Credit Union Eligibility to Conduct Activities

(1) Financial, Managerial, and Community Requirements. In order to commence an activity pursuant to 209 CMR 50.00 et seq. a credit union at a minimum: (a) must be well or adequately capitalized, (b) shall not be in troubled condition, and (c) must have received at least a satisfactory CRA rating at the most recent examination conducted by the Commissioner pursuant to M.G.L. c. 167, § 14. (d) Additional requirements may apply depending on the specific activity and applicable federal regulation. (2) Policy and Procedure Requirements. Any credit union engaging in an activity pursuant to 209 CMR 50.00 et seq. must have in place adequate policies and procedures governing the performance of such activity by the credit union and its employees, to minimize any credit, market, liquidity, operational, legal and reputational risks to the credit union. Any credit union engaging in an activity pursuant to 209 CMR 50.00 et seq. is deemed to have agreed to conduct the activity in a manner consistent with applicable guidelines. (3) Review. Any activity undertaken by a credit union pursuant to 209 CMR 50.00 et seq. shall remain subject to periodic review by the Commissioner. The Commissioner may modify, curtail, rescind or otherwise limit a credit union's authority to conduct any activity pursuant to 209 CMR 50.00 et seq. through a formal or informal remedial action if a credit union ceases to meet any applicable requirements, based upon a report of examination conducted by the Commissioner or the NCUA, or based on other reliable information.