reglab/statecodes huggingface dataset:
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 43.00 - Audit And Security Requirements For Credit Unions › Section 43.04 - Verification of Members' Accounts

Current through Register 1525, July 5, 2024
The Auditing Committee shall verify or cause to be verified all
				share/deposit and loan accounts with the records of the treasurer not less
				frequently than once every two years. The verification of members' accounts
				shall be made using either of the following methods:
(1) Controlled verification of 100% of
			 members' share/deposit and loan accounts; or
(2) Controlled random statistical sampling
			 method that accurately tests sufficient accounts in both number and scope to
			 provide assurance that the General Ledger accounts are fairly stated and that
			 members' accounts are properly safeguarded. That sampling procedure must
			 provide each member account an equal chance of being selected.
Records of those accounts verified and the procedures used to
				perform the verification must be maintained and retained until the next
				verification of members' accounts is completed.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 43.00 - Audit And Security Requirements For Credit Unions › Section 43.05 - Audit Frequency, Independence, and Standards

Current through Register 1525, July 5, 2024
(1)
			 Your credit union must be audited annually for each fiscal year. The audit must
			 cover the period elapsed since the prior annual audit. The requirements differ
			 based on the credit union's total asset size, as described in 209 CMR
			 43.05(1)(a) through (c).
(a) If your credit
			 union has less than $5,000,000 in total assets, the Auditing Committee can
			 choose to either:
1. have the audit performed
			 by an independent certified public accountant;
2. conduct an Auditing Committee Review;
			 or
3. engage a qualified individual
			 other than a certified public accountant to conduct such a review.
If you choose to conduct an Auditing Committee Review, in all
				cases the review shall follow, at a minimum, the procedures specified in the
				NCUA Supervisory Committee Guide for Federal Credit Unions. Each of your credit
				union's annual audits shall, at a minimum, test the credit union's assets,
				liabilities, equity, income, and expenses for existence, proper cut off,
				valuations, ownership, disclosures and classification, and internal
				controls.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 43.00 - Audit And Security Requirements For Credit Unions › Section 43.06 - Requirements for a Certified Public Accountant Audit

Current through Register 1525, July 5, 2024
A credit union shall obtain an opinion audit by an independent
				certified public accountant for any fiscal year during which any one of the
				following conditions is present:
(1)
			 the credit union's Auditing Committee has not conducted an annual audit under
			 209 CMR
			 43.03;
(2) the credit union's annual audit did not
			 meet the audit requirements of
			 209 CMR
			 43.05; or
(3) the credit union has experienced serious
			 and persistent recordkeeping deficiencies, which continue to exist past a
			 usual, expected, or reasonable period of time. The Commissioner shall consider
			 persistent recordkeeping deficiencies serious if there is a reasonable doubt
			 that the financial condition of the credit union is accurately and fairly
			 presented in the credit union's statements and that management practices and
			 procedures are sufficient to safeguard members' share accounts.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 43.00 - Audit And Security Requirements For Credit Unions › Section 43.07 - Audit Engagement

Current through Register 1525, July 5, 2024
In the event the Auditing Committee utilizes a certified public
				accountant or qualified individual, in all cases the Auditing Committee must
				contract the engagement directly. The qualified individual must sign an
				engagement letter and the Auditing Committee must acknowledge it therein prior
				to the commencement of the engagement. At a minimum, the letter must specify
				the terms and conditions of the engagement, the basis of accounting to be used,
				the rate of compensation to be paid, the target date of delivery of the written
				audit report, and access to workpapers by the Commissioner. Such engagement
				letter must be noted in the Auditing Committee minutes and made available to
				the Division upon request. The auditor shall deliver the audit report directly
				to the Auditing Committee.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 43.00 - Audit And Security Requirements For Credit Unions › Section 43.08 - Audit Workpapers

Current through Register 1525, July 5, 2024
The Auditing Committee or its independent auditors shall be
				responsible for the preparation and the maintenance of workpapers and other
				documentation used to support annual audits. The Auditing Committee shall make
				such workpapers and other documentation available for review by the
				Commissioner.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 43.00 - Audit And Security Requirements For Credit Unions › Section 43.09 - Security and Protection of Credit Unions

Current through Register 1525, July 5, 2024
A credit union which complies with the provisions of 12 CFR
				Part 748 (Security Program, Report of Suspected Crimes, Suspicious
				Transactions, Catastrophic Acts and Bank Secrecy Act Compliance) or other
				applicable regulations of the NCUA, which regulations govern substantially the
				same subject matter as is governed by 209 CMR 43.09, shall be deemed to be in
				compliance with M.G.L. c. 167, § 1A and 209 CMR 43.09.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.01 - Purpose and Scope

