MA S837

Mutual banks and credit unions may merge into a single credit union with approval by 2/3 vote of each institution's board and written commissioner approval

Mutual banks may convert into state-chartered credit unions, with depositors becoming members within 2 years and non-permissible assets disposed of within 2 years

Credit unions gain expanded investment authority including asset-backed securities (up to 10% of assets), shares in banking-related service organizations (up to 10%), and participation in the Massachusetts Capital Growth Corporation (up to 10%)

Credit unions may convert to mutual savings banks or co-operative banks, and vice versa, requiring a 2/3 board vote, commissioner approval, satisfactory CRA rating, 90-day notice to insurers, and majority member vote by secret ballot conducted by an independent entity

Willful violation of disclosure requirements during conversion carries penalties of up to $5,000 fine, up to 3 years imprisonment, or both