# Mass. Gen. Laws ch. 171, sec. 7: Use of words ''credit union'' restricted; penalties

> Massachusetts · Statutes · In force

URL: https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S7

## Section

- **Citation:** Mass. Gen. Laws ch. 171, sec. 7
- **Heading:** Use of words ''credit union'' restricted; penalties
- **Jurisdiction:** Massachusetts
- **Kind:** Statutes
- **Status:** In force
- **Text as of:** August 14, 2026
- **Source:** Compiled text
- **Location:** MA Code / Part I / Title XXII / Chapter 171 / Section 7

## Text

Section 7. No person, partnership or association, and no corporation, except one incorporated under this chapter or corresponding provisions of earlier laws or the Federal Credit Union Act or one incorporated as a credit union under the laws of any other state and authorized to do business in the commonwealth, shall hereafter receive payments on shares or deposits from its members and loan such payments on shares and deposits in the manner of a credit union or transact business under any name or title containing the words ''credit union''; provided, however, that an association of credit unions or an organization, corporation or association, whose membership or ownership is primarily limited to credit unions, may transact business in accordance with the purposes for which it was established under any name or title containing the words ''credit union''. Whoever violates any provision of this section shall be punished by a fine of not more than one thousand dollars, and the supreme judicial and superior courts shall have jurisdiction in equity to enforce the provisions of this section.

Section 7. No person, partnership or association, and no corporation, except one incorporated under this chapter or corresponding provisions of earlier laws or the Federal Credit Union Act or one incorporated as a credit union under the laws of any other state and authorized to do business in the commonwealth, shall hereafter receive payments on shares or deposits from its members and loan such payments on shares and deposits in the manner of a credit union or transact business under any name or title containing the words ''credit union''; provided, however, that an association of credit unions or an organization, corporation or association, whose membership or ownership is primarily limited to credit unions, may transact business in accordance with the purposes for which it was established under any name or title containing the words ''credit union''. Whoever violates any provision of this section shall be punished by a fine of not more than one thousand dollars, and the supreme judicial and superior courts shall have jurisdiction in equity to enforce the provisions of this section.

## Nearby sections

- [Mass. Gen. Laws ch. 171, sec. 1 Definitions](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S1.md)
- [Mass. Gen. Laws ch. 171, sec. 2 Incorporation; agreement of association](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S2.md)
- [Mass. Gen. Laws ch. 171, sec. 3 Notice to commissioner; investigation fee](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S3.md)
- [Mass. Gen. Laws ch. 171, sec. 4 First meeting of incorporators; notice](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S4.md)
- [Mass. Gen. Laws ch. 171, sec. 5 Articles of organization; certificate of incorporation](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S5.md)
- [Mass. Gen. Laws ch. 171, sec. 6 Transaction of business; authorization; approval of by-laws; failure to commence](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S6.md)
- [Mass. Gen. Laws ch. 171, sec. 6A Powers and permissible activities; regulations](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S6A.md)
- [Mass. Gen. Laws ch. 171, sec. 6B Savings promotion raffles](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S6B.md)
- [Mass. Gen. Laws ch. 171, sec. 7 Use of words ''credit union'' restricted; penalties](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S7.md)
- [Mass. Gen. Laws ch. 171, sec. 8 Location changes; branches and depots; consolidations or mergers; mobile branch banking](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S8.md)
- [Mass. Gen. Laws ch. 171, sec. 8A Purchase, establishment, installation, etc. of electronic branches; location; safeguards](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S8A.md)
- [Mass. Gen. Laws ch. 171, sec. 8B Educational credit union, student savings deposit and school branch office programs](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S8B.md)
- [Mass. Gen. Laws ch. 171, sec. 8C Application by foreign credit union or out-of-state federal credit union to establish new branch in the commonwealth](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S8C.md)
- [Mass. Gen. Laws ch. 171, sec. 8D Examination of affairs of foreign credit union or out-of-state federal credit union](https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S8D.md)

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Source: Frix Law Library, https://www.frixlaw.com/law-library/statutes/STATE_MA_PI_TXXII_C171_S7. Check the current official text before relying on it. Not legal advice.