General Laws of Massachusetts - Chapter 171 Credit Unions

• Massachusetts General Laws - Definitions - Chapter 171, Section 1
  As used in this chapter the following words shall, unless the context otherwise requires, have the following meanings:— “Central Credit Union Fund, Inc.”, the corporation...
• Massachusetts General Laws - Incorporation; agreement of association - Chapter 171, Section 2
  Ten or more persons, resident in the commonwealth, who have associated themselves by a written agreement with the intention of forming a corporation for the...
• Massachusetts General Laws - Notice to commissioner; investigation fee - Chapter 171, Section 3
  A notice of the intention of the subscribers to form such a credit union shall be given to the commissioner. Credit unions shall be organized...
• Massachusetts General Laws - First meeting of incorporators; notice - Chapter 171, Section 4
  The first meeting of the incorporators shall be called by a notice signed either by the incorporator who is designated in the agreement for the...
• Massachusetts General Laws - Articles of organization; certificate of incorporation - Chapter 171, Section 5
  The clerk or secretary and a majority of the directors elected at such first meeting shall make and sign, under penalties of perjury, articles of...
• Massachusetts General Laws - Transaction of business; authorization; approval of by-laws; failure to commence - Chapter 171, Section 6
  If it appears that all requirements of law have been complied with, that the credit union will have its shares and deposits insured by a...
• Massachusetts General Laws - Powers and permissible activities; regulations - Chapter 171, Section 6A
  Notwithstanding other provisions of this chapter, a credit union organized under the provisions of this chapter and insured by the National Credit Union Share Insurance...
• Massachusetts General Laws - Use of words “credit union” restricted; penalties - Chapter 171, Section 7
  No person, partnership or association, and no corporation, except one incorporated under this chapter or corresponding provisions of earlier laws or the Federal Credit Union...
• Massachusetts General Laws - Location changes; branches and depots; consolidations or mergers - Chapter 171, Section 8
  With the written consent of the commissioner, the location of the main office of a credit union may be changed. After notice and hearing as...
• Massachusetts General Laws - By-laws - Chapter 171, Section 9
  The shareholders of every such corporation shall make and adopt by-laws, consistent with law, for the government of its affairs. The by-laws shall provide for...
• Massachusetts General Laws - Amendment of by-laws - Chapter 171, Section 10
  The by-laws may be amended at any annual meeting, or at a special meeting called for the purpose, by a majority vote of all of...
• Massachusetts General Laws - Annual meetings; special meetings; notice; voting - Chapter 171, Section 11
  The annual meeting of the corporation shall be held at such time and place as the by-laws prescribe but not later than one hundred and...
• Massachusetts General Laws - Directors; terms; inability to pay judgment; classes - Chapter 171, Section 12
  The business and affairs of a credit union shall be managed by a board of not less than nine directors. The directors shall be elected...
• Massachusetts General Laws - Powers and duties of directors; quorum; removal from office; honorary president; participation in meetings by means of conference telephone or similar electronic communications equipment - Chapter 171, Section 13
  The board of directors shall have the general direction of the affairs of the corporation and shall meet as often as may be necessary, but...
• Massachusetts General Laws - Expulsion of members - Chapter 171, Section 14
  The board of directors may expel from a credit union any member who has not carried out his engagements with it, who has been convicted...
• Massachusetts General Laws - Officers and committee members; election and appointment; loan officers - Chapter 171, Section 15
  The directors, at a regularly scheduled meeting or at a special meeting of the directors called for the purpose and thereafter at their first meeting...
• Massachusetts General Laws - Auditing committee; powers and duties - Chapter 171, Section 16
  The auditing committee shall keep fully informed at all times as to the financial condition of the credit union. It shall hold meetings at least...
• Massachusetts General Laws - Credit committee; powers and duties - Chapter 171, Section 17
  The credit committee shall hold meetings at least once in each month, act on all applications for loans and approve, in writing, all personal loans...
• Massachusetts General Laws - Investment committee; powers and duties - Chapter 171, Section 18
  Investments authorized by section sixty-seven and other applicable sections may be made by the investment committee and a report of any such investments shall be...
• Massachusetts General Laws - Directors and officers; limitations on services with other financial institutions - Chapter 171, Section 19
  No person shall be a director of two credit unions at the same time and no person holding the office of president, treasurer, member of...
• Massachusetts General Laws - Compensation and expense reimbursement; restrictions on loans to directors - Chapter 171, Section 20
  No member of the board of directors shall receive compensation for his services as a member of the board or as a member of any...
