MSIC’s CUSO Bill Signed by Governor Patrick
After over four years of effort, MSIC’s CUSO legislation was adopted during the recent Massachusetts legislative session and signed into law by Governor Deval Patrick on August 6, 2014. The law, Chapter 253 of the Massachusetts Acts of 2014, will take effect on November 4. The new law provides authority for MSIC to invest directly in CUSOs otherwise authorized for credit unions. Also, the law broadens MSIC’s investment authorities and makes a few administrative changes to the MSIC governing statute. "This new law will give MSIC the tools necessary to adequately diversify its investment portfolio. Also, MSIC can now invest in CUSOs with member institutions”, said Mike Hanson, MSIC’s President and CEO.
MSIC has developed a long range plan to create CUSOs with member institutions in order to reduce the institutions’ operating costs and to generate an additional source of revenue for participating credit unions. MSIC is planning a CEO summit later this year for interested CEOs to finalize the mechanics of the CUSO plan.
MSIC has had great legislative success over the past three sessions. In 2010 it was instrumental in removing deposit caps for Massachusetts-chartered credit unions with the passage of Chapter 284. In 2012, MSIC’s Liquidity Reserve Fund was authorized by Chapter 220, and now MSIC’s CUSO bill has been enacted. "This legislative success was a team effort, and many of our Board Members, Advisory Committee members and CEOs of member credit unions all played a role in this achievement. Many thanks
to them all”, said Hanson.