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 Section 5 of chapter 167C of the General Laws is hereby repealed.
SECTION 2. Said chapter 167C is hereby further amended by adding the following section:-
Section 11. A bank, may receive deposits, renew time deposits, close loans, service loans, and receive payments on loans and other obligations in the commonwealth or in any other state as an agent for another banking institution, whether located within the commonwealth or in another state. The banking institution acting as such agent shall not be deemed to be a branch of the principal banking institution. A banking institution acting as such agent shall not conduct any activity which it would be prohibited from conducting as a principal under any state or federal law, or, as a principal, have any such agent conduct any activity which such institution would be prohibited from conducting under any state or federal law. Any such agency relationship shall be consistent with safe and sound banking practices and all applicable regulations of the commissioner.
For the purposes of this section, a banking institution shall mean a bank, federal bank, foreign bank, out-of-state bank and an out-of-state federal bank as such terms are defined in section 1 of chapter 167.