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2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 7 - Use of Words ''credit Union'' Restricted; Penalties

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 Act or one incorporated as a credit union under the laws of any other state and authorized to do business in the commonwealth, shall hereafter receive payments on shares or deposits from its members and loan such payments on shares and deposits in the manner of a credit union or transact business under any name or title containing the words ''credit union''; provided, however, that an association of credit unions or an organization, corporation or association, whose membership or ownership is primarily limited to credit unions, may transact business in accordance with the purposes for which it was established under any name or title containing the words ''credit union''. Whoever violates any provision of this section shall be punished by a fine of not more than one thousand dollars, and the supreme judicial and superior courts shall have jurisdiction in equity to enforce the provisions of this section.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 8 - Location Changes; Branches and Depots; Consolidations or Mergers; Mobile Branch Banking

Section 8. The location of the main office of a credit union may be changed with the written consent of the commissioner.
After such notice and hearing as the commissioner may require and with the commissioner's written permission and under such conditions as the commissioner may approve, a credit union may establish and maintain 1 or more branch offices or depots in the county wherein the main office is located, or on a site within 100 miles from the premises of the main office in a city or town in another county including on a site in the states of Connecticut, Maine, New Hampshire, New York, Rhode Island or Vermont, if in the opinion of the commissioner, the public would benefit by the establishment of additional credit union facilities. The establishment and maintenance of branch offices or depots in any 1 of the foregoing states shall also be established and maintained in accordance with the laws of that state. Any of the usual business transacted by a credit union at its main office may be transacted at a branch office. The business at a depot shall be transacted only on such days as may be designated by the board of directors and shall be limited to the receipt of deposits and the collection of moneys due or payable to the credit union and the business shall be subject to such other conditions, if any, as may be prescribed by the commissioner. Credit unions shall not submit more than 1 out-of-state branch application for the commissioner's review in any 12–month period.
With the written consent of the commissioner a branch office or depot may be closed or its location may be changed.
The offices of any credit union consolidating or merging pursuant to section 78 may be maintained as branch offices of the credit union with the written permission of and under such conditions, if any, as may be approved by the commissioner.
Mobile branch banking may be authorized by the commissioner under conditions the commissioner may approve and subject to regulations the commissioner may establish.
An investigation fee shall be submitted with any application to establish a branch office. The investigation fee shall be determined annually by the commissioner of administration under section 3B of chapter 7. To determine the amount of the investigation fee to establish a branch office, the commissioner of administration may make such classifications and differentiations of credit unions and may provide adjustments to the fee as necessary; provided, however, that such classifications and differentiations may be based on: (i) the asset size of the credit union; (ii) the number of existing branch offices of the credit union; or (iii) other criteria as determined by the commissioner of administration; and provided further, that the investigation fee shall be consistent with and equal to the amount of the investigation fee to establish a branch office imposed on banks in section 5 of chapter 167C.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 8b - Educational Credit Union, Student Savings Deposit and School Branch Office Programs

Section 8B. A credit union, federal credit union or out-of-state federal credit union with a branch office in the commonwealth may establish educational credit union training programs, student savings deposit programs and school branch office programs. A credit union, federal credit union or out-of-state federal credit union with a branch office in the commonwealth shall conduct such a program under the terms and conditions as the commissioner may establish. A federal credit union or out-of-state federal credit union with a branch office in the commonwealth shall conduct such a program in compliance with applicable federal laws and regulations.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 8c - Application by Foreign Credit Union or Out-of-State Federal Credit Union to Establish New Branch in the Commonwealth

Section 8C. A foreign credit union or out-of-state federal credit union, if such credit union does not operate a branch in the commonwealth, may establish and maintain a new branch in the commonwealth; provided, however, that the credit union submits an application in the manner and form prescribed by the commissioner and the commissioner approves that application; provided further, that the laws of the state in which the credit union has its principal place of business expressly authorize, under conditions not more restrictive than those imposed by this chapter as determined by the commissioner, a Massachusetts credit union to establish and maintain a branch therein. Any such foreign credit union or out-of-state federal credit union shall operate under the supervision of the commissioner and in accordance with all applicable laws governing Massachusetts credit unions, including all rules and regulations promulgated thereunder.
An out-of-state federal credit union shall operate the same as a federal branch which shall be subject to all laws of the commonwealth relative to community reinvestment, consumer protection, fair lending, establishment of intra-state branches, including but not limited to, sections 1 to 14A, inclusive, of chapter 93, and the applicable sections of chapters 93A, 167, 167B, 171, 183 and 184, including all rules and regulations promulgated thereunder and to such other laws of the commonwealth as are applicable to a federal credit union with its main office in the commonwealth.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 8e - Registration of Foreign Credit Union or Out-of-State Federal Credit Union Operating a Branch in the Commonwealth

