ADMINISTRATION OF THE GOVERNMENT (Chapters 1 through 182)
Advance, loan upon or purchase of bank assets or stock
Section 35. With the approval of the commissioner, any such corporation may advance or loan upon or purchase the whole or any part of the assets or stock of any state-chartered bank or of any federally-chartered bank, including any state-chartered bank in possession of the commissioner under sections twenty-two to thirty-six, inclusive, of chapter one hundred and sixty-seven and any state-chartered bank assisted by or in possession of its insurer and may participate in such an advance, loan or purchase with one or more banks so located. The request for such approval shall be accompanied by an investigation fee, the amount of which shall be determined annually by the commissioner of administration under the provision of section three B of chapter seven. Such advance, loan or purchase may be made upon such terms and conditions as shall have been approved by vote of at least two-thirds of the trustees of the corporation and the applicable board of such other bank.
Such corporation or corporations making or participating in such an advance, loan or purchase for the purpose of effecting the same, may assume and agree to pay the whole or any part of the deposit and other liabilities of any other state-chartered bank or federally-chartered bank upon such terms and conditions and subject to such adjustments as may be approved by the commissioner. In the event of such approval by the commissioner, other provisions of law applicable to the investment of funds of savings banks and to the limitations upon deposits therein shall not apply.
No such transaction under this section shall be consummated until arrangements satisfactory to any excess deposit insurer of each such bank have been made and notice thereof has been received by the commissioner.
The commissioner may impose such conditions and restrictions as he may deem necessary or advisable in respect to the deposit or other liabilities as hereinbefore provided. In the case of any new savings bank formed for the purpose of purchasing any or all the assets and assuming any or all the liabilities of any state-chartered bank in possession or assisted as aforesaid, the commissioner may impose such other and further conditions and restrictions concerning the business, investments and operations of such new savings bank as he may deem necessary or advisable. So much of sections ten and thirteen as provide that no person shall hold an office in two savings banks at the same time shall not prevent an officer or trustee of any other savings bank from serving as an officer or trustee of such new bank, or of a state-chartered bank or federally-chartered bank the assets and liabilities or stock of which shall have been purchased and assumed by a savings bank hereunder.
Before all or substantially all of the assets or stock of any such corporation shall be sold to a corporation other than one chartered under chapter one hundred and sixty-eight, such action shall be approved by a vote of at least two-thirds of those corporators present and voting at a special meeting called for that purpose, of the corporation proposing to sell its assets or stock. Notice of such special meeting shall be given by the clerk in accordance with the provisions of section nine A.
For the purposes of this section, a state-chartered bank shall mean a trust company, savings bank, or cooperative bank chartered by the commonwealth or by a country other than the United States. A federally chartered bank shall mean a national banking association, federal savings and loan association or federal savings bank which has its main office located in the commonwealth.
In deciding whether or not to approve any such advance, loan or purchase, the commissioner shall determine whether or not competition among banking institutions will be unreasonably affected and whether or not public convenience and advantage will be promoted. In making such determination, the commissioner shall consider, but not be limited to, a showing of net new benefits. For the purpose of this section, the term “net new benefits” shall mean initial capital investments, job creation plans, consumer and business services, commitments to maintain and open branch offices within a bank’s delineated local community, as such term is used within section fourteen of chapter one hundred and sixty-seven, and such other matters as the commissioner may determine.