Code of Maine Rules
02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION
029 - BUREAU OF FINANCIAL INSTITUTIONS
Chapter 134 - CREDIT UNION SERVICE CORPORATIONS

SUMMARY: Section 864 of Title 9-B M.R.S., the Maine Banking Code, authorizes state-chartered credit unions to invest in service corporations. Section 131(37) identifies specific functions in which a service corporation, whether owned by a state-chartered financial institution or a state-chartered credit union, may engage. The same section also grants the Superintendent authority to promulgate regulations granting state-chartered credit union service corporations the power to engage in any activity authorized under federal law for service corporations owned or controlled by federally-chartered credit unions. That authority is granted with the intent of maintaining competitive equality between federally-chartered and state-chartered credit unions. This regulation establishes guidelines for state-chartered credit unions' investment in service corporations so that they may engage in activities permissible for service corporations owned by federally-chartered credit unions.

This regulation repeals and replaces the former Regulation 34 originally effective on August 21, 1996. Rulemaking is in response to Public Law 2017, Chapter 143. Chapter 143 amended 9-B M.R.S. §445 's requirements for notifying the Superintendent of investments in service corporations and amended 9-B M.R.S. §864 's limitation on the amount of such investments. This rulemaking also updates citations to federal law that were recodified since the last promulgation of Regulation 34.

STATUTORY AUTHORITY: 9-B MRS §§111, 131(37) , 215, 828 , 864