Section 2. Ten or more persons, the majority of whom reside in the commonwealth, who have associated themselves by a written agreement with the intention of forming a corporation for the purpose of accumulating and receiving the savings of its members in payment for shares or on deposit, in making loans to them at reasonable rates for provident purposes and investing, as hereinafter provided, the funds so accumulated, may with the consent of the commissioner, become such a corporation upon complying with sections two to six, inclusive. Such corporation shall have all the powers and privileges, be subject to all the duties, restrictions and liabilities set forth in all General Laws relating to such corporations and may undertake such other activities relating to the purpose of the corporation as the by-laws may authorize.

Terms Used In Massachusetts General Laws ch. 171 sec. 2

  • Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.

The agreement of association shall specifically state:

(a) that the subscribers thereto associate themselves with the intention of forming a corporation;

(b) the name by which the corporation shall be known. A corporation organized under this chapter shall include in its corporate name the words ”credit union”. Other distinguishing words may be used;

(c) the location of the principal office of the corporation, which shall be within the commonwealth;

(d) the purposes for which the corporation is formed and the nature of the business to be transacted; and

(e) the name of each incorporator.

Each incorporator shall subscribe his name to the agreement of association.

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