AN ACT RELATIVE TO LIMITED PURPOSE TRUST COMPANIES.
Whereas, The deferred operation of this act would tend to defeat its purpose, which is to promulgate forthwith rules relative to the establishment and conversion of a limited purpose trust company, therefore it is hereby declared to be an emergency law, necessary for the immediate preservation of the public convenience.
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 9A of chapter 172 of the General Laws, as appearing in the 2010 Official Edition, is hereby amended by adding the following 2 paragraphs:-
A limited purpose trust company may be merged, consolidated, converted, liquidated, dissolved or its charter cease to exist in such manner as the commissioner may prescribe and subject to such terms and conditions he may impose. Section 4 of chapter 167A relative to the Massachusetts Housing Partnership Fund shall apply to any subsequent transaction involving an unaffiliated entity and a limited purpose trust company that had converted from a trust company to a limited purpose trust company and that, but for such conversion, would have been subject to said section 4. The commissioner shall not approve any transaction subject to this paragraph until the commissioner has received notice from the Massachusetts Housing Partnership Fund that satisfactory arrangements have been made.
SECTION 2. Notwithstanding any other general or special law to the contrary, with the approval of the commissioner under such procedures as the commissioner may require, a trust company chartered under chapter 172 of the General Laws which has deposits of less than $51,000,000 or fewer than 10 depositors may convert to a limited purpose trust company under section 9A of said chapter 172 by adopting, in the manner set forth herein, an amendment to its articles of organization specifying that the purposes of such corporation and the nature of the business to be transacted shall be those authorized for a limited purpose trust company chartered under said section 9A. The amendment shall be approved by the board of directors of the trust company and by the holders of at least 2/3 of each class of capital stock of the trust company and shall become effective upon filing of the amendment with the state secretary or at such later time as may be specified in such filing. A trust company that converts to a limited purpose trust company in the manner provided herein shall be considered the same business and corporate entity as that of the converting institution, although as to rights, powers and duties the resulting institution shall be a limited purpose trust company chartered under said section 9A of said chapter 172.
This section shall apply only to a trust company that notifies the commissioner in writing of its intention to convert to a limited purpose trust company within 12 months after the effective date of this act and consummates such conversion within 18 months after the effective date of this act.