Section 8E. Each foreign credit union or out-of-state federal credit union that operates a branch in the commonwealth shall register with the commissioner on forms prescribed by the commissioner which shall include information regarding the financial condition, operations and management of the credit union and other related matters the commissioner may deem necessary or appropriate to carry out this chapter.
The commissioner, from time to time, may require reports under oath to keep informed as to whether this chapter and the rules and regulations established thereunder have been complied with.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 8f - Injunction to Restrain Foreign Credit Union or Out-of-State Federal Credit Union From Further Proceeding With Business

Section 8F. If, upon examination, it appears that a foreign credit union or out-of-state federal credit union is insolvent, or that its capital is impaired, or that its condition is such as to render the continuance of business hazardous to the public or to those having funds in its custody, the commissioner shall apply, or if any such credit union appears to have exceeded its powers or failed to comply with applicable law may apply, to the supreme judicial court, which shall have jurisdiction in equity on such application, to issue an injunction restraining the credit union, in whole or in part, from further proceeding with its business, and to make further orders or decrees as justice and equity may require. The court may appoint 1 or more receivers to take possession of its property and effects, subject to such directions as may from time to time be prescribed by the court.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 9 - By-Laws

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 and determine:
(a) The name of the corporation.
(b) The purposes for which it is formed.
(c) The condition of residence, occupation or association which qualify persons for membership.
(d) The conditions on which shares may be paid in, transferred and withdrawn.
(e) The conditions on which deposits may be received and withdrawn.
(f) The method of receipting for money paid on account of shares or deposits or repaid on loans.
(g) The number of directors and the number of years for each term.
(h) The number of members of the credit committee, if applicable, as required by the by-laws.
(i) The time of holding regular meetings of the board of directors, the credit committee, if applicable, as required by the by-laws and the auditing committee.
(j) The duties of the several officers.
(k) The entrance fees, if any, to be charged.
(l) The fines, if any, to be charged for failure to meet obligations to the corporation punctually.
(m) The date of the annual meeting.
(n) The manner in which members shall be notified of the annual meeting and special meetings.
(o) The number of members who shall constitute a quorum at all meetings.
(p) Such other policies as may be deemed to be necessary.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 10 - Amendment of By-Laws

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 the members present and entitled to vote; provided, however, that the notice of the meeting and of the proposed amendment is given each member in the manner prescribed in said by-laws. No amendment or amendments containing a change in the conditions of residence, occupation or association which qualify persons for membership shall become operative until approved in writing by the commissioner.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 11 - Annual Meetings; Special Meetings; Notice; Voting

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 twenty days after the close of the fiscal year. The fiscal year of every credit union shall end at the close of business on the last business day of December. Special meetings may be called at any time by a majority of the directors and shall be called by the clerk upon written application of ten or more members entitled to vote. Notices of all meetings of the corporation and of all meetings of the board of directors and of committees shall be given in the manner prescribed in the by-laws; provided, however, that all meetings of the shareholders and depositors shall be posted in a conspicuous place, for at least seven days prior to the meeting, within each office or branch office of said corporation.
A member shall not have more than 1 vote and, after a credit union has been incorporated for 1 year, a member shall not be entitled to vote or be a candidate for director until the member has been a member for not less than 3 months. An organization member or a person who is a party to a joint account may cast 1 vote on the share or deposit account at any of its meetings by a duly delegated agent or a party to the joint account; provided, however, that a minor shall not have the right to vote. A member may vote: (i) in person; (ii) by mail; or (iii) by electronic means; provided, however, that each credit union shall set forth in its by-laws the method of voting to be used by its members; provided further, that the commissioner may impose conditions or limitations on such voting methods.
The members shall elect directors, vote on any proposed amendment to the by-laws and act on such matters as required under law at each annual meeting.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 12 - Directors; Terms; Inability to Pay Judgment; Classes