Current through Register 1525, July 5, 2024
The purpose of
				209 CMR 45.00 is to establish
				procedures and requirements for the licensing, regulation and supervision of
				licensees under the provisions of M.G.L. c. 167F, § 4, c. 169, and c.
				169A.
Nothing contained in
				209 CMR 45.00 shall limit the
				ability of the Commissioner to consider other information in determining
				whether or not to approve an application, or to require additional information
				from applicants and licensees for the enforcement of M.G.L. c. 167F, § 4,
				c. 169, and c. 169A.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.03 - Procedures to Apply for or Renew a License

Current through Register 1525, July 5, 2024
(1)
Applications
. Each applicant for a license shall
			 submit an application for licensure through the NMLS, containing such
			 information as the Commissioner may require.
(2)
Requirements
. An
			 applicant shall be required to submit detailed information supporting the
			 following general requirements:
(a)
Financial Responsibility
.
1. An applicant for a check seller or foreign
			 transmittal agency license shall demonstrate and provide the Commissioner with
			 evidence of its financial responsibility and submit a sworn statement that the
			 applicant meets the foregoing requirement.
2. An applicant for a check casher license
			 shall demonstrate and provide the Commissioner with evidence of its financial
			 responsibility and submit a sworn statement that the applicant meets the
			 following requirements. An applicant for a check casher license shall
			 demonstrate and maintain a net worth of not less than $25,000 and maintain
			 adequate liquidity for the nature and volume of the applicant's
			 business.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.04 - Additional Application Procedures for Check Casher Mobile Units

Current through Register 1525, July 5, 2024
(1) If the licensed check casher business is
			 to be conducted from a mobile unit, the applicant must provide the following
			 information, in addition to the information required under
			 209 CMR
			 45.03:
(a)
			 the Massachusetts motor vehicle registration number or other satisfactory
			 identification of the mobile unit;
(b) a description of the area in which the
			 applicant seeks to utilize the mobile unit;
(c) information demonstrating the adequacy of
			 the vehicle for the transaction of cashing a check, draft, or money order,
			 including, but not limited to, provisions relative to security; and
(d) other information which the Commissioner
			 may require.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.05 - Licensing Standards

Current through Register 1525, July 5, 2024
(1) A license to engage
			 in the business of check selling, check cashing or foreign transmittal will be
			 issued to an applicant if the Commissioner, upon review of the application and
			 all other relevant information, determines that the applicant has met all of
			 the requirements of
			 209 CMR
			 45.03 or
			 45.04,
			 M.G.L. c. 167F, § 4, c. 169, or c. 169A, as applicable.
(2)
(a) The
			 Commissioner may deny an application if the Commissioner upon review of the
			 application and other relevant information, determines that the applicant has
			 not satisfied the requirements of
			 209 CMR
			 45.03 or
			 45.04,
			 M.G.L. c. 167F, § 4, c. 169, or c. 169A, as applicable.
(b) The Commissioner may also deny such an
			 application or the renewal thereof if the applicant has:
1. violated any provisions of M.G.L. c. 167F,
			 § 4, c. 169, or c. 169A, or
			 209 CMR 45.00;
2. violated or engaged in a pattern of
			 violations of any state or federal law applicable to the conduct of the
			 licensed business, or any rule, regulation, or administrative order or
			 directive promulgated thereunder;
3. conducted or will conduct its business in
			 an unsafe or unsound manner;
4.
			 engaged in conduct which has resulted in the suspension or revocation of its
			 license to engage in the business of a check seller, foreign transmittal
			 agency, check casher, or any other business by any licensing authority of any
			 state;
5. made a false statement of
			 a material fact in the application for a license;
6. an adverse credit history as determined by
			 the Commissioner in a current credit report; or
7. ever:
a.
			 been convicted of or pleaded
nolo contendere
to a felony;
			 or
b. committed an act involving
			 fraud or deceit, which act is substantially related to the qualifications,
			 functions, or duties of a person engaged in the licensed business.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.06 - Schedule of Fees for Check Cashers

Current through Register 1525, July 5, 2024
(1) A licensed
			 check casher shall complete and maintain a Check Cashing Fee Schedule in a
			 format substantially similar to the model form set forth in
			 209 CMR 45.99:
Appendix A
.
(a) A licensed
			 check casher may, at its discretion, employ any reasonable format and graphic
			 design or add or delete columns as necessary in the model form Check Cashing
			 Fee Schedule set forth in
			 209 CMR 45.99:
Appendix A
; and
(b) The Check Cashing Fee Schedule must
			 clearly convey the required fee information.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.07 - Fee Disclosure Requirements for Foreign Transmittal Agencies

Current through Register 1525, July 5, 2024
Compliance with the pre-payment disclosure requirements set
				forth in
				12
				CFR 1005.31 shall constitute compliance with
				209 CMR 45.07 regarding pre-payment disclosure requirements applicable to
				licensed foreign transmittal agencies.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.08 - Transaction Receipts for Check Cashers

