MARLBOROUGH, Mass., January 21, 2021 / PRNewswire / – Governor of Massachusetts Charlie baker signed S2828, An Act to Modernize the Laws on Credit Unions, in the law on January 12e, 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 enhancement to the state’s charter of MA credit unions in over 30 years.
Throughout the legislative process, the importance of Commonwealth credit unions in providing essential 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 through a more logical and organized system that will better serve residents of Massachusetts.
Most of the bill’s provisions modernize the existing powers of credit unions and address areas such as governance, the powers 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 loan authorization, 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 voting of members, authorizes associate director positions, and streamlines committee composition.
President and CEO of the Association of Credit Unions Ron McLean applauded the passage of the bill, declaring “Credit unions of Massachusetts appreciate that their legislators recognize the importance of credit unions to their communities. This bill improves credit unions on many fronts and allows them to help even more Massachusetts families gain the financial stability they need to make their dreams come true. It is particularly useful for strengthening Massachusetts ability of credit unions to further support their members during the pandemic and beyond. “
About the Association of Credit Unions
The Cooperative Credit Union Association is a regional business organization that serves as a voice for nearly 180 member credit unions primarily located in the states of Delaware, Massachusetts, New Hampshire, and Rhode Island. CCUA member credit unions have combined assets in excess of $ 59 billion and serve a collective membership base of over 4.5 million consumers. Together, CCUA credit unions offer more than $ 413 million in direct financial benefits to their members each year. Last year, credit unions contributed more than $ 21 million to support nearly 6,700 organizations in their communities. For more information visit www.CCUA.org.
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SOURCE Cooperative Credit Association (CCUA)