Section 12. The business and affairs of a credit union shall be managed by a board of not less than 7 directors. A credit union may limit the number of employees serving as directors in its by-laws. The directors shall be elected at the annual meetings. All members of said board shall be sworn to the faithful performance of their duties and shall hold their several offices unless sooner removed as hereinafter provided, until their successors are qualified. A record of every such qualification shall be filed and preserved with the records of the corporation. Directors shall be elected for not less than one nor more than three years, as the by-laws shall provide.
The office of any director who seeks, or against whom, an order of relief is entered, in a personal capacity, pursuant to Title 11 of the United States Code, or who, on examination in a supplementary process proceeding, has been found unable to pay a judgment, shall thereby be vacated. A record of any such vacancy shall be entered upon the books of the corporation. Any director whose office is so vacated shall again be eligible to serve as a director upon the receipt of a discharge in bankruptcy under Chapter 7, the completion of all payments required pursuant to a plan of reorganization under chapter 11, the completion of all payments under a plan of debt adjustment under chapter 13, or the payment of the judgment.
If the term is more than one year, they shall be divided into classes, and an equal number, as nearly as may be, elected each year. If a director ceases to be a member of the credit union, his office shall thereupon become vacant. The by-laws may authorize the continuance, as honorary directors, of those persons who shall have served as directors for ten years or more. No such honorary director shall be deemed to be an officer or member of the board of directors of such corporation, nor shall he receive compensation or be required to attend meetings or be authorized to perform any duties.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 14 - Expulsion of Members

Section 14. The board of directors may expel from a credit union a member who: (i) has not carried out the member's engagements with the credit union; (ii) has been convicted of a criminal offense; (iii) neglects or refuses to comply with this chapter or the by-laws of the credit union; (iv) habitually neglects to pay the member's debts; or (v) has deceived the corporation or any committee thereof with regard to the use of borrowed money; provided, however, that a member shall not be expelled until the member has been provided with reasonable notice in writing of the charges against the member and with an opportunity to be heard; provided further, that a director who becomes insolvent or bankrupt shall be withdrawn from the board of directors automatically, with no requirement for notice or an opportunity to be heard; and provided further, that the board of directors may suspend from the credit union any member who has been convicted of a criminal offense.
The amounts paid in on shares or deposited by members who have withdrawn or have been expelled shall be paid to them, in the order of withdrawal or expulsion, but only as funds therefor become available and after deducting any amounts due from such members to the credit union. Such expulsion shall not operate to relieve a member from any outstanding liability to the credit union.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 15 - Officers and Committee Members; Election and Appointment; Loan Officers

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 after the annual meeting, shall elect from their own number a chairman of the board and a clerk and shall elect persons who may or may not be directors to hold the offices of president and treasurer and may elect vice-presidents and assistant treasurers, all of whom shall be officers of the corporation and shall elect such other officers as may be necessary for the transaction of the business of the credit union. The offices of president and treasurer shall not be held by the same person. The offices of president and chairman of the board may be held by the same person and the offices of clerk and treasurer may be held by the same person.
At such meeting, the directors shall elect an auditing committee from among the directors, an investment committee comprised of at least 1 member of the board of directors and a credit committee, if applicable, comprised of at least 1 member of the board of directors. Each such committee shall be comprised of not less than 3 members and not more than 5 members; provided, however, that no member of the board of directors shall be a member of both the credit committee, if any, and the auditing committee.
Officers shall be sworn to the faithful performance of their duties and shall hold their several offices unless sooner removed, as provided in section thirteen, until their successors are qualified.
The board of directors may appoint an executive committee or a membership officer from among the board or other employees, other than the treasurer, an assistant treasurer or a loan officer, and authorize the committee or officer to approve applications for membership under such conditions as the board of directors may prescribe.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 16 - Auditing Committee; Powers and Duties

Section 16. The auditing committee shall keep fully informed at all times as to the financial condition of the credit union. The auditing committee shall: (i) hold meetings not less than once each month; (ii) keep records of the meetings; (iii) certify the monthly statements submitted by the treasurer; (iv) make a thorough annual audit of the books, including income and expenses; (v) report to the board of directors its findings, together with any recommendations; and (vi) make an annual report at the annual meeting.
The auditing committee shall, under regulations prescribed by the commissioner and within a period of time not exceeding three years, cause an examination and audit to be made of the books, securities, cash, assets, liabilities, income and expenditures of the credit union including a trial balance of the deposit and share account. Such examination and audit shall be made in such form and such manner as the commissioner may prescribe and such examination and audit of a credit union having assets over five million dollars shall be made by a certified public accountant or public accountant not connected with the credit union.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 17 - Credit Committee; Powers and Duties

