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]