MARLBOROUGH, Mass. (8/5/15)--In a key victory for the Cooperative Credit Union Association (CCUA), the Massachusetts Division of Banks and Loan Agencies has released its final amended regulations for regional interstate credit union branching.
The regulations, 209 CMR 58.00, will become effective on Aug. 14. The division has indicated that it will soon revise its Regulatory Bulletin 2.1-104 related to branching (Daily CU Scan Aug. 4).
The purpose of the regulations is to set forth requirements for application and notice for Massachusetts-chartered credit unions to establish a branch office up to 100 miles from the premises of the main office within the commonwealth, and in Connecticut, Maine, New Hampshire, New York, Rhode Island or Vermont.
The regulations also establish application requirements for out-of-state state-chartered credit unions and notice requirements for federally chartered credit unions with a principal place of business located in such other states to establish a branch office in the Commonwealth.
CCUA President/CEO Paul Gentile said it was a priority to advocate for regional interstate branching and reasonable rules that do not unduly add to the regulatory burden of any credit union.
The CCUA submitted both written comments and oral testimony at the public hearing on the regulations before Commissioner David Cotney. The final regulations reflect many of the requests made in the association’s testimony.
Importantly, the regulations maintain the application process advocated for by the association. Each credit union is required to submit an application for approval to its own prudential regulator. In essence, the home state of the institution will take the lead on the application process and supervision, including examinations. Massachusetts will be invited by and respond to activities coordinated by their colleague regulators.