Section 17. The credit committee, if any, shall hold meetings not less than once in each month, act on all applications for loans and approve, in writing, all personal loans granted and the security, if any, pledged therefor, except as provided in this section. The credit committee shall submit to the board of directors all applications for loans to be secured by mortgages of real estate with its recommendations thereon. The credit committee may reasonably delegate its duties to employees in accordance with written loan policies that establish appropriate limits and standards and that are consistent with safe and sound banking practices.
No personal loans shall be made unless all of the members of the credit committee who are present when the application is considered, which number shall constitute at least two-thirds of the members of said committee, approve such loan. No loan shall be granted unless the members of said committee are satisfied that the loan promises to be of benefit to the borrower.
Notwithstanding the foregoing, the credit committee may appoint 1 or more employees of the credit union, who need not be members of the board of directors or the credit committee, as loan officers and delegate to them the authority to approve applications for loans authorized by this chapter. The delegation of authority shall be in writing, shall be approved by the board of directors, shall define the term and scope of the authority, and shall include standards for approving loans to be secured by mortgages of real estate which are consistent with the written loan policies of the credit union. Not more than 1 member of the credit committee may be appointed as a loan officer. Applications for loans to be secured by a mortgage on real estate not approved by a loan officer shall be acted upon by the credit committee. Applications for loans to be secured by a mortgage on real estate approved by a loan officer or the credit committee shall require ratification by the board of directors.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 18 - Investment Committee; Powers and Duties

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 submitted to the board of directors at its regular meeting next following the date upon which any such investment was made in such form as the directors may require and such report and any action taken by the board thereon, shall be made part of the records of such meeting.
The investment committee shall hold meetings not less than once in each month. The investment committee may reasonably delegate its duties to employees in accordance with written investment policies that establish appropriate limits and standards and that are consistent with safe and sound banking practices.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 19 - Directors and Officers; Limitations on Services With Other Financial Institutions

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 the credit committee, member of the auditing committee or bookkeeper or an employee having access to securities or cash in a credit union shall hold any of said offices or be employed in a capacity in which he has access to securities or cash in another credit union at the same time.
After January first, nineteen hundred and seventy-five, a director or other officer of a credit union may at the same time be a trustee, director or other officer of a savings bank, cooperative bank, federally chartered savings and loan association, trust company, a bank holding company or any affiliate, a mortgage company owned by a bank or national banking association if, in such case, there is in force a permit therefor issued by the commissioner, in writing, with the reasons thereon stating why the public interest warrants its issuance, after reasonable notice and an opportunity to be heard, who is hereby authorized to issue such permit if, in his judgment, it is not incompatible with the public interest, and to revoke any such permit whenever he finds, after reasonable notice and opportunity to be heard, that the public interest warrants its revocation; provided, however that the provisions of this section shall not apply to any director or other officer who held such position at the time of incorporation of said credit union.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 20 - Compensation and Expense Reimbursement; Restrictions on Loans to Directors

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 committee. A director may be reimbursed for actual expenses incurred in the performance of responsibilities of director or as a member of any committee; provided, however, that such expenses must be itemized in writing and approved by the board of directors. Such expenses shall be reported to the members at the next annual meeting or at a special meeting called for that purpose. The officers elected by the board shall receive such compensation as it may authorize. No member of said board shall borrow from the corporation, by means of a personal loan upon his note, to an amount in excess of the total of his shares and deposits in said credit union, and the accumulated earnings standing to his credit thereon on the books of the corporation or with sufficient collateral pledged to secure the same made up of negotiable bonds or notes of the United States valued at not more than eighty percent of their market value or by the assignment of his passbook in a savings bank, cooperative bank or a federal savings and loan association, all doing business in the commonwealth or policies issued by life insurance companies authorized to transact business in this commonwealth valued at not more than their cash surrender value, unless approved by vote of two-thirds of the other members of said board.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 21 - Bond Requirements

