Bill > S575

This bill proposes to strengthen the state credit union charter in several ways: 1. It allows for mergers and consolidations between mutual banks, subsidiary banking institutions, and credit unions, with approval from the commissioner and a two-thirds vote of the boards and majority vote of the members/shareholders. 2. It permits credit unions to convert to mutual banks and vice versa, subject to certain conditions and approval from the commissioner. 3. It authorizes credit unions to receive payments on uninsured non-share accounts, subject to various requirements and limitations prescribed by the commissioner. 4. It expands the investment and activity powers of credit unions, allowing them to invest in real estate, micro-lending, and other financial activities deemed complementary by the commissioner. 5. It streamlines the process for credit unions to purchase loans or assume deposits/liabilities from other financial institutions. 6. It enables mergers and consolidations between credit unions and other banking institutions like savings banks and cooperative banks. 7. It establishes a detailed process and requirements for credit unions and mutual banks to convert between charters, including provisions related to member/shareholder disclosures and voting. Overall, the bill is aimed at enhancing the flexibility and competitiveness of state-chartered credit unions in Massachusetts.

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https://malegislature.gov/Bills/191/S575