Session Laws

Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority of the same, as follows:

SECTION 1. Paragraph 4 of subsection (a) of subdivision (B) of section 24 of chapter 171 of the General Laws, as most recently amended by chapter 43 of the acts of 1979, is hereby further amended by striking out, in line 2, the word "two" and inserting in place thereof the word:- four,- and by striking out, in line 6, the word "sixty" and inserting in place thereof the word:- seventy-five.

SECTION 2. Paragraph 4A of said subsection (a) of said subdivision (B) of said section 24 of said chapter 171, inserted by section 3 of chapter 267 of the acts of 1981, is hereby amended by striking out, in line 3, the word "two" and inserting in place thereof the word:- four.

SECTION 3. The first sentence of paragraph 6 of said subsection (a) of said subdivision (B) of said section 24 of said chapter 171, as appearing in section 6 of chapter 420 of the acts of 1971, is hereby amended by striking out, in line 2, the word "two" and inserting in place thereof the word:- four.

SECTION 4. The third sentence of said paragraph 6 of said subsection (a) of said subdivision (B) of said section 24 of said chapter 171, as most recently amended by section 6 of chapter 178 of the acts of 1981, is hereby further amended by striking out, in line 6, the word "five" and inserting in place thereof the word:- ten.

SECTION 5. Said subsection (a) of said subdivision (B) of said section 24 of said chapter 171 is hereby further amended by striking out paragraph 7, as most recently amended by chapter 409 of the acts of 1981, and inserting in place thereof the following paragraph:-

7. A credit union may make or acquire a loan secured by a second mortgage on residential real estate for noncommercial or nonbusiness purposes to an amount which, when added to the balance due on the first mortgage does not exceed eighty per cent of the value of the real estate as determined by the credit committee or twenty thousand dollars, whichever is lesser. Such loans shall be repaid within a period of not more than fifteen years from the date of the note. The aggregate amount of loans made by such credit union pursuant to this paragraph shall not exceed ten per cent of its assets. A credit union having assets of four million dollars or more may make or acquire a loan secured by a second mortgage on residential real estate for noncommercial or nonbusiness purposes to an amount which, when added to the balance due on the first mortgage does not exceed eighty per cent of the value of the real estate as determined by the credit committee or twenty-five thousand dollars, whichever is lesser. Such loan shall be repaid within a period of twenty-five years from the date of the note. The aggregate amount of loans made by such credit union pursuant to this paragraph shall not exceed ten per cent of its assets.

SECTION 6. Subsection (b) of said subdivision (B) of said section 24 of said chapter 171 is hereby amended by striking out paragraph 8, as most recently amended by chapter 443 of the acts of 1981, and inserting in place thereof the following paragraph:-

8. Except as may be otherwise specified in subsection (a), a credit union having assets of not more than four million dollars, may loan, upon any one parcel of real estate, an amount not exceeding seventy-five thousand dollars and the total liabilities of any one member as borrower upon loans so secured shall not exceed one hundred and twenty thousand dollars. Except as may be otherwise specified in subsection (a), a credit union having assets of four million dollars or more, may loan, upon any one parcel of real estate, an amount not exceeding one hundred and ten thousand dollars and the total liability of any one member as borrower upon loans so secured shall not exceed one hundred and forty-five thousand dollars.

SECTION 7. The provisions of this act shall apply to loans made on or after the effective date of this act.