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 credit union at its expense in such amounts and with such surety or sureties and conditions as the commissioner may prescribe. The directors may require bonds of such other officers, employees or agents as they deem advisable. The persons required to give bond may be included in one or more blanket or schedule bonds; provided, however, that bonds upon which changes are made are approved by the commissioner as to the amounts and the conditions thereof and as to the sureties thereon. Each credit union shall file with the commissioner on a form prescribed by him a certificate from the insurer indicating compliance with all requirements prescribed by the commissioner. The commissioner may prescribe the manner of custody and safekeeping of such bonds by the credit union.
Subject to the approval of the commissioner of insurance as to the form and conditions thereof, a schedule bond may be issued to an association of credit unions covering the officers and employees of the credit unions which are members of such association, notwithstanding that chapter one hundred and seventy-five does not expressly authorize the issuance of such a schedule bond.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 22 - Treasurer's Additional Duties Under Chapter 167 and This Chapter

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 and functions usually preformed by the treasurer, he shall also be responsible for the performance of all acts and duties required of such corporation by the provisions of chapter one hundred and sixty-seven or one hundred and seventy-one except in so far as such performance has been expressly imposed on some other officer or employee of such credit union by its regulations or by-laws or by provision of law.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 23 - Nonfeasance, Misfeasance and Malfeasance; Penalties

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 by any provision of chapter one hundred and sixty-seven or one hundred and seventy-one, or who knowingly and wilfully aids or abets the doing of any act so forbidden to such credit union or to any other officer, director, agent or employee thereof, or who knowingly and wilfully fails to do any act required of him by any such provision, or who knowingly and wilfully fails to do any act which is required of such credit union by any such provision the performance of which is imposed on him by the by-laws or regulations of the credit union or by provision of law or the responsibility for the non-performance of which is placed upon him by section twenty-two shall, if no other penalty against him in his aforesaid capacity is specifically provided, be punished by a fine of not more than one thousand dollars or by imprisonment for not more than one year, or both.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 24 - Indemnification of Directors, Officers and Employees; Liability Insurance

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 law. Such indemnification may include payment by the credit union of expenses incurred in defending a civil or criminal action or proceeding in advance of the final disposition of such action or proceeding upon receipt of an undertaking by the person indemnified to repay such payment if he shall be adjudicated to be not entitled to indemnification under this section. Any such indemnification may be provided although the person to be indemnified is no longer an officer, director, employee or agent of the credit union.
No indemnification shall be provided for any person with respect to any matter as to which he shall have been adjudicated in any proceeding not to have acted in good faith in the reasonable belief that his action was in the best interests of the credit union.
A credit union shall have power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee or other agent of the credit union against any liability incurred by him in any such capacity or arising out of his status as such, whether or not the credit union would have the power to indemnify him against such liability.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 25 - Insurance Benefits for Employees, Officers and Directors

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 any combination thereof, for its employees, officers, and directors. Directors ineligible for the group benefit may be reimbursed up to the net dollar amount of the individual participant cost of the group benefit. The commissioner may establish regulations necessary to provide reasonable restrictions in connection therewith. The commissioner may also make adjustments and exceptions as in his judgment are necessary to carry out or facilitate compliance with this section.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 26 - Annual Reports

Section 26. Annually, not more than 30 days after the last business day of December, a credit union shall make a report to the commissioner in such form as the commissioner may prescribe accurately showing its condition at the close of business on that day and containing such other information as the commissioner may require. The annual report shall be in accordance with generally accepted accounting principles and shall fairly present the credit union's condition as of the last business day of the credit union's fiscal year. A statement of condition of a credit union shall be available for examination for reasonable purposes by members at the principal office of a credit union during business hours or made available to a member upon reasonable request.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 28 - Preservation of Records

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 of at least six years from the date of making the same or from the date of the last entry thereof. Such records shall be preserved in their original form for two years and thereafter may be preserved on microfilm or microfiche. All original records, age three years or older, may be stored in off property locations; provided, however, that withdrawal slips may be destroyed after a period of two years, if such withdrawal slips are properly microphotographed and the microphotographs shall be preserved for the period provided in this section.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 29 - Shares and Deposits; Dividends

