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April 26, 2024 Clear | 52°F
The 193rd General Court of the Commonwealth of Massachusetts

AN ACT RELATIVE TO CREDIT UNION DEPOSITS.

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 29 of chapter 171 of the General Laws, as appearing in the 2002 Official Edition, is hereby amended by striking out the fifth paragraph and inserting in place thereof the following paragraph:-

The board of directors shall determine the rate of interest to be paid on deposits which shall not exceed 6 per cent.

SECTION 2. Section 30 of said chapter 171, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

Every member of a credit union shall hold 1 share and may hold shares or make deposits, or both, therein, in his own name to an amount not exceeding, in the aggregate, $100,000 and he may jointly, with 1 or more persons, hold shares or make deposits, or both, to an amount not exceeding, in the aggregate, $125,000 exclusive of club deposits. A member of a credit union having assets of $4,000,000 or more may hold shares or make deposits, or both, in his own name, to an amount not exceeding, in the aggregate, $500,000 and may jointly, with 1 or more persons, hold shares or make deposits or both to an amount not exceeding, in the aggregate, $600,000 exclusive of club accounts. A member of a credit union having assets of $30,000,000 or more may hold shares or make deposits or both, in his own name, to an amount not exceeding, in the aggregate, $600,000 and may jointly, with 1 or more persons, hold shares or make deposits or both, to an amount not exceeding, in the aggregate, $1,200,000. The limitations on deposits and shares provided herein shall be exclusive of accumulated interest or dividends.

SECTION 3. Said chapter 171 is hereby further amended by striking out section 33, as so appearing, and inserting in place thereof the following section:-

Section 33. A credit union may also contract, on terms to be agreed upon, with a person eligible for membership in the credit union or a member of such person's family, for the deposit at intervals within a period of 12 months, of sums of money, to be known as club deposits, in the aggregate not in excess of $10,000, and may pay interest or dividends thereon in the amount decided by its board of directors, but at no higher rate than that paid on its regular deposits or as regular dividends on shares.

Approved July 29, 2004.