• Massachusetts General Laws - Bond requirements - Chapter 171, Section 21
  The treasurer and all other officers and employees of a credit union having access to its cash or negotiable securities shall give bond to the...
• Massachusetts General Laws - Treasurer’s additional duties under chapter 167 and this chapter - Chapter 171, Section 22
  In addition to the duties imposed by law upon the treasurer of a credit union or the officer or employee thereof charged with the duties...
• Massachusetts General Laws - Nonfeasance, misfeasance and malfeasance; penalties - Chapter 171, Section 23
  Any officer, director, agent or employee of any credit union, who knowingly and wilfully does any act forbidden to him or to such credit union...
• Massachusetts General Laws - Indemnification of directors, officers and employees; liability insurance - Chapter 171, Section 24
  A credit union may indemnify its directors, officers, employees and other agents to whatever extent specified in or authorized by a by-law adopted pursuant to...
• Massachusetts General Laws - Insurance benefits for employees, officers and directors - Chapter 171, Section 25
  A credit union may provide group life insurance, group accident and health insurance or group medical, surgical or hospital insurance or benefits or all or...
• Massachusetts General Laws - Annual reports - Chapter 171, Section 26
  Within thirty days after the last business day of December in each year, every credit union shall make to the commissioner a report in such...
• Massachusetts General Laws - Balance sheets - Chapter 171, Section 27
  Each such corporation shall prepare a balance sheet, in accordance with generally accepted accounting principles, which presents fairly its condition as of the last business...
• Massachusetts General Laws - Preservation of records - Chapter 171, Section 28
  Each credit union shall preserve all of its records of original and final entry, including cancelled checks and withdrawal and deposit slips, for a period...
• Massachusetts General Laws - Shares and deposits; dividends - Chapter 171, Section 29
  The capital of a credit union shall be unlimited in amount and shall consist of shares and deposits. Shares shall be of a par value...
• Massachusetts General Laws - Limitations on shares and deposits - Chapter 171, Section 30
  Every member of a credit union shall hold 1 share and may hold shares or make deposits, or both, therein, in his own name and...
• Massachusetts General Laws - Negotiable withdrawal order accounts - Chapter 171, Section 31
  A credit union may authorize accounts that would allow withdrawals by negotiable or transferable instruments for the purpose of making transfers to third parties. Such...
• Massachusetts General Laws - Guarantees - Chapter 171, Section 31A
  A credit union may execute and deliver for a member such guarantees as may be incidental or usual in the transfer of investment securities.
• Massachusetts General Laws - Term share or deposit accounts; written plan - Chapter 171, Section 32
  A share or deposit authorized by section 30 may, if the directors of the credit union so determine, be received as a term share or...
• Massachusetts General Laws - Limited access deposit accounts - Chapter 171, Section 32A
  (a) A credit union may receive deposits into a deposit account held in the name of a natural person and established for personal, family or...
• Massachusetts General Laws - Club deposits - Chapter 171, Section 33
  A credit union may also contract, on terms to be agreed upon, with a person eligible for membership in the credit union or a member...
• Massachusetts General Laws - Special notice accounts - Chapter 171, Section 34
  A share or deposit authorized by section 30 except club deposits, if the directors so determine, and if the share and deposit liabilities are insured...
• Massachusetts General Laws - Trustee or custodian; profit-sharing or retirement plans - Chapter 171, Section 35
  A credit union may act as trustee or custodian under a profit-sharing plan instituted by a person, partnership or corporation within the meaning of section...
• Massachusetts General Laws - Designation of beneficiary; deferred compensation or retirement plans - Chapter 171, Section 36
  Any designation of any beneficiary in connection with and as provided by an instrument intended to establish a pension, profit-sharing or other deferred compensation or...
• Massachusetts General Laws - Plans providing loans guaranteed by Higher Education Assistance Corporation - Chapter 171, Section 37
  A credit union may receive shares or deposits, under the terms of a written plan approved by the commissioner, from any labor union, association, trust,...
• Massachusetts General Laws - Accounts for holding residential lease security deposits - Chapter 171, Section 38
  Any credit union may establish an account to receive deposits from a lessor acting as a trustee for funds received and held by such trustee...
• Massachusetts General Laws - Joint accounts - Chapter 171, Section 39
  Shares and deposits may be received and held in the name of a member with one or more persons as joint tenants, payable to such...
• Massachusetts General Laws - Trust accounts - Chapter 171, Section 40
  Subject to the foregoing limitations in respect to shares and deposits and requirements relative to notice, shares may be subscribed for and deposits may be...
