An Act to allow municipalities to invest in credit unions

This bill allows Massachusetts municipalities to invest their funds in credit unions and federal credit unions, expanding the types of financial institutions they can support alongside existing options like banks and cooperative banks. By amending several state laws, the legislation removes previous restrictions that limited municipal investments to specific bank types, thereby opening up credit unions as a potential investment vehicle for local governments. Additionally, the bill sets a safety limit requiring that public funds held by any single credit union cannot exceed 25% of that institution's total assets at any given time. These changes directly affect local governments and the credit unions operating within the state by creating new opportunities for public capital deployment while maintaining a cap to ensure financial stability.