SECTION 1. Section 1 of chapter 171 of the General Laws, as appearing in the 2014 Official Edition, is hereby amended by striking out, in lines 43 and 44, the words “, having a usual place of business within the commonwealth and”.

SECTION 2. Section 6D of chapter 294 of the acts of 1961 as appearing in section 4 of chapter 115 of the acts of 1996 is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

The excess shares and deposits of excess members deposited in the main office or any branch office thereof shall be insured in full by the corporation, subject to the following conditions and limitations:

SECTION 3. Said chapter 294 of the acts of 1961 is hereby amended by striking out section 1 and inserting in place thereof the following section:-

Section 1. There is hereby constituted a corporation under the name of Massachusetts Credit Union Share Insurance Corporation, hereinafter referred to as the corporation, for the purpose of creating and maintaining a fund for the insurance of shares and deposits of members of the Central Credit Union Fund, Inc. and of credit unions which are established under the laws of the commonwealth or of any other state or of the United States and which become regular or excess members of the corporation, as hereinafter provided.

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MEMORANDUM OF THE SECRETARY OF THE COMMONWEALTH IN RESPECT TO THE PETITION OF LOUIS L. KAFKA AND OTHERS THAT THE MASSACHUSETTS CREDIT UNION SHARE INSURANCE CORPORATION BE AUTHORIZED TO CREATE AND MAINTAIN A FUND FOR THE INSURANCE OF SHARES AND DEPOSITS OF MEMBERS OF THE CENTRAL CREDIT UNION FUND, INC.

May 10, 2017

To: The Honorable Senate and House of Representatives

On May 8, 2017 the Clerk of the House of Representatives transmitted the above-referenced petition to me with a request for a memorandum pursuant to the provisions of General Laws Chapter 3 § 7.

The Massachusetts Credit Union Share Insurance Corporation (hereinafter referred to as the “Corporation”) was organized by Chapter 294 of the Acts of 1961 for the purpose of creating and maintaining a fund for the issuance of shares and deposits of members of credit unions established under the laws of the Commonwealth.  Since its inception, numerous special acts have been adopted amending the provisions of law relative to the Corporation.  Most recently, Chapter 253 of the Acts of 2014 amended Chapter 294 of the Acts of 1961 to provide the corporation with certain powers and privileges including the ability to own or lease real and personal property and to invest in other business entities or credit unions as permitted by the Commissioner and approved by 2/3 vote of its board of directors.

The bill before you seeks to amend Chapter 294 of the Acts of 1961 to include the purpose of creating and maintaining a fund for the insurance of shares and deposits of members of the Central Credit Union Fund, Inc. in addition to credit unions established under the laws of the commonwealth and which are regular or excess members of the corporation.  It also amends section 6D to eliminate the requirement that branch offices of excess members be located in the commonwealth in order to be insured in full by the corporation.  Finally, the bill amends Section 1 of Chapter 171 of the General Laws by deleting the words, “having a usual place of business within the commonwealth” from the definition of organization member.

        Special legislation is necessary to accomplish the amendment.  No fee is required by a corporation of this type.  This office has no opinion on the merits of the legislation.

Respectfully submitted,

William Francis Galvin

Secretary of the Commonwealth

WFG/lf