WESTBOROUGH, Mass.-Since 1961, the Massachusetts Credit Union Share Insurance Corporation (MSIC) has provided excess insurance to all its state chartered credit unions. Federal credit unions may also opt for excess coverage from MSIC. Massachusetts state law requires excess deposit insurance coverage for Massachusetts customers of cooperative and savings banks and state-chartered credit unions. MSIC was created by the state’s legislature in 1961 and is operated by a 15-member board of directors elected from and by its members, who effectively own the fund. MSIC currently serves 82 state-chartered and 19 federally-chartered credit unions with membership in excess of 1.3 million and assets of $10.9 billion. Coverage levels vary depending upon asset size. As of fiscal year end 2002 (September 30, 2002), MSIC’s fund was in excess of $53 million. Net income for the year came to $2.7 million. The fund is invested in marketable securities managed by Voyageur Asset Management Inc. and audited by Wolf & Co. From 1999-2001, premiums were returned to member credit unions as surplus assessments. However, the surplus assessments were retained in 2002. According to MSIC, state and federal deposit insurance corporations generally maintain an equity ratio $1.25 per $100 of insured savings. MSIC netted $8.53 per $100 insured savings, which is the highest of all excess deposit insurers MSIC said. According to an MSIC statement, the fund played a crucial role in the banking crisis of the late 1980s early 1990s. “It provided several Massachusetts-based credit unions with the required capital to obtain federal insurance, allowing them to continue to operate independently rather than being merged or liquidated. Six million dollars was invested in member credit unions with no legal requirements to repay. Nearly $500,000 has been repaid,” an informational statement read. In addition, MSIC provided staff during crisis and “paid members/depositors of Massachusetts Credit Unions $49,000,000 and no one in the Commonwealth lost, or was denied access to their savings.” Aside from excess insurance, MSIC provides objective analysis and consultation, practical guides and reports to assist credit union management, and marketing materials to explain the benefits of excess coverage to members. [email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2023 ALM Global, LLC. All Rights Reserved.