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November 16, 2024 Clouds | 44°F
The 193rd General Court of the Commonwealth of Massachusetts

Section 32: Foreign societies; deposits

Section 32. A foreign society, if formed under the laws of any government or state other than the United States or one of the United States, shall not be admitted and authorized to transact business in the commonwealth until, besides complying with the conditions of sections thirty and thirty-six, it has satisfied the commissioner that it has made a deposit, as hereinafter provided, with the state treasurer or with the proper board or officer of some other state of the United States or with trustees who are citizens or corporations of the United States and approved by the commissioner, appointed under a deed of trust executed in a form approved by the attorney general and the commissioner and who have filed with the commissioner a bond, in a form approved by the attorney general and the commissioner, with a surety company authorized to transact business in the commonwealth as surety, and in such sum as the commissioner may require, conditioned upon the faithful performance of their duties and running to the commissioner or his successor for the benefit of all the members, certificate holders and creditors within the United States of such society. Such deposit shall be held in exclusive trust for the benefit and security of all the members, certificate holders and creditors in the United States of such society, and shall be in an amount not less than the reserves with respect to all its outstanding certificates of membership held by residents of the United States and may be made in the securities and subject to the limitations specified in sections sixty-three and sixty-six of chapter one hundred and seventy-five, or in cash or such other securities as the commissioner may approve. If made with the state treasurer, such deposit shall not be returned to the society until it has ceased to transact business in the commonwealth, nor until the commissioner is satisfied that the society is under no obligation to members, certificate holders or other persons in this commonwealth or in any other state of the United States for whose benefit such deposit was made, nor until he has given his written consent to such return; provided, that the commissioner may, in any case, authorize in writing the return to the society of any excess of any such deposit over the amount required by this section if he is satisfied that such return will not be prejudicial to the interests of its members, certificate holders or creditors.