Bill > S766

This bill modifies Massachusetts state law to allow municipalities to deposit public funds into credit unions, both state and federal, with specific limitations and provisions. The legislation amends several sections of Massachusetts General Laws to explicitly include credit unions as eligible financial institutions for municipal deposits. Currently, municipalities are restricted to depositing funds in certain types of banks, and this bill expands those options to include credit unions. A key restriction is that credit unions can only accept public funds up to 25% of their total assets, which helps protect both the municipalities and the credit unions from potential financial risks. The bill updates multiple legal sections to ensure consistent language across different chapters of Massachusetts law, effectively broadening the financial options available to local governments while maintaining prudent safeguards on the volume of public funds that can be deposited in these institutions.

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https://malegislature.gov/Bills/194/S766