Mass Governor Signs Credit Union Modernization Bill | 2021-01-20
Massachusetts Governor Charlie Baker signed S.2828, An Act Modernizing Credit Union Laws, into law on January 12, allowing Massachusetts credit unions to help further improve the lives of their members. The bill has long been a priority for Massachusetts credit unions and is the largest and most comprehensive improvement to the Massachusetts state credit union charter in more than 30 years.
Throughout the legislative process, the importance of Commonwealth credit unions in providing vital services to their communities was emphasized. The new law will allow credit unions to adapt to a financial landscape that has changed dramatically over the past three decades with a more logical and organized system that will better serve Massachusetts residents.
“Massachusetts credit unions appreciate that their legislators recognize the importance of credit unions to their communities. This legislation improves credit unions on many fronts and enables them to help even more Massachusetts families gain the financial stability they need to achieve their dreams, ”said Ron McLean, President and CEO of the Cooperative Credit Union Association. . the ability of credit unions to further support their members during the pandemic and beyond.
The majority of the provisions of the bill modernize the existing authorities of credit unions and deal with areas such as governance, the power of credit union members, transactions, deposits and loans, and technological improvements. The new law strengthens the ability of credit unions to improve the financial stability of their members through streamlined personal lending authority, eliminating the 100 mile radius for home loans and increasing partner options for equity loans. It also modernizes a number of governance requirements for credit unions, including their annual meeting processes, electronic membership voting,
authorizes associate administrator positions and streamlines the composition of committees.