Current through Register 1525, July 5, 2024
A licensed check casher shall provide each person cashing a
				check, draft, or money order with a receipt of each transaction stating
				thereon:
(1) the name, license type,
			 and number of the licensee;
(2) the
			 amount of each check, draft, or money order to be cashed, which may be
			 aggregated if the fee for each transaction is the same;
(3) the fee charged for each check, draft, or
			 money order;
(4) the total amount
			 received by the customer for each check, draft, or money order
			 cashed;
(5) the date of the
			 transaction; and
(6) the following
			 statement:
If you have experienced any problems or difficulties with your
				transaction(s), please contact [Licensee's complaint contact info]. If they are
				unable to assist you, or you would like to file a consumer complaint against
				the licensee, please contact the Massachusetts Division of Banks Consumer
				Assistance Unit at 617-956-1500 ext 501, or visit the Division of Banks website
				at
www.mass.gov/dob
.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.09 - Transaction Receipts for Foreign Transmittal Agencies

Current through Register 1525, July 5, 2024
Compliance with the receipt disclosure requirements set forth
				in 12 CFR 1005.31 shall
				constitute compliance with 209 CMR 45.09 regarding transaction receipts
				applicable to licensed foreign transmittal agencies.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.10 - Office Locations

Current through Register 1525, July 5, 2024
(1)
Office
			 Locations
. A licensee shall obtain a separate license in order to
			 conduct business at another location; however, 209 CMR 45.10(1) shall not apply
			 to check sellers.
(2)
Security
. A licensee shall maintain adequate security
			 for the protection of its customers' funds and for the safety of its customers
			 and employees.
(3)
Relocations and Closings
. A licensee shall obtain the
			 Commissioner's prior written approval of any change in or closing of a
			 Massachusetts location; however, 209 CMR 45.10(3) shall not apply to check
			 sellers. Written applications to the Commissioner shall be submitted prior to
			 any such change or closing and shall contain such other information as the
			 Commissioner may require.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.11 - Books and Records

Current through Register 1525, July 5, 2024
(1) Each licensee shall
			 comply with
			 209 CMR
			 48.00:
Licensee Record Keeping
and
			 shall keep and use its books, records, and accounts in a manner which will
			 allow the Commissioner to determine whether the licensee is complying with the
			 provisions of M.G.L. c. 167F § 4; c. 169; or c. 169A,
			 209 CMR 45.00; and state and
			 federal laws and regulations, as applicable.
(2) Each licensee shall maintain quarterly
			 financial statements that include a Balance Sheet and a year-to-date Income
			 Statement that are prepared in accordance with U.S. generally accepted
			 accounting principles and may be prepared internally or by an independent
			 certified public accountant.
(3) A
			 licensed check casher shall also maintain, at a minimum, the following records:
(a) A daily record of all check cashing
			 transactions occurring each day, which shall be limited to the following,
			 provided a sufficient audit trail is available through records obtainable from
			 the licensee's bank account(s):
1. The amount
			 of the check cashed; and
2. The
			 amount of the fee charged for cashing the check.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.12 - Reports to the Commissioner

Current through Register 1525, July 5, 2024
(1)
Check Seller Annual Statement
. On or before February
			 14th of each year, each check seller shall file a
			 sworn statement in such form as the Commissioner shall prescribe, setting forth
			 the names and business addresses of its authorized agents and any other
			 information required by the Commissioner.
(2)
Check Seller
			 Notifications
. On or before the 15th of
			 May, and the 14th of August and November of each
			 year, each check seller shall notify the Commissioner of any change in the list
			 of authorized agents contained in the Annual Statement referenced in 209 CMR
			 45.12(1), and shall file the names of any additional authorized agents
			 appointed or of any authorized agents whose authority was revoked by the Check
			 Seller.
(3)
Check
			 Casher Annual Report
. On or before March
			 31st of each year, each licensed check casher shall
			 file a copy of the completed Check Cashing Fee Schedule required pursuant to
			 209 CMR
			 45.06 and an annual report with the
			 Commissioner for the preceding calendar year in such form as the Commissioner
			 shall prescribe. Any amendment made to the Check Cashing Fee Schedule shall be
			 filed with the Division in writing forthwith. Such filing shall state the date
			 on which the amended Check Cashing Fee Schedule became or will become
			 effective.
(4)
Foreign
			 Transmittal Agency Annual Report
. On or before March
			 31st of each year, each licensed foreign transmittal
			 agency shall file an annual report with the Commissioner for the preceding
			 calendar year in such form as the Commissioner shall prescribe.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.13 - Client Funds Accounts for Foreign Transmittal Agencies

