Bank / Credit Union

MA Gov. Baker Signs Credit Union Modernization Bill

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January 21, 2021

Massachusetts Governor Charlie Baker signed bill S2828, An Act Modernizing Credit Union Laws, into law last week. The bill has been a priority for Massachusetts credit unions for some time, according to a press release. The new law will allow credit unions to adapt to a financial landscape that has shifted dramatically over the last three decades and create a more logical and organized system that will better serve the residents of Massachusetts.

The majority of provisions within the bill include modernizing existing credit union authorities by addressing the following areas: credit union member authority; transactions; deposits and loans and technological enhancements. The new law also 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. A number of governance requirements for credit unions are also noted in the law, including annual meeting processes; electronic member voting; associate director positions and streamlining committee composition.

Cooperative Credit Union Association President, CEO Ron McLean applauded the bill's passage. "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."