(From The Credit Union Journal)
The 100 state-chartered credit unions in Massachusetts got vastly expanded powers on lending, investments, and nonmember deposits under parity rules that went into effect last week.
The new rules, several years in the making, increase the maximum limits for all kinds of loans and permit state-chartered credit unions to offer a variety of indirect loans for boats, campers, trailers, recreational vehicles, and mobile homes.
The rules also let state-chartered credit unions invest in a variety of securities offered by other federally insured financial institutions, including repurchase agreements, reverse repurchase agreements, securities lending, and overnight federal funds.
All state-chartered credit unions can accept from any federally insured financial institution nonmember deposits worth up to 5% of existing deposits (and more after a year, if the Commissioner of Banking approves such a move); offer members tax-deductible health savings accounts; and offer corporate members interest-bearing checking accounts.
