any obligations, bank stocks, bank holding company stocks, insurance stocks or preferred stocks of public utility companies which appear on the list of legal investments prepared pursuant to section fifteen A of chapter one hundred and sixty-seven.

Not more than ten per cent of the assets of a credit union shall be invested in bank stocks or bank holding company stocks or insurance stocks or preferred stocks of public utility companies or in all four of the such types of stocks appearing on said list and not more than fifteen thousand dollars, or two per cent of the assets of a credit union, whichever is greater, shall be invested in the stock of any one such bank, bank holding company, insurance company or preferred stock of public utility companies.

Not more than twenty per cent of the deposits of a credit union shall be invested in railroad obligations appearing on such list, and not more than one and one-half per cent of the deposits of any such credit union shall be invested in the obligations of any one operating railroad corporation.

Not more than twenty per cent of the deposits of a credit union shall be invested in the obligations of telephone companies appearing on said list and not more than four per cent of the deposits of such credit union shall be invested in the obligations of any one such company.

Not more than twenty-five per cent of the deposits of a credit union shall be invested in obligations of public utility companies appearing on said list and not more than four per cent of the deposits of such credit union shall be invested in the obligations of any one such company.

Not more than ten per cent of the deposits of a credit union shall be invested in interest bearing obligations authorized for investment under the provisions of section fifteen B of chapter one hundred and sixty-seven and appearing on the list of legal investments prepared pursuant to section fifteen A of said chapter one hundred and sixty-seven. Not more than one-half of one per cent of the deposits of such credit union shall be so invested in the obligations of any one obligor, but the foregoing limitations shall not apply to obligations of telephone companies, of companies engaged primarily in the distribution and sale of electricity or gas, or both, or of railroad companies other than terminal companies.

SECTION 9. Said second paragraph of said section 21 of said chapter 171, as so appearing, is hereby further amended by adding the following two paragraphs:-

(v) In bankers' acceptances of the kinds and maturities made eligible by law for rediscount with federal reserve banks; provided, that the same are accepted by a bank, banking association or trust company incorporated under the laws of the United States or of this commonwealth, and having its principal place of business within the commonwealth.

Not more than ten per cent of the deposits of a credit union shall be invested in such bankers' acceptances, and not more than five per cent of the deposits of such credit union shall be invested in the acceptances eligible by law for rediscount in federal reserve banks of any one accepting bank or trust company; and the aggregate amount of bankers' acceptances of any one bank, banking association or trust company held by any such credit union shall not exceed twenty-five per cent of the paid-up capital and surplus of such bank, banking association or trust company.

(w) In certificates of deposit having a maturity not in excess of two years of a banking corporation; provided that (a) either the banking corporation or a bank holding company as, defined by chapter one hundred and sixty-seven A which owns two-thirds of the outstanding shares of each class of such banking corporation's voting stock has paid in each of the five years immediately preceding the date of investment dividends in cash of not less than four per cent of its common stock without having reduced the aggregate par value thereof; (b) the banking corporation has surplus at least equal to fifty per cent of its capital stock; (c) the banking corporation has a combined total of capital stock, surplus, undivided profits, capital debentures and reserve for contingencies at least equal to six per cent of its aggregate deposit liability at the end of the calendar year immediately preceding the date of investment; and (d) the banking corporation is, if its principal office is located outside the commonwealth, a member of the federal reserve system; provided, however, that in the case of a banking corporation having a combined total of capital stock, surplus, undivided profits and reserve for contingencies equal to at least five hundred million dollars the said combined total may be less than six per cent, but not less than five per cent, of its aggregate deposit liability at the end of the calendar year immediately preceding the date of investment. The limitation imposed by clause (a) of this paragraph shall not apply to an aggregate investment of less than one hundred thousand dollars in certificates of deposit of a banking corporation, if the deposits of said corporation are insured by the Federal Deposit Insurance Corporation.

SECTION 10. Section ten of chapter one hundred and seventy-two of the General Laws is hereby repealed.

SECTION 11. Section 17 of chapter 172 of the General Laws, as appearing in the 1986 Official Edition, is hereby amended by striking out, in lines 5 and 6, the words "or one hundred and seventy-two except in so far as much" and inserting in place thereof the words:- , one hundred and sixty-seven A to one hundred and sixty-seven G, inclusive, one hundred and seventy-two and one hundred and eighty-three as such provisions are applicable to such officer or to such bank except in so far as such.

SECTION 12. Section 21 of said chapter 172, as so appearing, is hereby amended by striking out, in lines 3 and 4, the words "or one hundred and seventy-two" and inserting in place thereof the words:- , one hundred and sixty-seven A to one hundred and sixty-seven G, inclusive, one hundred and seventy-two and one hundred and eighty-three as such provisions are applicable to such officer or to such bank.

SECTION 13. Section twenty-nine of said chapter one hundred and seventy-two is hereby repealed.