Notice Process to Conduct Certain Activities

(1) General. A credit union that meets the requirements of 209 CMR 50.04(1) may engage in any activity listed under 209 CMR 50.06(3), by providing written notice to and receiving a written non-objection from the Commissioner before commencing the activity. The notice must be submitted at least 30 days before the credit union intends to commence the activity. 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) a complete description of the activity conducted, (b) the credit union's investment in such activity, and (c) a confirmation that the activity will be conducted in accordance with Massachusetts and federal law. 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 the notice and non- objection requirements of 209 CMR 50.06: (a) Temporary Branch Offices. A credit union may establish and operate a temporary branch office, to be open at a designated site for less than a year or on an intermittent basis, subject to the investment limitations to purchase, hold and lease real estate suitable for the transaction of business, found at M.G.L. c. 171, § 75. (b) Shared Branch Offices. 1. Authority. A credit union may establish and operate a branch office on a shared basis with one or more credit unions or federal credit unions. Relocation and closure of any branch office shall be in accordance with the provisions of M.G.L. c. 171, §§ 8 and 75. 2. Credit Union Service Organizations. Shared branch offices may be established through a CUSO or by written agreement among two or more credit unions. Such CUSO shall comply with 209 CMR 50.08. 3. Mandatory safeguards. Any such CUSO or agreement shall establish adequate safeguards relative to credit union liability for employee breaches of member confidentiality; loss against fraud or dishonesty; and any other risks associated with the operation of a shared branch office. 4. Additional Notification. Additional notice to the Division is not required for every subsequent update in a nationwide shared branching network. 5. Maximum Investment. Shared branch offices shall be subject to the investment limitations to purchase, hold and lease real estate suitable for the transaction of business, found at M.G.L. c. 171, § 75. In the event of a conflict between the investment limitations of M.G.L. c. 171, § 75 and the maximum investment limitations of 209 CMR 50.08(3)(a)l.a. and b. governing CUSOs, the former provision shall control. (c) Employee Benefits Funded by Impermissible Investments. A credit union may provide employee benefits, including retirement benefits, to its employees and officers, individually or collectively with other credit unions, that are funded by impermissible investments in conformance with the procedural and substantive requirements of 12 CFR § 701.19. A credit union investment to fund an employee benefit plan obligation is not subject to the investment limitations of M.G.L. c. 171 and may purchase an investment that would otherwise be impermissible if the investment is directly related to the credit union's obligation or potential obligation under the employee benefit plan and the credit union holds the investment only for as long as it has an actual or potential obligation under the employee benefit plan. (d) Derivatives Authority. A credit union may engage in derivatives activities in conformance with the procedural and substantive requirements of 12 CFR § 703, Subpart B and 12 CFR § 741.219(b). (e) Pilot Investment Program. A credit union may participate in a pilot investment program in conformance with the procedural and substantive requirements of 12 CFR § 703.19(b)(1) through 12 CFR § 703.19(b)(9).