Section 38. With the approval of the commissioner, a trust company 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 other such banks so located. 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 directors of the trust company and the applicable board of such other bank. A trust company making or participating in such 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 such 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 trust companies and to the limitations upon deposits therein shall not apply. In the case of any new trust company formed for the purpose of purchasing any or all of the assets and assuming any or all of the liabilities of any trust company in his possession under said sections, he may impose such other and further conditions and restrictions concerning the business, investments and operation of such new trust company as he may deem necessary or advisable.
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.
So much of section nineteen as provides that no person shall hold an office in two trust companies at the same time shall not prevent an officer or director of any other trust company from serving as an officer or director of such new trust company or of any other bank the assets and liabilities or stock of which shall have been purchased and assumed by a trust company hereunder.
In deciding whether or not to approve any such loan, advance 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.
For the purposes of this section, a state-chartered bank shall mean a trust company, or a savings bank or a 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.