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 of not less than five dollars but not more than twenty-five dollars each and shall be subscribed and paid for in such manner as the by-laws of the credit union shall prescribe.
Dividends may be declared by the board of directors at least once every year for such periods as shall be determined by the board of directors and paid from the earnings which actually have been collected during the dividend period next preceding and which remain after the deduction of all expenses, interest on deposits and shares and the amounts required to be set apart to the loan reserve and investment reserve or such dividend may be declared in whole or in part from the undivided earnings of preceding years remaining after the aforesaid deductions for such years; provided, however, that if the by-laws of the credit union so provide, a share purchased or deposit made on or before the tenth day after the day on which shares or deposits begin to draw dividends or interest, as provided in the by-laws or regulations, or, if such tenth day be a Saturday, Sunday or legal holiday, on or before the next business day succeeding such tenth day and remaining in the credit union as shares or deposits through the balance of the monthly period, shall be construed as having been on deposit as shares or deposits one full month within the meaning of this section.
Such dividends may be paid on fully paid shares outstanding at the close of the dividend period, but shares which become fully paid during such dividend period shall be entitled only to a proportionate part of such dividend calculated from the first day of the month following such payment in full. Dividends due to a member shall, at his election, be paid to him in cash or credited to his account in either shares or deposits; provided, however, that dividends may not be declared or paid on less than one full share.
Dividends may be paid at various rates based on the type and amount of an account or on the terms and conditions applicable to said accounts.
The board of directors shall determine the rate of interest to be paid on deposits.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 30 - Limitations on Shares and Deposits

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 he may jointly, with one or more persons, hold shares or make deposits, or both. An organizational member may purchase shares or make deposits; provided, however, that the total of the payments by all organizational members shall not exceed, at any time, 25 per cent of the assets of the credit union.
This section shall apply to members of credit unions which are insured by the National Credit Union Administration and to members of low-income credit unions; provided, however, that no such credit union shall accept deposits or payments for shares for the account of a shareholder or depositor in excess of the amount which is insured by the National Credit Union Administration unless the excess is insured by the Massachusetts Credit Union Share Insurance Corporation pursuant to section 6D of chapter 294 of the acts of 1961.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 31 - Negotiable Withdrawal Order Accounts

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 accounts shall be designated as negotiable withdrawal order accounts. Said accounts shall be subject to regulations of the commissioner.
A credit union which accepts deposits or shares for accounts subject to withdrawal by negotiable or transferable instrument for the purpose of making transfers to third parties shall, if requested by the depositor or shareholder, provide without charge not less than 25 cancelled instruments or legible copies of the fronts and backs thereof per calendar year; but, if requested by a depositor who is blind the credit union shall make additional accommodations to provide additional cancelled instruments or information thereon as is possible in accordance with the Check Clearing for the 21st Century Act, 12 USC 5001 et seq., and regulations promulgated thereunder. Section 4–406 of chapter 106 shall be subject to this section.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 32 - Term Share or Deposit Accounts; Written Plan

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 deposit, subject to this section.
Notwithstanding any prior provisions of the law to the contrary, any such shares or deposits shall be received by a credit union subject to the terms of a written plan, which plan shall specify (a) the proposed rates of dividends or interest to be paid on such term shares or deposits, including day-to-day dividends or interest if the plan so provides, (b) the minimum amount, if any, and the maximum amount of share or deposit balances and the minimum period, which shall not be less than three months, of maintenance of such balances to which such specified rates shall apply, (c) the additional reserves to be established for such rates of dividends, (d) the form and substance of the certificate or passbook which shall represent the shares or deposits to which such dividends or interest may apply, (e) such other provisions as are termed necessary or advisable to give effect to the purposes of such plan and (f), that any credit union shall mail to the depositor a written notification of maturity at least thirty days prior to the date of maturity of said shares or deposit but in no event more than forty-five days prior to said date of maturity of said shares or deposit.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 32b - Demand Deposit Account and Savings Account; Joint Accounts; Terms; Fees; Notice of Availability

