BOSTON– Massachusetts Gov. Charlie Baker signed a new law the Cooperative Credit Union Association is describing as the “most important and comprehensive enhancement to the Massachusetts credit union state charter in over 30 years.”
The bill,S2828, An Act Modernizing Credit Union Laws, has long been a priority for Massachusetts credit unions and “will make it possible for the Bay State’s CUs to further improve the lives of their members,” according to the CCUA.
“Throughout the legislative process the importance of credit unions to the Commonwealth in providing vital services to their communities was emphasized,” the CCUA said. “The new law will allow credit unions to adapt to a financial landscape that has shifted dramatically over the last three decades through a more logical and organized system that will better serve the residents of Massachusetts.”
According to the CCUA, the majority of provisions within the bill modernize existing credit union authorities, and address such areas as governance, credit union member authority, transactions, deposits and loans, and technology enhancements.
What Law Does
The CCUA said the new law:
- Strengthens credit unions’ ability to enhance the financial stability of their members through streamlined personal loan authority
- Eliminates the 100-mile radius for real estate loans
- Increases partner options for participation loans
- Modernizes a number of governance requirements for credit unions, including their annual meeting processes, electronic member voting, authorizes associate director positions, and streamlines committee composition
Enhancements on ‘Many Fronts’
“The credit unions of Massachusetts appreciate their lawmakers’ recognizing the importance of credit unions to their communities,” said Cooperative Credit Union Association President/CEO Ron McLean. “This legislation enhances credit unions on many fronts and makes it possible for them to help even more Massachusetts families gain the financial stability needed to achieve their dreams. It is especially helpful in strengthening Massachusetts credit unions ability to further assist their members through the pandemic and beyond.”