Section 171:75 - Investments in building, improvements and equipment; purchase of insurance covering debtors; safe deposit vaults(a) A well capitalized or adequately capitalized credit union, as defined in 12 C.F.R. 702.102, may invest, for the convenient transactions of its business, in the aggregate, in any fixed assets in an amount not to exceed 5 per cent of the credit union's shares and retained earnings without advance regulatory approval. Included in such investments is the purchase, erection or preparation of rental property in a reasonable amount; provided, however, that the rental property is necessary to complete the purchase, erection or preparation; and provided further, that the commissioner may waive these requirements.(b) A credit union may: (i) invest an amount to be approved by the commissioner, subject to any applicable regulations as the commissioner may deem necessary, in a corporation or association formed for the purpose of furnishing statistical or bookkeeping services or information of the kind generally required by a credit union to such credit union or to other credit unions or banks as hereinafter provided; or (ii) invest its shares or deposits, in participation with any other credit union, bank or national banking association, in such corporation or association; provided, however, that section 2 of chapter 167 shall apply to such corporations or associations. Nothing contained herein shall be construed to preclude a credit union from renting or subscribing for the services of such corporations or associations or any other corporation or association rendering such services.(c) A credit union may purchase, by itself or with another credit union or bank, group life insurance on the lives of debtors who request such insurance. The premium for such insurance, or the premium on an individual life insurance policy held to cover the indebtedness, may be added to the payments required of those who elect to become insured. If a debtor so insured dies, the insurance proceeds shall be applied to reduce or extinguish the unpaid indebtedness to the extent of such payment. A director, officer or employee of such credit union shall not benefit financially, directly or indirectly, from the sale of such insurance.(d) A credit union may purchase by itself, or with a group of credit unions or banks, group accident and health insurance covering debtors of such credit union or group of credit unions if the debtors request such insurance. Such insurance shall cover all or part of the indebtedness of such debtors. The premium for such insurance, or the premium on an individual accident and health insurance policy held to cover the indebtedness, may be added to the payments required of any such debtor who elects to become insured. A director, officer or employee of such credit union shall not benefit financially, directly or indirectly, from the sale of such insurance.(e) A credit union may engage directly in the business of selling, issuing or registering checks, traveler's checks or money orders and may cash any check or money order whatsoever and may make charges for any of the foregoing.(f)(1) For the purposes of this subsection, the following terms shall have the following meanings: "Lessee", the person in whose name a safe deposit box stands on the books of a credit union;
"Rent", the amount due to a credit union for the rental or use of a safe deposit box;
"Safe deposit box", a box or safe in the vault of a credit union.
(2) A credit union may establish and maintain safe deposit vaults and rent safe deposit boxes or storage space therein under conditions prescribed by the commissioner.(3) A credit union that leases a safe deposit box for rent shall advise the lessee in writing that insurance coverage for the contents of the safe deposit box is not provided by the credit union but that the lessee may, at the lessee's own expense, insure the contents of the safe deposit box with an insurance company of the lessee's own selection. The commissioner shall establish the rules and regulations necessary to carry out this subsection.(4) If the rent for a safe deposit box has not been paid for 1 year after being due, the credit union may mail, postage prepaid, to the lessee at the lessee's address shown on the credit union's books, a notice stating that if the rent for the safe deposit box is not paid within 60 days from the date of the notice, the credit union may cause the safe deposit box to be opened and the contents to be disposed of in accordance with this subsection. If the lessee fails to pay the rent for the safe deposit box in full to the date of the notice within 60 days from the date of the notice, all rights of the lessee in the safe deposit box and of access to it shall cease. Any time thereafter, the credit union may, in the presence of an officer of the credit union and of a notary public not in the general employ of the credit union, cause the safe deposit box to be opened and the notary public shall: (i) remove the contents of the safe deposit box; (ii) list the contents; and (iii) seal the contents in a package, marking thereon the name of the lessee and the lessee's address as shown on the books of the credit union. An affidavit setting forth the facts concerning the entry and listing the contents of the safe deposit box shall be signed by the officer and the notary public and shall be retained by the credit union. The affidavit shall be prima facie evidence of the facts set forth therein in all proceedings at law and equity wherein evidence of such facts would be admissible. The affidavit shall be in substantially the following form:- COMMONWEALTH OF MASSACHUSETTS
County of ____
We, ___ an authorized official of ___ and ___ a notary public not in the general employ of said credit union, hereby certify that on the ___ day ___ (insert year), we were present and witnessed the forcible opening of Safe No. ___ leased in the name of ___ in the vaults of the ___ office of said credit union; that the contents of said safe were removed, examined, listed and then enclosed in a package and sealed in our presence. We further certify that the following is a true and complete list of all the contents removed from said safe.
(Allow space here for listing of contents.)
___________________________________________________________________
Signature of officer. Title.
___________________________________________________________________
Name of Credit Union
___________________________________________________________________
Signature of notary public not in the general employ of said credit union.
(5) The package containing the contents of any safe deposit box opened as aforesaid shall be retained on special deposit by the credit union subject to payment of rent due for the safe deposit box, all expenses incurred in connection with opening the safe deposit box and charges for the safekeeping of the package. If the package remains unclaimed for 7 years and the amounts due as above provided remain unpaid, the credit union may mail, postage prepaid, to the person to whom, and at the address at which, the notice provided for above was mailed, a notice stating that if such amounts are not be paid within 60 days from the date of such notice, the credit union will turn over the contents, less the rental charge, to the state treasurer as unclaimed and abandoned property, to be held by the state treasurer subject to chapter 200A. The credit union may sell, assign or deliver so much of the contents of the package, at public or private sale, as will enable it to realize such amount as will compensate the credit union for said charges.Mass. Gen. Laws ch. 171, § 75
Amended by Acts 2020, c. 338,§ 70, eff. 4/12/2021.Amended by Acts 2011, c. 90,§ 4, eff. 11/1/2011.Amended by Acts 2008, c. 423,§ 8, eff. 3/23/2009.