Current through Register 1525, July 5, 2024
(1) All funds of clients deposited with a
			 licensed foreign transmittal agency for transmittal to a foreign country shall
			 be deposited in one or more client funds accounts maintained at a federally
			 insured bank or credit union. Said account(s) shall contain only those funds
			 collected for transmittal.
(2) A
			 licensed foreign transmittal agency may offset funds in the client funds
			 account(s) in order to effect the transmittal of funds to foreign countries in
			 accordance with the directions of clients.
(3) A licensed foreign transmittal agency
			 shall maintain complete and accurate client funds account records. The licensed
			 foreign transmittal agency shall produce upon request all documents pertaining
			 to client funds account activity, including, but not limited to, bank
			 statements; check stubs; canceled, voided, or unused checks; deposit tickets;
			 and reconciliations or other comparable account records.
(4) No person licensed as a foreign
			 transmittal agency shall commingle money collected from clients for
			 transmission abroad with its own funds or use any part of a client's money in
			 the conduct of the licensed foreign transmittal agency's business.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.14 - Notice of Significant Events and Proposed Change in Ownership or Personnel

Current through Register 1525, July 5, 2024
(1) A licensee shall be
			 required to notify the Division in writing within one business day of the
			 occurrence of any of the following significant developments:
(a) A licensee files for bankruptcy or
			 reorganization;
(b) A licensee
			 receives:
1. Notification to cease and desist
			 in any state;
2. Notification of
			 the initiation of license denial, suspension, or revocation procedures in any
			 state; or
3. Notification of other
			 formal regulatory action against the licensee in any state;
(c) An officer, director, member,
			 or principal employee of a licensee being charged with a criminal offense that
			 is in any way related to check cashing, check selling, or money transmittal
			 activities of a licensee, including, but not limited to, the handling or
			 reporting of moneys received or instruments sold; or
(d) An officer, director, member, principal
			 employee, or manager of an authorized agent being convicted of any
			 felony.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.15 - License Disclosure

Current through Register 1525, July 5, 2024
(1) A licensee shall
			 disclose the type and number of its license(s) in all advertisements used in
			 the Commonwealth which advertise or refer to the licensed business; however,
			 209 CMR 45.15(1) shall not apply to an Internet banner advertisement or pop-up
			 advertisement.
(2) A licensee shall
			 prominently post the official letter of license issuance, or an authorized copy
			 thererof issued by the Commissioner, in its place of business. No licensee
			 shall operate under a name other than the name on the license issued by the
			 Commissioner.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.16 - Prohibited Practices

Current through Register 1525, July 5, 2024
Grounds for license revocation, the issuance of cease and
				desist orders, or other disciplinary action shall include, but not be limited
				to, the prohibited acts and practices provided in 209 CMR 45.16(1) and
				(2).
(1)
Prohibited
			 Practices of Licensees Generally
. It shall be a prohibited act or
			 practice for a licensee to:
(a) Imply that the
			 licensee is a branch of, or associated with, any agency or department of the
			 federal government or of any state or municipal government, including, but not
			 limited to, use of any seal, insignia, envelope, or other format which
			 simulates that of any government department or agency unless licensed by, under
			 contract with, or authorized in writing by said department or agency;
(b) Imply that the licensee is a bank, act in
			 any manner so as to lead the public to believe that the licensee's business is
			 that of a bank, or otherwise violate the unauthorized banking provisions of
			 M.G.L. c. 167, § 37;
(c) Fail
			 to provide a receipt to customers for check selling, check cashing, or foreign
			 transmittal services rendered pursuant to
			 209 CMR 45.00;
(d) Fail to comply with the notice
			 requirements of
			 209
			 CMR 45.14;
(e) Fail to maintain books and records as
			 required by
			 209 CMR 45.11
			 and
			 209 CMR
			 48.00:
Licensee Record
			 Keeping
;
(f) Fail to
			 register as a money services business with the Financial Crimes Enforcement
			 Network if the licensee is required to be registered under applicable Financial
			 Crimes Enforcement Network rules and regulations;
(g) Fail to maintain adequate liquidity for
			 the nature and volume of its business;
(h) Fail to establish and implement policies
			 and procedures for the monitoring and oversight of authorized agents to ensure
			 that such authorized agents are complying with pertinent state and federal laws
			 and regulations, including, but not limited to, the provisions of
			 209 CMR 45.00;
(i) Fail to disclose the type and number of
			 its license(s) in all advertisements pursuant to
			 209 CMR 45.15;
(j) Accept any fees or charges
			 which were not disclosed as required by state or federal law, including, but
			 not limited to, the provisions of
			 209 CMR 45.00; or
(k) Knowingly participate in fraud or in an
			 attempt to defraud.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.18 - Compliance

Current through Register 1525, July 5, 2024
Compliance with any applicable provisions of the Bank Secrecy
				Act, 31 CFR Chapter X, the Electronic Fund Transfer Act, 12 CFR Part 1005
				(Regulation E) and the corresponding Appendices and Official Interpretations,
				which do not conflict with M.G.L. c. 167F, § 4, c. 169, c. 169A,
				209 CMR 45.00 or an advisory
				ruling of the Commissioner, shall be deemed to be compliance with M.G.L. c.
				167F, § 4, c. 169, and c. 169A and
				209 CMR 45.00.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 45.00 - The Licensing and Regulation of Money Services Businesses › Section 45.99 - Appendix A

