Massachusetts Expands Share Insurance Investments
The Massachusetts Credit Union Share Insurance Corp. will have greater investment authority thanks to a new legislation signed by Gov. Deval Patrick last week.
According to the bill, entitled An Act Relative to the Massachusetts Credit Union Share Insurance Corp., ownership of real estate and the creation of subsidiaries are now permitted, according to the Massachusetts Credit Union League.
Investments in CUSOs are also allowed.
In addition, the new law expanded investment authority to include the investments, under the prudent main authority upon application to the commissioner of banks, not to exceed 20% of assets.
Separately, the Massachusetts league said another bill it supported has also made headway. House Bill 3954 aims to streamline the petition process for the commissioner of banks to add permissible investments for state-chartered credit unions.
How far the bill travels depends on Massachusetts General Court, which operates on a two-year legislative calendar, the league said.
Under the joint rules of the legislature, the formal legislative session must end on July 31 of the second year. Formal sessions of the state’s House of Representatives and Senate concluded this month for the 2013-2014 legislative session.
The league said both chambers are continuing to meet twice a week in informal sessions to consider local and noncontroversial matters until the end of the calendar year.