Bill > S735

This bill aims to strengthen the state credit union charter by: 1. Allowing mutual banks or subsidiary banking institutions to merge or consolidate into a single credit union upon approval by the Commissioner of the Department of Banks. 2. Enabling the conversion of a mutual bank into a credit union chartered under Chapter 171, without being subject to the requirements for the organization and commencement of a new credit union. 3. Expanding the investment options for credit unions, including asset-backed securities, shares or obligations of organizations providing banking-related services, and participation in the activities of the Massachusetts Capital Growth Corporation. 4. Allowing credit unions to merge or consolidate with savings banks, cooperative banks, or subsidiary banking institutions, with either as the surviving corporation. 5. Providing a detailed process for the conversion of a credit union into a mutual savings bank, cooperative bank, or federal mutual savings institution, and vice versa, subject to approval by the Commissioner and specific disclosure requirements. The bill aims to provide more flexibility and investment options for credit unions, while also streamlining the process for mergers, consolidations, and conversions involving credit unions and other financial institutions in Massachusetts.

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https://malegislature.gov/Bills/192/S735