General Laws of Massachusetts - Chapter 171 Credit Unions - Section 59A Credit cards; issuance; limitations

Section 59A. A credit union may issue credit cards for the purpose of making loans to one or more members. Such loans shall be made by such means as the board of directors shall determine including, but not limited to, paying to, or for the account of, any member, the amount of any sales slip, voucher or other evidence of any transaction in which goods or services were sold or cash advanced to said member in reliance on a credit card issued by the credit union. The credit union may advance cash to any member holding a credit card issued by the credit union or by any other person or corporation who, directly or indirectly, has agreed to pay to or for the account of such member, the amount of cash advanced by it in reliance on credit cards issued by said other person or corporation. The credit cards, loans, advances and documents used in connection therewith shall be in a form and upon terms and conditions as the board of directors shall determine and set forth in a written plan including, but not limited to, terms and conditions as to revocation, rates of interest and other charges, maturity dates and security, if any.

The total obligation of one or more members pursuant to any credit card agreement entered into under the provisions of this subdivision shall not exceed ten thousand dollars; and the aggregate balance of principal of such loans and advances outstanding at any one time shall not exceed twenty percent of the assets of a credit union.

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Last modified: September 11, 2015