An Act to allow municipalities to deposit in credit unions

This bill allows Massachusetts municipalities to deposit public funds into credit unions and federal credit unions, expanding options beyond traditional banks. It amends existing laws (chapters 29, 44, and 171) to explicitly include credit unions as acceptable depositories for public funds, while adding a 25% cap on the total public funds a credit union may hold relative to its assets. The policy directly affects towns, cities, and credit unions operating in Massachusetts by creating a new legal pathway for municipal deposits. The key mechanism is the updated legal language permitting these deposits under specified conditions, without altering existing requirements for municipal fund management.