Current through Register 1525, July 5, 2024
*HECK CASHING FEE SCHEDULE
FEES CHARGED TO CASH A CHECK MAY VARY AMONG BUSINESSES.
YOU MAY WISH TO COMPARE THESE CHARGES TO THOSE OF OTHER CHECK
				CASHERS AND FINANCIAL INSTITUTIONS IN CONSIDERING THE TOTAL COST OF YOUR
				TRANSACTION.
*OMPLETE FEE SCHEDULE OF
____________________________
Name of Licensee & License #
Type of Check
Percent Charged For Checks of $ to $
Percent Charged For Checks of $ to $
Percent Charged For Checks of $ to $
Payroll
_____%
_____%
_____%
Insurance
_____%
_____%
_____%
Government
_____%
_____%
_____%
Lottery
_____%
_____%
_____%
Personal
_____%
_____%
_____%
Money Orders
_____%
_____%
_____%
Other (Specify)
______
_____%
_____%
_____%
______
_____%
_____%
_____%
EXAMPLE: FOR A CHECK OF $100.00 ON WHICH THE FEE
						  CHARGED IS 1% YOUR TOTAL CHARGE IS $1.00 AND THE AMOUNT YOU RECEIVE BACK IS
						  $99.00.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.11 - Purposes and Scope

Current through Register 1525, July 5, 2024
(1)
Purposes
. 209 CMR 46.00 is intended to carry out the
			 purposes of the Community Reinvestment Act (CRA) by establishing the framework
			 and criteria by which the Commissioner assesses an institution's record of
			 helping to meet the credit needs of its entire community, including low- and
			 moderate-income neighborhoods, consistent with the safe and sound operation of
			 the institution, and by providing that the Commissioner takes that record into
			 account in considering certain applications pursuant to
			 209 CMR
			 46.29.
(2)
Scope
.
(a)
General
. 209 CMR
			 46.00 applies to all institutions as defined in
			 209 CMR
			 46.12.
(b)
Foreign Institution
			 Acquisitions and National Banking Associations
. 209 CMR 46.00 also
			 applies to a Massachusetts branch of a bank chartered by another state, the
			 federal government, or a foreign country that results from an acquisition.
			 Enforcement of 209 CMR 46.00 relative to out-of-state national banking
			 associations with a branch in the Commonwealth shall be the responsibility of
			 the Office of the Comptroller of the Currency, pursuant to the Riegle-Neal
			 Interstate Banking and Branching Efficiency Act of 1994 (
			 Public Law
			 103-123 ).
(c)
Advisory
			 Rulings
. Each official interpretation by the Federal Financial
			 Institutions Examination Council (FFIEC) or appropriate federal banking
			 regulatory agency of the regulations issued under the Community Reinvestment
			 Act (
			 12 USC
			 2901
et seq
.) that is
			 similar in substance to a provision of 209 CMR 46.00 shall, until rescinded by
			 the FFIEC, be deemed by the Commissioner to be an advisory ruling issued under
			 M.G.L. c. 30A, § 8; provided, however, that the Commissioner may reject an
			 interpretation of the FFIEC or appropriate federal banking regulatory
			 agency.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.21 - Performance Tests, Standards, and Ratings, in General

Current through Register 1525, July 5, 2024
(1)
Performance Tests and
			 Standards
. The Commissioner assesses the CRA performance of an
			 institution in an examination as follows:
(a)
Lending, Investment, and Service Tests
. The
			 Commissioner applies the lending, investment, and service tests, as provided in
			 209 CMR 46.22
			 through
			 46.24, in evaluating
			 the performance of an institution, except as provided in 209 CMR 46.21(1)(b)
			 through (e).
(b)
Community Development Test for Wholesale or Limited Purpose
			 Institutions
. The Commissioner applies the community development
			 test for a wholesale or limited purpose institution, as provided in
			 209
			 CMR 46.25, except as provided in 209 CMR
			 46.21(1)(d).
(c)
Small
			 Institution Performance Standards
. The Commissioner applies the
			 small institution performance standards as provided in
			 209 CMR
			 46.26 in evaluating the performance of a
			 small institution or an institution that was a small institution during the
			 prior calendar year, unless the institution elects to be assessed as provided
			 in 209 CMR 46.21(1)(a), (b), or (d). However, credit unions which are small
			 institutions will be evaluated in the context of their membership by-law
			 provisions, as prescribed under M.G.L. c. 171, § 9. An institution may
			 elect to be assessed as provided in 209 CMR 46.21(1)(a) only if it collects and
			 reports the data required for other institutions under
			 209 CMR
			 46.42.
(d)
Strategic Plan
.
			 The Commissioner evaluates the performance of an institution under a strategic
			 plan if the institution submits, and the Commissioner approves, a strategic
			 plan as provided in
			 209 CMR
			 46.27.
(e)
Credit Union Performance
			 Standards
. The Commissioner applies the lending and service tests,
			 as provided in
			 209 CMR 46.22 and
			 46.24 in evaluating
			 the performance of a credit union, except as provided in 209 CMR 46.21(1)(c)
			 and (d). The investment test does not apply to credit unions. However, a credit
			 union that achieves at least a "satisfactory" rating under the lending and
			 service tests may warrant consideration for an overall rating of "high
			 satisfactory" or "outstanding" depending on the credit union's performance in
			 making qualified investments and community development loans to the extent
			 authorized under law, in accordance with
			 209 CMR
			 46.61(6)(c).
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.22 - Lending Test

