General Laws of Massachusetts - Chapter 171 Credit Unions - Section 61 Loans for purchase of manufactured homes

Section 61. A credit union may make a loan for the purpose of financing the purchase of a movable dwelling, hereinafter called a manufactured home, containing living facilities suitable for year-round occupancy by one family, including permanent provision for eating, sleeping, cooking and sanitation; provided, however, that (a) such manufactured home is to be maintained as a residence of the purchaser; (b) such manufactured home will, within ninety days after purchase, be located at a manufactured housing community or other semipermanent site within the commonwealth or within a radius of thirty-five miles of the credit union office without regard to geographical location; (c) the principal amount of such loan, including interest and other costs, shall not exceed eighty percent of the purchase price of such manufactured home, excluding any taxes, transportation expenses, insurance premiums, registration fees and other costs paid or required to be paid by the purchaser in connection with such purchaser in connection with such purchase, or thirty-five thousand dollars, whichever is less; (d) such loan is required to be repaid in substantially equal monthly installments within a period of not more than twenty-five years after the date of such purchase; and (e) the note or other instrument evidencing such loan shall expressly grant to such credit union a security interest in such manufactured home and shall include such provisions as the credit committee may deem necessary for the protection of such credit union’s security interest including, specifically, provisions with respect to insurance, taxes, maintenance and repairs.

The aggregate balance of principal of such loans outstanding at any one time shall not exceed ten percent of the assets of a credit union.

Such credit union shall, promptly upon making any such loan, take all action necessary to perfect its security interest, including the filing of a financing statement with the appropriate filing office, as provided in article nine of chapter one hundred and six.

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Last modified: September 11, 2015