Bill > H5625

This bill makes several changes to the Massachusetts Credit Union Share Insurance Corporation (MCUSIC), which is a corporation that insures shares (deposits) in credit unions. First, it requires the MCUSIC's board of directors to meet at least quarterly and establishes that a majority of directors constitutes a quorum. Second, it expands the MCUSIC's authority to assist troubled member credit unions, allowing it to merge or facilitate the sale of assets for such credit unions, and to provide financial assistance through purchasing assets, making loans, covering differences between book and fair value of assets, or depositing funds into a credit union's reserve accounts, all with the approval of the commissioner of banks. Third, it clarifies that the MCUSIC can borrow money from members and others, pledging its assets as security, and that the MCUSIC is considered an "organization member" of its member credit unions, meaning credit unions can lend money to the MCUSIC. Finally, it broadens the investment powers of the MCUSIC, allowing it to invest in credit union service organizations and, with the commissioner's approval and under strict conditions, to invest in a wider range of securities and stocks, including those not specifically listed in existing law, to protect depositors.