380 Mass. 398 | Mass. | 1980
United Employees Credit Union (United) seeks a declaration that it is entitled to return of the assessments paid to Massachusetts Credit Union Share Insurance Corporation (MCUSIC) pursuant to § 7 of the MCUSIC statute, St. 1961, c. 294, as amended.
We summarize the stipulated facts. United is a credit union organized under G. L. c. 171 and a member of
The parties agree that the MCUSIC statute does not explicitly authorize return of § 7 assessments to a member who voluntarily withdraws. The assessments paid pursuant to § 7 and § 8 make up the “share insurance fund.” § 8. MCUSIC is authorized to use the fund to provide financial assistance to troubled members, including their operation or liquidation. Section 7 assessments may be “charged by the member to its guaranty fund, reserve account, undivided earnings, or established as an asset”; § 8 assessments may only be “charged to the guaranty fund, reserve account, undivided earnings or operating expense.” “ Uniform refunds” of § 7 assessments over one per cent are authorized, and in the event of dissolution of MCUSIC § 7 assessments are to be distributed to the “then members” pro rata. § 10.
The MCUSIC statute bears some resemblance to the earlier statutes creating the mutual savings bank Deposit Insurance Fund, St. 1934, c. 43, and the cooperative bank Share
The cooperative bank statute makes provisions similar to those in the savings bank statute. St. 1934, c. 73, as amended by St. 1956, c. 323. But the cash refund to a bank which withdraws to join the Federal counterpart is one-half of its original one per cent assessment instead of its original assessment of one-fourth of one per cent. § 14 (a).
The bill which became the MCUSIC statute provided for return of assessments on voluntary liquidation of a member credit union or on its withdrawal. 1961 House Doc. No. 2652, § 8. On liquidation, the bill provided, MCUSIC “may” return to the member its proportionate share of all assessments under § 7 — the assessments of one per cent of its share balances. On withdrawal MCUSIC “may repay”
In the absence of any statutory provision for the situation that has arisen, the judge treated the assessments in question like insurance premiums, not subject to refund. Cf. North N.Y. Sav. Bank v. Federal Sav. & Loan Ins. Corp., 515 F.2d 1355, 1358-1360 (D.C. Cir. 1975); Euclid Nat’l Bank v. Federal Home Loan Bank Bd., 286 F. Supp. 125 (N.D. Ohio, 1966), aff’d, 396 F.2d 950 (6th Cir.), cert. denied, 393 U.S. 846 (1968). United argues with some force that § 7 assessments are designed to produce a reserve to be used only if § 8 assessments are insufficient, and hence are unlike premiums. United urges upon us instead the analogy of deposits made with mutual insurance companies in addition to premiums. We held that such deposits became “absolute funds of the company” when the by-laws explicitly so provided, but not otherwise. Compare Long Pond Mut. Fire Ins. Co. v. Houghton, 6 Gray 77, 83 (1857), with Fayette Mut. Fire Ins. Co. v. Fuller, 8 Allen 27, 33 (1864). United asserts further that it is explicitly authorized by G. L. c. 171, § 35, to become insured by Federal instead of State insurance, and that the imposition of a forfeiture by MCUSIC for doing so is inconsistent with the legislative policy.
These arguments are persuasive against forfeiture, and we do not understand MCUSIC to contend that there is a forfeiture. But even if United retains some interest in the unexpended balance of § 7 assessments paid by it, it is not shown how much of a refund should be made, nor when it should be made. The legislative precedents suggest that several rational solutions to these questions are possible, and that it may be proper to give considerable discretion to the directors of MCUSIC.
Judgment affirmed.
Statute 1961, c. 294, § 1, enacted a statute consisting of twelve sections, which have not been incorporated in the General Laws but may be found as c. 171 App. in both Mass. G. L. Ann. and Mass. Ann. Laws.
Statute 1934, cc. 43 & 73, have not been incorporated in the General Laws but may be found as c. 168 App. and c. 170 App., respectively, in both Mass. G. L. Ann. and Mass. Ann. Laws.