Current through Register 1525, July 5, 2024
(1)
Scope of
			 Test
.
(a) The lending test
			 evaluates an institution's record of helping to meet the credit needs of its
			 assessment area(s) through its lending activities by considering an
			 institution's home mortgage, small business, small farm, and community
			 development lending. If consumer lending constitutes a substantial majority of
			 an institution's business, the Commissioner will evaluate the institution's
			 consumer lending in one or more of the following categories: motor vehicle,
			 credit card, home equity, other secured, and other unsecured loans. In
			 addition, at an institution's option, the Commissioner will evaluate one or
			 more categories of consumer lending, if the institution has collected and
			 maintained, as required in
			 209 CMR
			 46.42(3)(a), the data for
			 each category that the institution elects to have the Commissioner
			 evaluate.
(b) The Commissioner
			 considers originations and purchases of loans. The Commissioner will also
			 consider any other loan data the institution may choose to provide, including
			 data on loans outstanding, commitments and letters of credit.
(c) An institution may ask the Commissioner
			 to consider loans originated or purchased by consortia in which the institution
			 participates or by third parties in which the institution has invested only if
			 the loans meet the definition of community development loans and only in
			 accordance with 209 CMR 46.22(4). The Commissioner will not consider these
			 loans under any criterion of the lending test except the community development
			 lending criterion.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.23 - Investment Test

Current through Register 1525, July 5, 2024
(1)
Scope of
			 Test
. The investment test evaluates an institution's record of
			 helping to meet the credit needs of its assessment area(s) through qualified
			 investments that benefit its assessment area(s) or a broader statewide or
			 regional area that includes the institution's assessment area(s). A credit
			 union will not be evaluated under the investment test except as provided under
			 209 CMR
			 46.61(6)(c).
(2)
Exclusion
.
			 Activities considered under the lending or service tests may not be considered
			 under the investment test.
(3)
Affiliate Investment
. At an institution's option, the
			 Commissioner will consider, in its assessment of an institution's investment
			 performance, a qualified investment made by an affiliate of the institution, if
			 the qualified investment is not claimed by any other institution.
(4)
Disposition of Branch
			 Premises
. Donating, selling on favorable terms, or making
			 available on a rent-free basis a branch of the institution that is located in a
			 predominantly minority neighborhood to a minority depository institution or
			 women's depository institution (as defined in
			 12 U.S.C.
			 2907(b) ) will be considered
			 as a qualified investment.
(5)
Performance Criteria
. The Commissioner evaluates the
			 investment performance of an institution pursuant to the following criteria:
(a) the dollar amount of qualified
			 investments;
(b) the innovativeness
			 or complexity of qualified investments;
(c) the responsiveness of qualified
			 investments to credit and community development needs
(d) the degree to which the qualified
			 investments assist existing low- and moderate-income residents to be able to
			 remain in affordable housing in their neighborhoods; and
(d) the degree to which the qualified
			 investments are not routinely provided by private investors.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.24 - Service Test

Current through Register 1525, July 5, 2024
(1)
Scope of
			 Test
. The service test evaluates an institution's record of
			 helping to meet the credit needs of its assessment area(s) by analyzing both
			 the availability and effectiveness of an institution's systems for delivering
			 retail banking services and the extent and innovativeness of its community
			 development services.
(2)
Area(s) Benefited
. Community development services must
			 benefit an institution's assessment area(s) or a broader statewide or regional
			 area that includes the institution's assessment area(s).
(3)
Affiliate
			 Service
. At an institution's option, the Commissioner will
			 consider, in its assessment of an institution's service performance, a
			 community development service provided by an affiliate of the institution, if
			 the community development service is not claimed by any other
			 institution.
(4)
Performance Criteria -- Retail Banking Services
. The
			 Commissioner evaluates the availability and effectiveness of an institution's
			 systems for delivering retail banking services, pursuant to the following
			 criteria:
(a) the current distribution of the
			 institution's branches among low-, moderate-, middle-, and upper-income
			 geographies;
(b) in the context of
			 its current distribution of the institution's branches, the institution's
			 record of opening and closing branches, particularly branches located in low-
			 and moderate-income geographies or primarily serving low- and moderate- income
			 individuals;
(c) the availability
			 and effectiveness of alternative systems for delivering retail banking services
			 (
e.g
., ATMs, ATMs not owned or operated by or exclusively for
			 the institution, banking by telephone or computer, loan production offices, and
			 bank-at-work or bank-by-mail programs) in low- and moderate-income geographies
			 and to low- and moderate-income individuals; and
(d) the range of services provided in low-,
			 moderate-, middle-, and upper- income geographies and the degree to which the
			 services are tailored to meet the needs of those geographies.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.25 - Community Development Test for Wholesale or Limited-purpose Institutions

