PETITION OF:

SECTION 1. Section 11 of Chapter 170 of the General Laws, as mot recently amended by Chapter 221 of the Acts of 2006, is hereby further amended by striking out the second paragraph and inserting in place thereof the following paragraph;

The security committee shall perform such other duties as may be requested of them by law, and shall exercise such other powers as may be delegated to them by the board of directors. Whenever loans are made and completed pursuant to power delegated by the board of directors, a report including a list of all such loans shall be submitted by the president or treasurer to the directors at their next monthly meeting in such form as the directors may require and such report and any action taken by the board thereon, shall be made part of the records of such meeting. At each meeting of the directors, the president, treasurer or the security committee shall submit a report consisting of a detailed written statement containing the following information for the period since the last regular meeting of the directors, such report to be filed with the records of the meeting and shall be retained for a period of 6 years from the date of the meeting; such report shall cover the following transactions:

(1) changes in reserve or contingency accounts;

(2) lists of the following loans, setting forth the total liabilities of the borrower to the corporation, both secured and unsecured:

(i) loans in excess of $50,000 each, overdue for more than 30 days, other than real estate mortgage loans;

(ii) real estate mortgage loans on which interest is more than 6 months in arrears;

(iii) all loans secured and unsecured, and discounts of any borrower including both direct and indirect liabilities made during the period.

Upon application in writing by any such corporation the commissioner may waive or modify the information in clauses (1) and (2) to be included in such report.

SECTION 2.

Section 14 of Chapter 170 of the General Laws as appearing in the 2004 Official Edition is hereby amended striking out said section and replace it with the following new section.

Section 14: The commissioner shall have the same powers and duties in respect to co-operative banks which he has in respect to savings banks. At least once during each twelve months following their election, and more often if required by the commissioner, the audit committee, referred to in section eleven, shall have an audit made of the balance sheet of the corporation and such other financial statements as it may prescribe.

The audit shall be made by an independent certified public accountant as set forth in the last paragraph of section thirty-three of chapter thirteen in accordance with generally accepted auditing standards and in such form and manner and at such time within said twelve months as the audit committee may prescribe. Within thirty days after its election, the audit committee shall appoint an accountant and written notice thereof shall be given to the commissioner.

The accountant shall report in writing to the audit committee the results of the audit. At the next meeting of the directors thereafter, the audit committee shall render a report, which shall be read and be signed by the committee, stating the nature, extent and results of the audit and whether it accepts the accountant’s report.

The audit committee shall file with the commissioner a copy of the accountant’s report within thirty days after its receipt and maintain another copy with the records of the corporation. If the audit committee fails to have an audit as herein provided, the commissioner shall have an audit made by an independent certified public accountant as set forth in the last paragraph of section thirty-three of chapter thirteen in such form and manner as the commissioner may prescribe, and the expense thereof shall be paid by the corporation.

SECTION 3.

Section 16 of Chapter 172 of the General Laws, as most recently amended by Chapter 221 of the Acts of 2006, is hereby amended by striking out said section and inserting in place thereof the following new section:

Section 16. The board of directors shall meet at intervals of not less than quarterly; but, upon application in writing by the corporation, the commissioner may waive or modify this requirement. Unless the articles of incorporation or the by-laws otherwise provide, members of the board of trustees or any committee designated thereby may participate in a meeting of such board or committee by means of a conference telephone or similar communications equipment by means of which all persons participating in the meeting may simultaneously hear each other, and participation by such means shall constitute presence in person at a meeting. Members may transmit any written authorizations that may be required during the meeting by electronic facsimile or other commercially acceptable transmission. At intervals of not more than quarterly, the treasurer or any other officer designated by the board of directors shall submit to a meeting of the board of directors a written report, over his signature, for the period running from the closing date of the last report to a date not more than 18 days prior to the date of the meeting at which the report is submitted. The report shall be filed with the records of the meeting and shall be retained for a period of 6 years from the date of the meeting. The report shall provide a summary of the following transactions:

(1) changes in investments;

(2) changes in reserve or contingency accounts;

(3) lists of the following loans, setting forth total liabilities of the borrower to the corporations, both secured and unsecured:--

(i) loans in excess of $50,000 each, overdue for more than 30 days, other than real estate mortgage loans;

(ii) real estate mortgage loans on which interest is more than 6 months in arrears;

(iii) real estate mortgage loans concerning which any tax upon the underlying security has been paid and not repaid to the corporations;

(iv) all loans secured and unsecured, and discounts of any borrower including both direct and indirect liabilities made during the period which brings aggregate liabilities of such borrower to an amount in excess of $100,000, with a notation of any line of credit possessed by the borrower, but, for banks with total assets in excess of $1,000,000,000 as of the most recent call report, the amount of aggregate liabilities outstanding to a single borrower shall be $250,000.

Upon application in writing by any such corporation the commissioner in his discretion may waive or modify the list of transactions to be included in such report.