Massachusetts Governor Charlie Baker signed S.2828, An Act Modernizing Credit Union Laws, into law January 12, making it possible for 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 most important and comprehensive enhancement to the Massachusetts credit union state charter in over 30 years.
Throughout the legislative process the importance of credit unions to the Commonwealth in providing vital services to their communities was emphasized. 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.
“The credit unions of Massachusetts appreciate their lawmakers’ recognizing the importance of credit unions to their communities. 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," said Cooperative Credit Union Association President/CEO Ron McLean. "It is especially helpful in strengthening Massachusetts credit unions ability to further assist their members through the pandemic and beyond.”
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. The new law strengthens credit unions’ ability to enhance the financial stability of their members through streamlined personal loan authority, eliminating the 100-mile radius for real estate loans and increasing partner options for participation loans. It also 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.