§ 10 — Investments, sales, loans and places of deposit; approval; acquisition of real estate; leases; tax exemption; limit; special contingent surplus

Massachusetts § 10

• Jurisdiction: Massachusetts
• Part I: ADMINISTRATION OF THE GOVERNMENT
• Title XXII: CORPORATIONS
• Ch. 176B: MEDICAL SERVICE CORPORATIONS

Text

Section 10. No investment, sale or loan shall be made by a medical service corporation which has not first been authorized by the board of directors, or by a committee thereof charged with the duty of investing or loaning the funds of the corporation; nor shall any deposit be made in a bank or banking institution unless such bank or banking institution has first been approved as a bank of deposit by the board of directors or said committee thereof, and unless the vote authorizing such investment, sale or loan or approval of the place of deposit has been duly recorded in the books of the corporation.With the approval of the commissioner, a medical service corporation, alone or with one or more nonprofit corporations, the real estate of which is exempt from taxation, may acquire real estate it reasonably expects to use in whole or in part for conducting the business of such corporation or corporations. Real estate so acquired may be leased to other occupants, and when so leased, the exemption from taxation on real estate granted by this chapter or granted by any provisions of the general laws to a co-owner shall not apply to that portion of the real estate which is so leased unless such other occupant occupies the leased premises for its purposes and is (a) a charitable organization, as defined in section five of chapter fifty-nine, or (b) a nonprofit corporation organized under the laws of the commonwealth to provide any kind of health services, the real estate of which is exempt from taxation. Nothing in this paragraph shall limit the general investment powers set forth in this section.The commissioner may require any such corporation after the first full year of doing business to accumulate and maintain a special contingent surplus, over and above its reserves and liabilities, in such amount as the commissioner may deem proper.A medical service corporation may invest in, acquire and hold the capital stock of any corporation as a subsidiary which is an insurance company authorized to transact the business of providing health insurance to persons residing outside the commonwealth, and which is duly licensed by the commissioner of insurance, provided that the medical service corporation shall notify the commissioner at least thirty days prior to entering into any agreement or contract to make such investment or acquisition.