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General Laws

Section 4. The subscribers to said agreement shall give notice to the board of bank incorporation of their intention to form a co-operative bank, and shall apply to said board for a certificate that public convenience and advantage will be promoted by the establishment thereof. Said application 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. Said board may grant such certificate, which shall be deemed revoked if the applicants therefor do not become incorporated and begin business within one year after its date of issue. Upon receipt of such application, said board shall furnish the subscribers a form of notice, specifying the names of the proposed incorporators and the name and location of the proposed co-operative bank and assigning a date and place for a public hearing on the application. The subscribers shall publish the notice at least once a week for three successive weeks, in one or more newspapers designated by said board and published in the town wherein it is desired to establish the bank or, if there is no newspaper in such town, in the town wherein a newspaper is published which is nearest to the proposed location of the bank; and at least fourteen days before the date fixed for said public hearing the subscribers shall mail a copy of said notice by registered mail, postage prepaid, to The Co-operative Central Bank, organized under chapter forty-five of the acts of nineteen hundred and thirty-two. If said board refuses to issue such certificate, no further proceedings shall be had, but the application may be renewed after one year from the date of the refusal, in which case notice of a public hearing thereon shall be published and mailed as hereinbefore provided.

Said board may require the subscribers to establish or provide for the establishment of a special surplus fund in an amount determined by the board, which shall be represented by cash, deposits or securities eligible for the liquidity reserve referred to in section twenty-two and which shall be paid in, in full, to the corporation before it commences business. Said board shall issue regulations governing the maintenance of and withdrawals from any such fund.

Upon notice from the subscribers that the proposed cooperative bank is ready to commence business, the board shall determine that all requirements of law have been complied with, that the bank is a member of the Federal Deposit Insurance Corporation or any successor of the corporation, and that the qualifications of personnel are satisfactory. Upon making such determination, the board shall, if satisfied that public convenience and advantage will be promoted thereby, issue a certificate authorizing such bank to begin the transaction of business. No such bank shall begin the transaction of business until such a certificate has been granted.

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