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. Section 401 of chapter 110A of the General Laws, as appearing in the 1990 Official Edition, is hereby amended by striking out, in line 18, the words "or trust company, or" and inserting in place thereof the following words:- trust company, or the Central Credit Union Fund, Inc., established by chapter two hundred and sixteen of the acts of nineteen hundred and thirty-two, or.

SECTION 2. Chapter 216 of the acts of 1932 is hereby amended by striking out sections 3 and 4 and inserting in place thereof the following two sections:-

Section 3. A credit union doing business in the commonwealth, a federally insured credit union, the Massachusetts Credit Union Share Insurance Corporation, other credit union organizations as from time to time may be provided for in the by-laws of the corporation, and a state or federally regulated entity which serves as an investment vehicle or provides liquidity for a state chartered or federally chartered credit union, may become a member of the corporation by subscribing for, purchasing and holding not less than five shares in the corporation; provided, however, that no member which is organized under chapter one hundred and seventy-one of the General Laws shall invest in said shares more than twenty-five percent of its total assets, exclusive of interest accumulated thereon. A member may withdraw from the corporation in such manner as the by-laws of the corporation shall prescribe.

Section 4. The corporation may invest its funds in loans to members in such manner as its by-laws may prescribe, may borrow money for such purpose, may secure such borrowing by pledging or granting a security interest in any of its assets, and may offer investment services to its members. It may also invest its funds in the funds and securities contained on the list of legal investments prepared pursuant to section fifteen A of chapter one hundred and sixty-seven of the General Laws and in deposits in trust companies, credit unions or savings banks incorporated under the laws of the commonwealth or in national banks located within the commonwealth and may participate in federal funds transactions. It may also invest in common trust unit plans described in section sixty-seven of chapter one hundred and seventy-one of the General Laws and in state or federally regulated entities which serve as investment vehicles or provide liquidity for state chartered or federally chartered credit unions. If its shares and deposits are insured by the National Credit Union Administration Share Insurance Fund, it shall also have the following investment powers: (a) to discount, buy, invest in, hold, assign, transfer, sell and negotiate promissory notes, drafts, bills of exchange, mortgages, trade acceptances, banker's acceptances, bonds, debentures, bonds or notes secured by mortgages, installment obligations, accounts receivable, balances due on conditional sales and other evidences of debt for its own account or for the account of customers; (b) to invest in the bonds or other evidences of indebtedness of governments or political subdivisions thereof, both foreign and domestic; (c) to act as financial or other agent for a person, association, trust, corporation, municipal corporation or government, and in their behalf to negotiate loans and the sale, purchase or other disposition or acquisition of securities or other property; and (d) to exercise the powers authorized under the provisions of section five and section eight of chapter one hundred and sixty-seven F of the General Laws.