• Massachusetts General Laws - Minors’ accounts - Chapter 171, Section 41
  Shares may be issued and deposits received in the name of a minor, and such shares and deposits may, in the discretion of the directors,...
• Massachusetts General Laws - Assessment of fees and charges - Chapter 171, Section 41A
  No credit union shall assess any fee, charge or other assessment against any account, established for personal, family or household purposes, of a depositor or...
• Massachusetts General Laws - Deceased depositors and shareholders - Chapter 171, Section 42
  Deposits or shares standing in the individual name of a deceased depositor or shareholder shall, except as otherwise provided in this chapter, be paid to...
• Massachusetts General Laws - Withdrawal of shares or deposits; notice - Chapter 171, Section 43
  A credit union may require from a shareholder or depositor ninety days’ notice of his intention to withdraw any or all of his shares and...
• Massachusetts General Laws - Return of vouchers - Chapter 171, Section 44
  A shareholder’s or depositor’s vouchers may be returned by mailing the same to him at his last known address, postage prepaid, and such shareholder or...
• Massachusetts General Laws - Pension or retirement fund payments - Chapter 171, Section 45
  A city, state, county or municipal treasurer or other official or private employer who receives a written request from a pensioner or retiree shall, at...
• Massachusetts General Laws - Lost, stolen or destroyed passbooks; application for payment or issuance of duplicate - Chapter 171, Section 46
  When a passbook or other instrument as evidence of a shareholder’s or a depositor’s account issued by any credit union has been lost, stolen or...
• Massachusetts General Laws - Agreements exculpating credit union for wrongful payment of account - Chapter 171, Section 47
  Any agreement between a depositor or shareholder and any credit union which exculpates such credit union when an account, or any part thereof, is paid...
• Massachusetts General Laws - Proceeding for collection of indebtedness; set off - Chapter 171, Section 48
  A person indebted to a credit union may, when proceeded against for the collection of such indebtedness or for the enforcement of any security therefor,...
• Massachusetts General Laws - Transfer of funds to reduce debt; notification - Chapter 171, Section 49
  Whenever a credit union, as a consequence of a default of a debt owed to said credit union by a depositor or shareholder, makes a...
• Massachusetts General Laws - Shares or accounts pledged as security; transfer, assignment or credit at foreclosure - Chapter 171, Section 50
  In the event that any shares or accounts which are pledged as security for any loan are sold, forfeited, transferred, assigned or credited for the...
• Massachusetts General Laws - Adverse claims to shares or deposits; process; bond - Chapter 171, Section 51
  No credit union shall be required to recognize an adverse claim to shares or a deposit standing on its books to the credit of or...
• Massachusetts General Laws - Reduction of accounts for equitable division of loss - Chapter 171, Section 52
  The supreme judicial court or any justice thereof sitting in equity may, on petition of a credit union or the board of the credit union,...
• Massachusetts General Laws - Disclosure to account holders of availability of funds - Chapter 171, Section 53
  For the purposes of this section, the following terms shall have the following meanings:— “Account”, negotiable withdrawal order account, savings deposit, share account or other...
• Massachusetts General Laws - Telephone service for account information - Chapter 171, Section 54
  Every credit union which advertises to the public any share, deposit or credit account shall maintain a telephone service for its customers to call and...
• Massachusetts General Laws - Non-English advertisements; notification of language of forms - Chapter 171, Section 55
  Any advertisement, within the commonwealth, in a language other than English made by a credit union to aid, promote or assist directly or indirectly any...
• Massachusetts General Laws - Advertisements concerning interest or dividends; restrictions - Chapter 171, Section 56
  Without the consent of the commissioner, no credit union shall advertise in any manner more than four months prior to the date on which interest...
• Massachusetts General Laws - Loans to members; applications; preferences; limitations - Chapter 171, Section 57
  The capital, deposits and surplus of a credit union shall be invested in loans to members, with approval of the credit committee, as provided in...
• Massachusetts General Laws - Liabilities of members; limitations - Chapter 171, Section 58
  The total liabilities to a credit union of a member for money borrowed under this chapter shall not at any one time exceed twenty percent...
• Massachusetts General Laws - Personal loans; limitations and restrictions - Chapter 171, Section 59
  A credit union may make personal loans as hereinafter provided. Each unsecured personal loan shall be payable within forty-eight months from the date of the...
• Massachusetts General Laws - Credit cards; issuance; limitations - Chapter 171, 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...
