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:

The second paragraph of section 18 of chapter 178 of the General Laws, as appearing in the 1988 Official Edition, is hereby amended by adding the following clause:-

(h) whenever the commissioner of banks has certified that the savings department of any such bank is in an unsafe or unsound condition, he shall forthwith notify the commissioner of savings bank life insurance. Upon such notification, or in the event that any such bank is sold to or merged with a bank or organization that is unauthorized by law to operate a savings bank life insurance department, the ownership and control of the property and business of the life insurance department shall automatically vest in the trustees of the General Insurance Guaranty Fund, who shall be responsible for the operation of such insurance department. The trustees may subsequently transfer the insurance department back to such bank if they have received notification from the commissioner of banks that such bank is no longer in an unsafe or unsound condition. The trustees may at any time authorize the reinsurance of all outstanding policies and annuity contracts assumed from such a bank to any other savings and insurance bank.