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. The first paragraph of section 30 of chapter 171 of the General Laws, as appearing in the 1994 Official Edition, is hereby amended by striking out the first sentence and inserting in place thereof the following sentence:- Every member of a credit union shall hold one share and may hold shares or make deposits, or both, therein, in his own name to an amount not exceeding, in the aggregate, one hundred thousand dollars and he may jointly, with one or more persons, hold shares or make deposits, or both, to an amount not exceeding, in the aggregate, one hundred and twenty-five thousand dollars, exclusive of club deposits.

SECTION 2. Said chapter 171 is hereby further amended by inserting after section 31 the following section:-

Section 31A. A credit union may execute and deliver for a member such guarantees as may be incidental or usual in the transfer of investment securities.

SECTION 3. The third paragraph of section 59 of said chapter 171, as appearing in the 1994 Official Edition, is hereby amended by striking out subparagraph (1) and inserting in place thereof the following subparagraph:-

(1) A credit union may make loans to an amount not exceeding twelve thousand five hundred dollars and, if the assets of such credit union are four million dollars or more, to an amount not exceeding fifteen thousand dollars if evidenced by the unendorsed and unsecured note of the borrower.

SECTION 4. Said section 59 of said chapter 171, as so appearing, is hereby further amended by striking out, in line 56, the word "fifteen" and inserting in place thereof the word:- twenty.

SECTION 5. Section 62 of said chapter 171, as so appearing, is hereby amended by striking out, in line 3, the word "forty" and inserting in place thereof the following word:- fifty-five.

SECTION 6. Section 67 of said chapter 171 is hereby amended by adding the following paragraph:-

(v) notwithstanding the provisions of paragraph (k), a credit union may invest in mortgage backed securities originated by said credit union when such securities are guaranteed by the Federal National Mortgage Association or the Federal Home Loan Mortgage Corporation.