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Bill > H3675


MA H3675

MA H3675
Relative to interstate branching of a credit union and the Massachusetts Credit Union Insurance Corporation


summary

Introduced
03/27/2019
In Committee
04/04/2019
Crossed Over
Passed
Dead
12/31/2020

Introduced Session

191st General Court

Bill Summary

By Mr. Kafka of Stoughton, a petition (subject to Joint Rule 9) of Louis L. Kafka, Steven S. Howitt and James K. Hawkins 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. Financial Services.

AI Summary

This bill amends the laws governing the Massachusetts Credit Union Share Insurance Corporation (MCUSIC) in several ways: 1. It expands the geographic scope of MCUSIC to allow it to insure credit unions chartered in other New England states (Maine, New Hampshire, Vermont, New York, Connecticut, and Rhode Island) in addition to Massachusetts. 2. It updates the definitions of "Excess Member," "Federally Chartered Credit Union," and "State Chartered Credit Union" to reflect the expanded geographic scope. 3. It allows MCUSIC to examine and supervise "Excess Member" credit unions, including those outside of Massachusetts, to evaluate their risk to the insurance fund. 4. It requires Excess Member credit unions to obtain MCUSIC and regulatory approval before merging, consolidating, purchasing assets/liabilities of other institutions, or establishing out-of-state branches. 5. It allows MCUSIC to invest up to 15% of its assets in investments not specifically enumerated in the law, with commissioner approval and oversight, to potentially enhance the fund's returns.

Committee Categories

Business and Industry

Sponsors (3)

Last Action

Accompanied a study order, see H5160 (on 12/01/2020)

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