Session Laws

Whereas, The deferred operation of this act would tend to defeat its purpose, which is to immediately provide for additional requirements in the merger or consolidation of certain banks, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.

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 34B of chapter 168 of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by adding the following paragraph:-

Upon a merger or consolidation pursuant to this section by any such corporation into a single thrift institution, such corporation, hereinafter referred to as a former member bank, shall cease to be a member of the Mutual Savings Central Fund, Inc. Such thrift institution shall be entitled to receive from the Mutual Savings Central Fund, Inc., an amount not to exceed the actual deposits made by such former member bank pursuant to the provisions of section four of chapter forty-four of the acts of nineteen hundred and thirty-two, less its indebtedness, if any, to said Mutual Savings Central Fund, Inc.; provided, however, that no part of the income, surplus, undivided profits or other reserves of the Liquidity Fund established under the provisions of chapter forty-four of the acts of nineteen hundred and thirty-two shall be so paid. All amounts required to be paid by a former member bank pursuant to the provisions of sections one and seventeen of chapter forty-three of the acts of nineteen hundred and thirty-four, including the income, surplus, undivided profits and other reserves of the Deposit Insurance Fund, shall be retained by the Mutual Savings Central Fund, Inc., as a charge for the insurance of deposits of such corporation while it was a member bank. Such thrift institution shall, however, participate in any distribution made under the provisions of section ten of said chapter forty-three, but the aggregate amount of such distributions shall be limited to an amount equal to the amount the former member bank would have received had the Deposit Insurance Fund been liquidated at the time of such merger or consolidation; provided, however, that such thrift institution may also participate in any dividends paid pursuant to section three of said chapter forty-three to the extent the board of directors of said Mutual Savings Central Fund, Inc., declares dividends for payment to former member banks, subject to the prior approval of the commissioner as provided for in said section three of said chapter forty-three.

SECTION 2. Section 34D of said chapter 168, as so appearing, is hereby amended by adding the following paragraph:-

Upon a merger or consolidation pursuant to this section by any such stock corporation into a state chartered trust company or federally chartered stock corporation, such stock corporation, hereinafter referred to as a former member bank, shall cease to be a member bank in the Mutual Savings Central Fund, Inc. The successor corporation to such former member bank shall be entitled to receive from the Mutual Savings Central Fund, Inc., an amount not to exceed the actual deposits made by such former member bank pursuant to the provisions of section four of chapter forty-four of the acts of nineteen hundred and thirty-two, less its indebtedness, if any, to said Mutual Savings Central Fund, Inc.; provided, however, that no part of the income, surplus, undivided profits or other reserves of the Liquidity Fund established under the provisions of chapter forty-four of the acts of nineteen hundred and thirty-two shall be so paid. All amounts required to be paid by a former member bank pursuant to the provisions of sections one and seventeen of chapter forty-three of the acts of nineteen hundred and thirty-four, including the income, surplus, undivided profits or other reserves of the Deposit Insurance Fund, shall be retained by the Mutual Savings Central Fund, Inc., as a charge for the insurance of deposits of such former member bank while it was a member bank. Such successor corporation shall, however, participate in any distribution made under the provisions of section ten of said chapter forty-three, but the aggregate amount of such distributions shall be limited to an amount equal to the amount the former member bank would have received had the Deposit Insurance Fund been liquidated at the time of such merger or consolidation; provided, however, that such successor corporation may also participate in any dividends paid pursuant to section three of said chapter forty-three to the extent the board of directors of said Mutual Savings Central Fund, Inc., declares dividends for payment to former member banks, subject to the prior approval of the commissioner as provided for in said section three of said chapter forty-three.

SECTION 3. Section 3 of chapter 43 of the acts of 1934, as amended by section 13 of chapter 405 of the acts of 1985, is hereby further amended by striking out the second sentence and inserting in place thereof the following sentence:- The corporation may also pay dividends at such rates and at such times as the directors may determine, subject to the prior approval of the commissioner of any such payments, rates and times and subject to his prior approval as to the terms, conditions and use of such payment, to banks which have previously been member banks but whose membership was terminated either by merger or consolidation pursuant to sections thirty-four B and thirty-four D of chapter one hundred and sixty-eight of the General Laws or by conversion to federal charter pursuant to section thirty-six or thirty-seven of said chapter one hundred and sixty-eight, upon the retained amounts paid in by such former member banks to the Deposit Insurance Fund or upon the unexpended portion thereof.

SECTION 4. This act shall take effect as of September first, nineteen hundred and ninety-two and shall apply to any merger or consolidation of a bank which occurs on or after September first, nineteen hundred and ninety-two.