Current through Register 1525, July 5, 2024
(1)
Scope of Test
.
			 The Commissioner assesses a wholesale or limited purpose institution's record
			 of helping to meet the credit needs of its assessment area(s) under the
			 community development test through its community development lending, qualified
			 investments, or community development services.
(2)
Designation as a Wholesale or
			 Limited Purpose Institution
. In order to receive a designation as
			 a wholesale or limited purpose institution, an institution shall file a
			 request, in writing, with the Commissioner, at least three months prior to the
			 proposed effective date of the designation. If the Commissioner approves the
			 designation, it remains in effect until the institution requests revocation of
			 the designation or until one year after the Commissioner notifies the
			 institution that the Commissioner has revoked the designation on his or her own
			 initiative.
(3)
Performance Criteria
. The Commissioner evaluates the
			 community development performance of a wholesale or limited purpose institution
			 pursuant to the following criteria:
(a) the
			 number and amount of community development loans (including originations and
			 purchases of loans and other community development loan data provided by the
			 institution, such as data on loans outstanding, commitments, and letters of
			 credit), qualified investments, or community development services;
(b) the use of innovative or complex
			 qualified investments, community development loans, or community development
			 services and the extent to which the investments are not routinely provided by
			 private investors; and
(c) the
			 institution's responsiveness to credit and community development
			 needs.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.26 - Small Institution Performance Standards

Current through Register 1525, July 5, 2024
(1)
Performance
			 Criteria
.
(a)
Small
			 institutions with Assets of Less than $250 million
. The
			 Commissioner evaluates the record of a small institution that is not, or that
			 was not during the prior calendar year, an intermediate small institution, of
			 helping to meet the credit needs of its assessment area pursuant to the
			 criteria set forth in 209 CMR 43.26(2).
(b)
Intermediate Small
			 Institutions
. The Commissioner evaluates the record of a small
			 institution that is, or that was during the prior calendar year, an
			 intermediate small institution, of helping to meet the credit needs of its
			 assessment area(s) pursuant to the criteria set forth in 209 CMR 46.26(2) and
			 (3). A credit union that is, or that was during the prior calendar year an
			 intermediate small institution will be evaluated pursuant to the criteria set
			 forth in 209 CMR 46.26(2) and under the service test as provided in
			 209 CMR
			 46.24.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.27 - Strategic Plan

Current through Register 1525, July 5, 2024
(1)
Alternative Election
. The Commissioner will assess an
			 institution's record of helping to meet the credit needs of its assessment
			 area(s) under a strategic plan if:
(a) the
			 institution has submitted the plan to the Commissioner as provided for in 209
			 CMR 46.27;
(b) the Commissioner has
			 approved the plan;
(c) the plan is
			 in effect; and
(d) the institution
			 has been operating under an approved plan for at least one year.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.28 - Assigned Ratings

Current through Register 1525, July 5, 2024
(1)
Ratings
			 in General
. Subject to 209 CMR 46.28(2) and (3), the Commissioner
			 assigns to an institution a rating of "outstanding", "high satisfactory",
			 "satisfactory", "needs to improve", or "substantial noncompliance" based on the
			 institution's performance under the lending, investment and service tests, the
			 community development test, the small institution performance standards, the
			 intermediate small institution standards, or an approved strategic plan, as
			 applicable.
(2)
Lending, Investment, and Service Tests
. The
			 Commissioner assigns a rating for an institution assessed under the lending,
			 investment, and service tests in accordance with the following principles:
(a) an institution that receives an
			 "outstanding" rating on the lending test receives an assigned rating of at
			 least "satisfactory";
(b) an
			 institution that receives an "outstanding" rating on both the service test and
			 the investment test and a rating of at least "high satisfactory" on the lending
			 test receives an assigned rating of "outstanding";
(c) no institution may receive an assigned
			 rating of "satisfactory" or higher unless it receives a rating of at least
			 "satisfactory" on the lending test;
(d) an institution that receives a
			 "satisfactory" rating on the lending test and either the service or investment
			 test, and receives a rating of "needs to improve" on the third test, receives
			 an assigned rating of "satisfactory"; and
(e) a credit union that receives a
			 "satisfactory" rating on the lending test and receives a rating of "needs to
			 improve" on the service test, receives an assigned rating of
			 "satisfactory".
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.29 - Effect of CRA Performance on Applications