• Massachusetts General Laws - Loans for improvement of real estate - Chapter 171, Section 60
  A credit union may make loans to the owner of improved real estate for the purpose of financing the improvement, repair, alteration, rehabilitation thereof, or...
• Massachusetts General Laws - Loans for purchase of manufactured homes - Chapter 171, 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...
• Massachusetts General Laws - Loans for purchase of boats, campers or trailers - Chapter 171, Section 62
  A credit union may make a loan for the purpose of financing the purchase of a boat, camper or trailer to an amount not exceeding,...
• Massachusetts General Laws - Education loans - Chapter 171, Section 63
  A credit union may make loans to aid and assist students to fulfill a program of higher education as provided herein. Any student who has...
• Massachusetts General Laws - Installment loans - Chapter 171, Section 64
  Notwithstanding any prior provisions of the law to the contrary, a credit union may make a loan or a series of loans to its members...
• Massachusetts General Laws - Definitions for Secs. 65 to 65E - Chapter 171, Section 65
  As used in sections 65 to 65E, inclusive, the following words shall, unless the context otherwise requires, have the following meanings:— “Commissioner”, the commissioner of...
• Massachusetts General Laws - Mortgage loans by credit unions authorized; types; comprehensive written loan policies - Chapter 171, Section 65A
  (a) Credit unions may make or acquire loans and mortgage loans as specified in sections 65 to 65E, inclusive. A credit union may also subsequently...
• Massachusetts General Laws - Inspection of real estate securing loan upon default; appraisal of real estate upon excessive loan - Chapter 171, Section 65B
  (a) A credit union shall inspect the real estate securing a loan in the event that a payment of interest or principal upon the loan...
• Massachusetts General Laws - Reverse mortgages; disbursement of proceeds; program requirements; written materials provided to borrower; counseling program; priority of liens - Chapter 171, Section 65C
  (a) A credit union may make or acquire a reverse mortgage loan, pursuant to any program for reverse mortgage loans which has been submitted to...
• Massachusetts General Laws - Reverse mortgage loan requirements - Chapter 171, Section 65C1/2
  [Text of section applicable as provided by 2010, 258, Sec. 13 as amended by 2012, 194, Sec. 3.] (a) As used in this section the...
• Massachusetts General Laws - Mortgage loans which provide for variation in interest rate; conditions; variation in rate of amortization - Chapter 171, Section 65D
  (a) Any credit union may make or acquire mortgage loans evidenced by a note which provides for variation in the rate of interest over the...
• Massachusetts General Laws - Powers of credit unions - Chapter 171, Section 65E
  Every credit union, subject to limitations imposed by section 65 to section 65E, inclusive, or other general law, shall have the following powers and whatever...
• Massachusetts General Laws - Restrictions on real estate mortgage loans; credit union membership; location of mortgaged real estate; capitalization of assets - Chapter 171, Section 66
  In making mortgage loans on real estate pursuant to sections 65 to 65E, inclusive, a credit union shall be subject to the following conditions: (1)...
• Massachusetts General Laws - Investments - Chapter 171, Section 67
  A credit union may make the following investments: (a) in the shares of the Central Credit Union Fund, Incorporated, as authorized by section three of...
• Massachusetts General Laws - Membership in associations benefitting credit union or providing services - Chapter 171, Section 67A
  A credit union may, by vote of its board of directors, obtain membership in certain organizations and may make contributions and subscribe for services subject...
• Massachusetts General Laws - Registration of securities in name of partnership or corporate nominee - Chapter 171, Section 68
  Any credit union may cause any stock or security in registered form held for its account and not in a fiduciary capacity to be registered...
• Massachusetts General Laws - Allowance or reserve for loan losses - Chapter 171, Section 69
  A credit union shall maintain an allowance for loan losses or reserve for loan losses calculated according to generally accepted accounting principles or as otherwise...
• Massachusetts General Laws - Reserve for losses on investments - Chapter 171, Section 70
  A credit union shall maintain a reserve for loses on investments equal to five percent of the difference between the book value and the market...
• Massachusetts General Laws - Cash on hand requirements and enumerated investments - Chapter 171, Section 71
  At least five percent of the total assets of a credit union shall be carried as cash on hand or in the following investments which...
• Massachusetts General Laws - Contingent fund; liability on loan upon death of member - Chapter 171, Section 72
  The by-laws of a credit union may provide that upon the death of a member who is a borrower by means of a personal loan...
