Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 50.00 - Parity with Federal Credit Unions › Section 50.06 - Notice Process to Conduct Certain Activities

Current through Register 1525, July 5, 2024
(1)
General
. A credit union that is well or adequately
			 capitalized and has not been notified that it is in troubled condition may
			 engage in any activity listed under 209 CMR 50.06(3), by providing the
			 Commissioner written notice 30 days prior to commencing the new activity. The
			 Commissioner may modify, curtail, rescind, or otherwise limit any activity
			 listed under 209 CMR 50.06(3) for safety and soundness reasons pursuant to
			 209 CMR
			 50.04(4). Notification of
			 limitations will be provided within the 30 day notice period. At the time the
			 notice is filed or at any time the notice is pending, a credit union may
			 request that the Commissioner waive and the Commissioner may waive the
			 remaining notice period.
(2)
Notice
. The written notice must include a complete
			 description of the activity conducted, the credit union's investment in such
			 activity, and a representation and undertaking that the activity will be
			 conducted in accordance with Massachusetts and federal law. Any credit union
			 filing notice pursuant to 209 CMR 50.06(1) is deemed to have agreed to conduct
			 the activity in a manner consistent with applicable guidelines. The
			 Commissioner may require other information as deemed necessary.
(3)
Activities Subject to
			 Notice
. A credit union may engage in the following activities
			 pursuant to 209 CMR 50.06(1):
(a)
Non-member Monetary Instrument Services
. As set forth
			 in 12 CFR § 721 and NCUA Opinion Letter 02-0250, in order to provide
			 monetary instrument services for non-members, a credit union may engage in the
			 following: may establish a simplified membership program, with a non-dividend
			 bearing membership account; with appropriate limitations may provide wire
			 transfer services as a promotional activity pursuant to 209 CMR 50.06(3)(a) and
			 50.07(2)(h)2.g.;
			 and in appropriate circumstances may provide wire transfer services as a
			 charitable activity. A credit union may also offer check cashing and money
			 transfer services to certain non-members within the credit union's field of
			 membership including the following: the sale of negotiable checks, travelers
			 checks, money orders and other similar money transfer instruments; the cashing
			 of checks and money orders; and the receiving of international and domestic
			 electronic fund transfers.
(b)
Certain Finders Activities
. A credit union may make
			 insurance, mutual funds and annuities available to its members through outside
			 vendors subject to the requirements of 12 CFR § 721 and Massachusetts law.
			 A credit union may also provide additional finder activities.
(c)
Operational
			 Programs
. A credit union may provide payroll services.
(d)
Non-member
			 Deposits
.
1.
Low
			 Income Designated Credit Unions
. A credit union designated in
			 writing as "low income" by the Division of Banks and NCUA pursuant to 12 CFR
			 § 741.204(b) may accept deposits for any purpose from any source up to the
			 aggregate of 20% of its existing deposits or $3 million, whichever is greater.
			 Said deposits shall not exceed federal or excess share insurance limits. Any
			 acceptance of deposits made under 209 CMR 50.06(3)(d) shall be made in
			 accordance with a detailed written policy approved and reviewed annually by the
			 credit union's directors.
2.
Non-low Income Designated Credit Unions
. A credit
			 union that is not designated as low income may accept deposits for any purpose
			 from any credit union insured by the NCUA up to 20% of its existing deposits or
			 $3 million, whichever is greater. Said deposits shall not exceed federal or
			 excess share insurance limits. Any acceptance of deposits made under 209 CMR
			 50.06(3)(d) shall be made in accordance with a detailed written policy approved
			 and reviewed annually by the credit union's directors.
(e)
Investments in Land,
			 Building, Improvements, and Equipment
. A credit union may invest
			 in land, building, improvements and equipment. Notice is required if a credit
			 union invests more than $1,000,000 per one parcel of real estate or purchase of
			 equipment per transaction.
(f)
Charitable Donation Accounts
. A credit union may
			 establish charitable donation accounts. All charitable donation accounts shall
			 conform to the procedural and substantive requirements of 12 CFR §
			 721.3(b)(2).