Bill > H1033

This bill aims to strengthen the state credit union charter by making the following key changes: 1. It allows mutual banks or subsidiary banking institutions to merge or consolidate into a single credit union upon approval by the Commissioner. 2. It enables a mutual bank to be converted into a credit union chartered under Chapter 171, without being subject to the requirements for organizing and commencing a new credit union. The depositors of the mutual bank would become members of the new credit union. 3. It expands the investment powers of credit unions, allowing them to invest in asset-backed securities, shares/stocks of organizations providing banking-related services, and activities of the Massachusetts Capital Growth Corporation, up to 10% of their assets. 4. It allows credit unions, savings banks, cooperative banks, and subsidiary banking institutions to merge or consolidate, with either as the surviving corporation. 5. It establishes a process for credit unions, mutual savings banks, and cooperative banks to convert into each other's charters, subject to regulatory approval and member/shareholder votes. The overall intent is to provide more flexibility and options for credit unions and other financial institutions to merge, convert, and expand their investment activities.