Massachusetts 2023-2024 Regular Session

Massachusetts Senate Bill S623 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1 of 1
2	2	SENATE DOCKET, NO. 1387 FILED ON: 1/19/2023
3	3	SENATE . . . . . . . . . . . . . . No. 623
4	4	The Commonwealth of Massachusetts
5	5	_________________
6	6	PRESENTED BY:
7	7	Sal N. DiDomenico
8	8	_________________
9	9	To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General
10	10	Court assembled:
11	11	The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill:
12	12	An Act relative to growth opportunities for state financial institutions.
13	13	_______________
14	14	PETITION OF:
15	15	NAME:DISTRICT/ADDRESS :Sal N. DiDomenicoMiddlesex and Suffolk 1 of 2
16	16	SENATE DOCKET, NO. 1387 FILED ON: 1/19/2023
17	17	SENATE . . . . . . . . . . . . . . No. 623
18	18	By Mr. DiDomenico, a petition (accompanied by bill, Senate, No. 623) of Sal N. DiDomenico
19	19	for legislation to strengthen the state credit union charter. Financial Services.
20	20	[SIMILAR MATTER FILED IN PREVIOUS SESSION
21	21	SEE SENATE, NO. 656 OF 2021-2022.]
22	22	The Commonwealth of Massachusetts
23	23	_______________
24	24	In the One Hundred and Ninety-Third General Court
25	25	(2023-2024)
26	26	_______________
27	27	An Act relative to growth opportunities for state financial institutions.
28	28	Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority
29	29	of the same, as follows:
30	30	1 SECTION 1. Section 15 of Chapter 167I of the General Laws, as appearing in the 2020
31	31	2Official Edition, is hereby amended by striking out the first paragraph and inserting in place
32	32	3thereof the following two paragraphs:-
33	33	4 Subject to the written approval of the commissioner, a bank may be dissolved and
34	34	5liquidate its affairs if authorized by a vote passed, at a meeting specially called to consider the
35	35	6subject, by at least 2/3 of the voting body of the bank. A committee of 3 members prescribed by
36	36	7the commissioner, shall liquidate the assets and after satisfying all debts of the bank shall
37	37	8distribute the remaining proceeds among those entitled thereon in proportion to their respective
38	38	9interests therein. 2 of 2
39	39	10 If the liquidation of a mutual bank or stock bank is to be effected in whole or in part
40	40	11through the sale of any of its assets to and the assumption of its deposit and other liabilities,
41	41	12including all contingent liabilities, by a bank in mutual form or by a credit union as part of a
42	42	13business combination, the purchase and sale agreement must also be approved pursuant to
43	43	14section 8 of this chapter. The commissioner shall establish expedited liquidation procedures for
44	44	15such business combination transactions whereby the mutual bank or stock bank is dissolved
45	45	16immediately after the combination. However, if any liabilities will remain in the mutual bank or
46	46	17stock bank, the standard liquidation procedures shall apply.
47	47	18 SECTION 2. Chapter 171 of the General Laws is hereby amended by adding after
48	48	19section 78A the following section:-
49	49	20 Section 78B. A credit union may purchase in whole or in part any of the assets of and
50	50	21assume the deposit liabilities of any mutual bank or stock bank pursuant to section 8 of chapter
51	51	22167I and the mutual bank or stock bank may be liquidated under the expedited procedures for
52	52	23such business combination transactions under section 15 of said chapter 167I. If the main office
53	53	24and branches of such bank are purchased, they shall become branches of the credit union without
54	54	25any other approval required. The depositors of such bank shall become members of the credit
55	55	26union within 2 years after such transaction is approved or for such longer period as may be
56	56	27approved by the commissioner.