Public Documents of Massachusetts

[CHAP. 310, ACTS OF 1890.]

AN ACT IN RELATION TO THE BUSINESS OF CO-OPERATIVE

Be it enacted, etc., as follows:

BANKING.

banks to be

SECTION 1. Except as is hereinafter provided, no per- Co-operative son, association or corporation shall carry on the business incorporated. of accumulating the savings of its members and loaning to them such accumulations in the manner of a co-operative bank within this Commonwealth, unless incorporated under the laws thereof for such purpose.

porations to

with the

treasurer of the

Commonwealth.

repealed by

SECT. 2. The board of commissioners of savings Foreign corbanks may authorize any such association or corporation make a deposit duly established under the laws of another state to carry on such business in the Commonwealth, but said association or corporation shall not transact such business in this Commonwealth unless it shall first deposit with the treasurer of the Commonwealth the sum of twenty-five thousand dollars and thereafter a sum equal to fifteen per cent. of the deposits made in such association or corporation by citizens of the Commonwealth, the amount of percentage of deposits so required to be determined from time to time by said board of commissioners of savings banks; or in lieu thereof the whole or any part of said sum may consist of any of the securities named in the first, second and third clauses of section twenty of chapter one hundred and sixteen of the Public Statutes and acts amendatory thereof, at their par value, and the said deposit shall be held in trust by said treasurer for the protection and indemnity of the residents of the Commonwealth with whom such associations or corporations respectively have done or may transact business. Said moneys or property shall be paid out Disposition of or disposed of only on the order of some court of competent posited.

* Repealed, and superseded by first, second and third clauses of section 21, chapter 317, Acts of 1894.

This section chap, 256, Acts

of 1896. (See

P. xxiii.)

moneys de

Examinations by commis. sioners.

jurisdiction made on due notice to the attorney-general of the Commonwealth, and upon such notice to the creditors and shareholders of such association or corporation as the court shall prescribe. For the purpose of ascertaining the business and financial condition of any such association or corporation doing or desiring to do such business, said board may make examinations of such associations or corporations at such times and at such places as said board may desire, the expense of such examinations being paid by the association or corporation examined, and may also require returns to be made to them in such form and at Authority to do such times as they may elect. Whenever, upon examination or otherwise, it is the opinion of said board that any such association or corporation is transacting business in such manner as to be hazardous to the public, or its condition is such as to render further proceedings by it hazardous to the public, said board shall revoke or suspend the authority given to said association or corporation, but this section shall not prevent such a bank or institution, incorporated under the laws of another state, from loaning money upon mortgages of real estate located within the Commonwealth.*

business may be

revoked.

To conform with requirements within sixty days.

Penalties.

SECT. 3. Every such person, association or corporation transacting business in the Commonwealth at the time of the passage of this act shall, within sixty days after such passage, conform to the requirements of this act.

SECT. 4. Whoever violates any provision of the preceding sections shall be punished by a fine not exceeding one thousand dollars; and any provision thereof may on petition be enforced by injunction issued by a justice of the supreme judicial court or of the superior court.

SECT. 5. This act shall take effect upon its passage. [Approved May 21, 1890.

Section repealed by chapter 286, Acts of 1896.

[CHAP. 403, ACTS OF 1891.]

AN ACT TO AUTHORIZE THE COMMISSIONERS OF SAVINGS
BANKS TO PREVENT FOREIGN CO-OPERATIVE BANKING

doing business hazardous to

the public.

Whenever, upon examination or otherwise, it is the Corporations may be preopinion of the board of commissioners of savings banks vented from that any association or corporation established under the laws of another state, for the purpose of carrying on the business of accumulating the savings of its members and loaning to them such accumulations in the manner of a co-operative bank, and authorized to do business in this Commonwealth, is transacting such business in a manner hazardous to the public, or its condition is such as to render further proceedings by it hazardous to the public, said board shall revoke or suspend the authority given to such association or corporation if it has been authorized to do business in the Commonwealth as aforesaid, and if not so authorized said board shall notify it to cease the transaction of such business; and in either case such association or corporation shall thereafter have no authority to transact such business within the Commonwealth. But noth- Loans upon ing herein contained shall prevent such association or real estate in corporation from loaning money upon mortgages of real wealth. estate located within the Commonwealth. [Approved June 11, 1891.

[CHAP. 286, ACTS OF 1896.]

AN ACT RELATIVE TO THE TRANSACTION OF THE BUSI-
NESS OF CO-OPERATIVE BANKING BY FOREIGN CORPORA-
TIONS.

Be it enacted, etc., as follows:

SECTION 1. Section two of chapter three hundred and ten of the acts of the year eighteen hundred and ninety

mortgages of

the Common

xxvi

is hereby repealed; provided, however, that any association or corporation which at the passage of this act is duly licensed by the board of commissioners of savings banks to transact business in this Commonwealth, under the provisions of said section, may be allowed to continue business, subject to all the conditions and restrictions of such license and the provisions of said chapter three hundred and ten as existing previous to the passage of this

act.

SECT. 2. This act shall take effect upon its passage. [Approved April 14, 1896.

INDEX

TO SUBJECTS CONTAINED IN THE STATUTES RELATING TO
CO-OPERATIVE BANKS.

Agreement of association; what to set forth, .

Annual returns,

Authority of foreign corporations to do business may be revoked,

Bids for loans may be a rate of interest,.