Section 32B. A natural person not more than 18 years of age or not less than 65 years of age may choose 1 demand deposit account and 1 savings account upon which no service, maintenance or other similar charge shall be imposed; provided, however, that any such demand deposit account and any such savings account shall each include a joint account in which the spouse of the eligible depositor, if applicable and regardless of age, is the joint tenant therein or the joint tenant would otherwise be an eligible depositor and that has been established and used for personal, family or household purposes. Such account shall not be subject to: (i) a minimum balance requirement; (ii) a charge for a deposit or withdrawal; or (iii) a fee for the initial order or subsequent refills of the basic line of checks offered by the credit union, which shall include the name of the depositor. A savings account in trust for another person shall be covered by the notice, services, fee and charge provisions of this section only if the trustee is a person not more than 18 years of age or not less than 65 years of age. To obtain a demand deposit account and a savings account under this section, a consumer shall notify a credit union of the consumer's eligibility for such accounts and provide proof of age in a form acceptable to the credit union. A credit union may assess a fee against an account under this section for certain services in accordance with the credit union's published service charge schedule, which shall include stop payment orders, wire transfers, certified or bank checks, money orders, deposit items returned, transactions at electronic branches and through other electronic devices and a reasonable charge, as determined by the commissioner, against any such account when payment on a check or other transaction on the account has been refused because of insufficient funds or paid despite insufficient funds. A credit union shall post in each of its credit union offices a notice informing consumers of the availability of the credit union services under this section and shall disclose annually to all depositors, in a manner of its choosing, the provisions of this section. For the purposes of this section, the term ''check or other transaction'' shall include, but not be limited to: (i) a check, as defined in 12 U.S.C. 5002; (ii) an electronic fund transfer, as defined in section 1 of chapter 167B; or (iii) a transaction processed by an automated clearinghouse.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 35 - Trustee or Custodian; Profit-Sharing or Retirement Plans

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 401(a) of the Internal Revenue Code of 1954 including the provisions of P.L. 94–455. A credit union may act as trustee or custodian under a retirement plan or individual retirement account which, in the judgment of such credit union at the time of appointment as such trustee or custodian is accepted, is established pursuant to the provisions of Public Law 87–792, entitled ''Self–Employed Individuals' Tax Retirement Act of 1962'' or pursuant to the provisions of section 2002 of P.L. 93–406 of the Employees Retirement Income Security Act of 1974, if the provisions of such plan have been approved by the commissioner and if such provisions permit any of the funds of the trust or the custodial accounts to be invested in shares or deposits of the credit union. Such shares or deposits may be in addition to the shares or deposits permitted by section thirty. No funds held by such credit union as such trustee or custodian shall be invested otherwise than in shares or deposits in the credit union or properly qualified life insurance retirement income policies or other investments legal for credit unions or any combination thereof, as each such plan may prescribe or permit. Every advertisement, announcement or solicitation for such a plan or account shall state, in a clear and conspicuous manner, the amounts of any contributions and earnings thereon subject to state and federal taxable income.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 36 - Designation of Beneficiary; Deferred Compensation or Retirement Plans

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 retirement plan, trust or custodial account described in one or more of the following sections of the Internal Revenue Code of the United States, and in effect from time to time, shall be effective according to its terms, notwithstanding any purported testamentary disposition allowed by statute, by operation of law or otherwise to the contrary; section four hundred and one (a), section four hundred and one (f), section four hundred and three (b)(7), section four hundred and five (a), section four hundred and eight (a), and section four hundred and eight (h). Nothing in this section is intended to limit, by implication or otherwise, any nonstatutory right of an employee to designate one or more beneficiaries in the employees' interest under any retirement plan not described in this section or under any other employee benefit plan.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 37 - Plans Providing Loans Guaranteed by Higher Education Assistance Corporation

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, public utility, partnership, corporation, college, university, insurance company, charity, any city, town, county or district of the commonwealth or by any instrumentality thereof or individual for the sole purpose of making loans guaranteed in whole or in part by the Massachusetts Higher Education Assistance Corporation; provided, however, that no such plan shall discriminate against any applicant otherwise eligible for such a loan; and, provided further, that such deposits shall not exceed twenty percent of the assets of the credit union.
2023 Massachusetts General Laws › Part I - Administration of the Government › Title XXII - Corporations › Chapter 171 - Credit Unions › Section 38 - Accounts for Holding Residential Lease Security Deposits

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 pursuant to paragraph (a) of subsection (3) of section fifteen B of chapter one hundred and eighty-six. Such account may be established as required by said section fifteen B for the purpose of holding security deposits taken by a lessor of residential dwelling units owned or managed by said lessor, but the terms of said account shall be such as to place said deposit beyond the claim of a creditor of the lessor, including a foreclosing mortgagee or trustee in bankruptcy, and as will provide for the transfer of said deposit to a subsequent owner of any property for which such security deposit was taken. Interest or dividends accruing on said deposit shall be paid to the lessor pursuant to the terms of the deposit. Withdrawals and payments made by the corporation from said account shall discharge the liability of said corporation to all persons.