Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Section 2 of chapter 294 of the acts of 1961, as appearing in section 1 of chapter 306 of the acts of 1973, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

In the election of directors and, except as otherwise provided, in voting on any matter legally before a meeting, each regular and excess member by a delegate authorized by its board of directors shall have one vote; provided, that such delegate shall not vote by proxy nor shall any one delegate represent more than one such member.

SECTION 2. Section 3 of said chapter 294, as so appearing, is hereby amended by striking out the second paragraph and inserting in place thereof the following paragraph:-

Subject to the provisions of section five of this act, the by-laws may be amended, altered or repealed in whole or in part by a thirty day written notice to all regular and excess members containing a notice of the time and place of the meeting and proposed changes; provided, however, that such alteration, amendment or repeal shall be by vote of two-thirds of the delegates present and voting at the meeting.

SECTION 3. Section 6A of said chapter 294, as appearing in section 3 of chapter 278 of the acts of 1982, is hereby amended by adding the following two paragraphs:-

Regular members shall, at least semi-annually, file with the corporation financial reports in such form and containing such information as the corporation may require. The corporation may also require further information and reports as it deems necessary. Financial reports shall contain a certification by the president, a vice-president, the treasurer or any other officer designated by the board of directors of the reporting regular member, that the reports are true and accurate to the best of such certifier's knowledge and belief.

The corporation may, with the approval of the commissioner, following notice to the member and a hearing before the commissioner, audit or cause an audit to be made of a member at such member's expense whenever it appears that the financial condition of such member threatens to impair the insurance fund.

SECTION 4. Section 6B of said chapter 294, as so appearing, is hereby amended by striking out subparagraph (b) and inserting in place thereof the following subparagraph:-

(b) If a regular or excess member has conducted its business in an unsafe or unsound manner, or has knowingly or negligently permitted any of its officers or agents to violate any provision of any law or regulation to which such member is subject.

SECTION 5. Said section 6B of said chapter 294, as so appearing, is hereby further amended by striking out the last paragraph and inserting in place thereof the following paragraph:-

In the event of termination of the insurance of a regular or excess member, the commissioner may order such member to give such notice to its shareholders and depositors as he may require. In the event of the failure to give such required notice, the commissioner is authorized to give such notice in such manner as he may determine and, for such purpose, such member shall provide a list of all names and addresses of its depositors and shareholders to the commissioner.

SECTION 6. Section 6D of said chapter 294, as so appearing, is hereby amended by striking out subparagraph (b) and inserting in place thereof the following subparagraph:-

(b) Such excess member shall enter into a contract of insurance with the corporation which shall contain provisions regarding the terms and conditions and the fee and assessment structure under which insurance for excess shares and deposits may be issued, maintained, renewed or terminated. Upon the withdrawal of a regular member to excess membership, the corporation shall retain all assessments theretofore paid to it pursuant to section seven and section eight. Excess members which have withdrawn from regular membership shall be entitled to receive a proportionate share of any dividends declared pursuant to the provisions of paragraph (d) of section seven. Fees and assessments levied pursuant to this section shall be added to and become part of the share insurance fund and shall be available for distribution in the event of the dissolution and liquidation of the corporation, in the manner and to the extent provided in section ten.

SECTION 7. Said section 6D of said chapter 294, as so appearing, is hereby further amended by adding the following subparagraph:-

(f) Excess members shall, at least semi-annually, file with the corporation financial reports in such form and containing such information as the corporation may require. The corporation may also require further information and reports from such excess members as it deems necessary. Financial reports shall contain a certification by the president, a vice-president, the treasurer or any other officer designated by the board of directors of the reporting excess member, that the reports are true and correct to the best of the certifier's knowledge and belief.

SECTION 8. Section 6F of said chapter 294, as so appearing, is hereby amended by striking out the last sentence and inserting in place thereof the following sentence:- If the acquiring financial institution is itself a regular member of the corporation, but not otherwise, the corporation shall continue to insure the shares and deposits so acquired, and the acquiring member shall succeed to the same rights with respect to the retained assessments of the acquired member as are provided to inactive members by paragraph (b) of section six C or as are provided to excess members by paragraph (b) of section six D.

SECTION 9. The first paragraph of section 6G of said chapter 294, as so appearing, is hereby amended by inserting after the word "six C", in line 15, the words:- or paragraph (b) of section six D.

SECTION 10. Said chapter 294 is hereby amended by striking out section 13, inserted by chapter 193 of the acts of 1975, and inserting in place thereof the following section:-

Section 13. Every regular and excess member shall display at each place of business maintained by it a sign indicating that its share and deposit accounts are insured by the Massachusetts Credit Union Share Insurance Corporation and shall include in all of its advertisements a statement that its share and deposit accounts are so insured. The corporation, with the approval of the commissioner, shall determine the form of such signs and the substance of any such statement.