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 24 of chapter 171 of the General Laws is hereby amended by adding the following subdivision:- `tuc (H) CREDIT CARDS.

With the prior written approval of the commissioner, after the board of directors submits a plan to the commissioner for the issuance of credit cards, a credit union may issue and honor credit cards subject to the conditions, limitations and requirements herein stated.

A credit union may issue credit cards for the purpose of making loans to one or more members. Such loans shall be made by such means as the board of directors shall determine, including but not limited to, paying to, or for the account of any member, the amount of any sales slip, voucher or other evidence of any transaction in which goods or services were sold or cash advanced to said member in reliance on a credit card issued by the credit union. The credit union may advance cash to any member holding a credit card issued by the credit union or by any other person or corporation who, directly or indirectly, has agreed to pay to or for the account of such member, the amount of cash advanced by it in reliance on credit cards issued by said other person or corporation. Such credit cards, loans, advances and documents used in connection therewith shall be in such form and upon such terms and conditions as the board of directors shall determine, including but not limited to terms and conditions as to revocation, rates of interest and other charges, maturity dates and security, if any.

The total obligation of one or more members pursuant to any credit card agreement entered into under the provisions of this subdivision shall not exceed fifteen hundred dollars; and the aggregate balance of such loans and advances made by any such corporation at any time outstanding, shall not exceed ten per cent of its deposits and shares.