Current through Register 1525, July 5, 2024
(1)
CRA Performance
. Among other factors, the Commissioner
			 takes into account the record of performance under the CRA of each institution
			 submitting applications for the following:
(a)
			 establishment of any branch by all state-chartered institutions;
(b) establishment of Massachusetts branches
			 by out-of-state banks, out-of-state federal banks, and foreign banks;
(c) a merger or consolidation with or the
			 acquisition of assets or assumption of liabilities of any state-chartered
			 institution by a Massachusetts bank or bank holding company, including its
			 subsidiaries;
(d) a merger or
			 consolidation with or the acquisition of assets or assumption of liabilities of
			 a state-chartered institution by an out-of-state bank, an out-of-state federal
			 bank, or an foreign bank or bank holding company, including its
			 subsidiaries;
(e) a wholly-owned
			 subsidiary pursuant to M.G.L. c. 167F, § 2, paragraph 7;
(f) an automated teller machine;
(g) a mobile electronic branch; and
(h) any other approval of the Commissioner,
			 provided that there are no other countervailing financial safety and soundness
			 or other policy considerations.
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.41 - Assessment Area Delineation

Current through Register 1525, July 5, 2024
(1)
In
			 General
. An institution shall delineate one or more assessment
			 areas within which the Commissioner evaluates the institution's record of
			 helping to meet the credit needs of its community. The Commissioner does not
			 evaluate the institution's delineation of its assessment area(s) as a separate
			 performance criterion, but the Commissioner reviews the delineation for
			 compliance with the requirements of 209 CMR 46.41.
(2)
Geographic Area(s) for
			 Wholesale or Limited Purpose Institutions
. The assessment area(s)
			 for a wholesale or limited purpose institution must consist generally of one or
			 more MSAs/CBSAs (using the MSA/CBSA boundaries that were in effect as of
			 January 1st of the calendar year in which the
			 delineation is made) or one or more contiguous political subdivisions, such as
			 counties, cities, or towns, in which the institution has its main office,
			 branches, and deposit-taking ATMs.
(3)
Geographic Area(s) for other
			 Institutions
. The assessment area(s) for an institution other than
			 a wholesale or limited purpose institution or a credit union under 209 CMR
			 46.41(8) must:
(a) consist generally of one
			 or more MSAs/CBSAs (using the MSA/CBSA boundaries that were in effect as of
			 January 1st of the calendar year in which the
			 delineation is made) or one or more contiguous political subdivisions, such as
			 counties, cities, or towns; and
(b)
			 include the geographies in which the institution has its main office, its
			 branches, and its deposit-taking ATMs, as well as the surrounding geographies
			 in which the institution has originated or purchased a substantial portion of
			 its loans (including home mortgage loans, small business and small farm loans,
			 and any other loans the institution chooses, such as those consumer loans on
			 which the institution elects to have its performance assessed).
Code of Massachusetts Regulations › 209 CMR - DIVISION OF BANKS AND LOAN AGENCIES › Title 209 CMR 46.00 - Community Reinvestment › Section 46.42 - Data Collection, Reporting, and Disclosure

Current through Register 1525, July 5, 2024
(1) Institutions will comply with all data
			 collection, reporting and disclosure regulations as promulgated by the
			 appropriate Federal banking agencies.
(2) Credit unions are exempted from the data
			 collection, reporting, and disclosure requirements for small business, small
			 farm, and community development loans; provided, however, if the credit union,
			 except a credit union that meets the definition of a small institution, is
			 subject to reporting under the Board of Governors of the Federal Reserve
			 System's implementing regulations for the Home Mortgage Disclosure Act ( 12 CFR
			 203 ), it shall report the location of each home mortgage loan application,
			 origination, or purchase outside the MSAs/CBSA in which the credit union has a
			 home or branch office (or outside any MSA/CBSA) in accordance with the
			 requirements of 12 CFR 203.
(3)
Optional Data Collection and Maintenance
.
(a)
Consumer Loans
.
			 An institution may collect and maintain in machine readable form (as prescribed
			 by the Commissioner) data for consumer loans originated or purchased by the
			 institution for consideration under the lending test. An institution may
			 maintain data for one or more of the following categories of consumer loans:
			 motor vehicle, credit card, home equity, other secured, and other unsecured. If
			 the institution maintains data for loans in a certain category, it shall
			 maintain data for all loans originated or purchased within that category. The
			 institution shall maintain data separately for each category, including for
			 each loan:
1. A unique number or
			 alpha-numeric symbol that can be used to identify the relevant loan
			 file;
2. The loan amount at
			 origination or purchase;
3. The
			 loan location; and
4. The gross
			 annual income of the borrower that the institution considered in making its
			 credit decision.