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Session Law

2010

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Chapter 284 AN ACT RELATIVE TO CREDIT UNION SHARES AND 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. Chapter 171 of the General Laws is hereby amended by striking out section 30, as appearing in the 2008 Official Edition, and inserting in place thereof the following section:-

Section 30. Every member of a credit union shall hold 1 share and may hold shares or make deposits, or both, therein, in his own name and he may jointly, with one or more persons, hold shares or make deposits, or both. An organizational member may purchase shares or make deposits; provided, however, that the total of the payments by all organizational members shall not exceed, at any time, 25 per cent of the assets of the credit union.

This section shall apply to members of credit unions which are insured by the National Credit Union Administration; provided, however, that no such credit union shall accept deposits or payments for shares for the account of a shareholder or depositor in excess of the amount which is insured by the National Credit Union Administration unless the excess is insured by the Massachusetts Credit Union Share Insurance Corporation pursuant to section 6D of chapter 294 of the acts of 1961.

SECTION 2. Section 32 of said chapter 171, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

A share or deposit authorized by section 30 may, if the directors of the credit union so determine, be received as a term share or deposit, subject to this section.

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, 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.

SECTION 4. Section 34 of said chapter 171, as so appearing, is hereby amended by striking out the first paragraph and inserting in place thereof the following paragraph:-

A share or deposit authorized by section 30 except club deposits, if the directors so determine, and if the share and deposit liabilities are insured in full under federal or state law, or both, may be received as a special notice account subject to this section.

Approved, August 9, 2010.


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