RURAL CREDITS 777 



rural districts. Seven or more residents of the commonwealth are 

 given the right to associate themselves together for such purposes. 

 The character of the business is indicated by the following extracts 

 from the law: 



SECTION 5. A credit union may receive the savings of its members in 

 payment for shares or on deposit; may lend to its members at reasonable 

 rates, or invest, as hereinafter provided, the funds so accumulated; and 

 may undertake such other activities relating to the purpose of the associa- 

 tion, as its by-laws may authorize 



SEC. 7. No credit union shall receive deposits or payments on account 

 of shares, or make any loans, until its by-laws have been approved in writing 

 by the bank commissioner, nor shall any amendments to its by-laws become 

 operative until they have so been approved. 



SEC. 8. All property of a credit union, except real estate, and all capi- 

 tal stock in a credit union shall be exempt from state and local taxation, 

 except legacy and succession taxes. 



SEC. 9. The capital of a credit union shall be unlimited in amount. 

 Shares of capital stock may be subscribed for and paid in such manner as 

 the by-laws shall prescribe, except that the par value of shares shall not 

 exceed ten dollars. 



SEC. 10. Shares may be issued and deposits received in the name of 

 a minor 



SEC. 1 1 . The capital, deposits and surplus funds of a credit union shall 

 be invested in loans to members with the approval of the credit committee 

 as provided in section seventeen of this act, and any capital, deposits, or 

 surplus funds in excess of the amount for which loans shall be approved by 

 the credit committee may be deposited in savings banks or trust companies 

 incorporated under the laws of this commonwealth, or in national banks 

 located therein, or may be invested in the bonds of any other credit unions 

 or any farmland bank incorporated under the laws of this commonwealth 

 or in any securities which are at the time of their purchase legal investments 

 for savings banks in this commonwealth, or, with the approval of the bank 

 commissioner, may be deposited in other credit unions or may be invested 

 in the shares of other credit unions or of farmland banks or co-operative 

 banks incorporated under the laws of this commonwealth: provided, that 

 the total amount invested in the shares of other credit unions, farmland 

 banks or co-operative banks shall not exceed 30 per cent of the capital and 

 surplus, and that not more than 20 per cent shall be invested in the shares 

 of other credit unions, nor more than 20 per cent in farmland bank shares, 

 nor more than 20 per cent in co-operative bank shares. 



SEC. 13. (Annual and special meetings) .... No member shall be 

 entitled to vote by proxy or to have more than one vote, and, after a credit 

 union has been incorporated one year, no member thereof shall be entitled 

 to vote until he has been a member for more than three months. 