• Massachusetts General Laws - Borrowing on behalf of credit union - Chapter 171, Section 73
  The board of directors, with the approval of the commissioner, may borrow money for and in behalf of the credit union. Said board may, if...
• Massachusetts General Laws - Sale, transfer and assignment of loans, investments and other assets - Chapter 171, Section 74
  A credit union by a vote of its directors may sell, transfer and assign any and all of its loans, investments or other assets; provided,...
• Massachusetts General Laws - Investments in building, improvements and equipment; purchase of insurance covering debtors; safe deposit vaults - Chapter 171, Section 75
  Subject to the approval of the commissioner, a credit union may invest a sum not exceeding its loan reserve, investment reserve, undivided earnings and other...
• Massachusetts General Laws - Credit union as agent or broker for The Savings Bank Life Insurance Company of Massachusetts - Chapter 171, Section 75A
  A credit union may, with the approval of the commissioner, act as agent or broker for The Savings Bank Life Insurance Company of Massachusetts pursuant...
• Massachusetts General Laws - Definitions; credit union as seller of insurance products; license requirement; officers, tellers and employees; limitations; insurance to secure credit secured by mortgage; waiver of applicability of preempted provisions - Chapter 171, Section 75B
  (a) For purposes of this section, the word “company” shall mean an insurance company licensed pursuant to chapter 175 and the word “affiliate” shall mean...
• Massachusetts General Laws - National Credit Union Administration Central Liquidity Facility; membership - Chapter 171, Section 76
  A credit union may, with the approval of the commissioner, become a regular member of the National Credit Union Administration Central Liquidity Facility, established by...
• Massachusetts General Laws - Massachusetts Credit Union Share Insurance Corporation; insurance of shares and deposits - Chapter 171, Section 77
  A credit union may arrange to have its shares and deposits insured by the Massachusetts Credit Union Share Insurance Corporation. A credit union may arrange...
• Massachusetts General Laws - Consolidation - Chapter 171, Section 78
  Any two or more credit unions may consolidate into a single corporation on such terms as shall have been agreed upon by a vote of...
• Massachusetts General Laws - Merger or consolidation of credit unions and saving banks into single savings bank - Chapter 171, Section 78A
  Any one or more credit unions may merge or consolidate with one or more savings banks, as defined in section one of chapter one hundred...
• Massachusetts General Laws - Merger or consolidation of credit unions and cooperative banks into single cooperative bank - Chapter 171, Section 78B
  Any one or more credit unions may merge or consolidate with one or more cooperative banks, as defined in section one of chapter one hundred...
• Massachusetts General Laws - Merger of credit unions under possession of commissioner or Massachusetts Share Insurance Corporation - Chapter 171, Section 79
  If the commissioner has taken possession of a credit union as provided for in sections twenty-two to twenty-six, inclusive, of chapter one hundred and sixty-seven...
• Massachusetts General Laws - Foreign credit unions; consent for incorporation - Chapter 171, Section 80
  Any credit union operating under a charter other than one issued by the commonwealth and having a usual place of business therein may, if authorized...
• Massachusetts General Laws - Conversion of credit union into mutual savings bank, mutual co-operative bank, mutual federal savings bank or mutual federal savings and loans association - Chapter 171, Section 80A
  (a) A credit union subject to this section may convert into a mutual savings bank governed by chapter 168, a mutual co-operative bank governed by...
• Massachusetts General Laws - Credit union chartered in commonwealth converted to federal charter - Chapter 171, Section 80B
  (a) A credit union chartered in the commonwealth may convert, subject to this section, into a credit union chartered under applicable federal law and regulations...
• Massachusetts General Laws - Liquidation - Chapter 171, Section 81
  At any regular or special meeting, if proper notice of the purpose has been given, the members, upon recommendation of not less than two-thirds of...
• Massachusetts General Laws - Credit Union Employees Retirement Association eligibility; contributions; pensions and annuities; supplemental benefits - Chapter 171, Section 82
  Fifteen or more credit unions, each having assets of $50,000 or more, may form the Credit Union Employees Retirement Association, in this section and in...
• Massachusetts General Laws - Credit Union Employees Retirement Association; by-laws; reports - Chapter 171, Section 83
  The by-laws of the association shall be submitted to the commissioner and shall prescribe the manner in which, and the officers and agents by whom,...
• Massachusetts General Laws - Credit Union Employees Retirement Association; tax exemption; attachment - Chapter 171, Section 84
  The property of the association, the portion of the wages or salary of any employee deducted or to be deducted under sections eighty-two and eighty-three,...

Last modified: September 11, 2015