MASSACHUSETTS CREDIT UNION SHARE INSURANCE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2023 AND 2022
N OTE 1 - N ATURE OF THE B USINESS The Massachusetts Credit Union Share Insurance Corporation (“MSIC” or the “Corporation”) is incorporated under the laws of the Commonwealth of Massachusetts for the purpose of creating and maintaining a fund for the insurance of shares and deposits of credit unions doing business in Massachusetts which are established under the laws of the Commonwealth of Massachusetts or of the United States. The Corporation is supervised by the Massachusetts Commissioner of Banks. The Corporation’s role is that of an excess deposit insurer. Primary federal deposit insurance for MSIC member credit unions is provided by the National Credit Union Share Insurance Fund (“NCUSIF”), which is administered by the National Credit Union Administration (“NCUA”), an independent federal regulatory agency. Accounts insured by the NCUSIF are generally insured up to a maximum of $250,000 per insured depositor. The Corporation insures the amounts in excess of the $250,000 per depositor insured by the NCUSIF. The Corporation has also established a fund, known as the Liquidity Reserve Fund (the “Fund”), for the purpose of promoting liquidity resources for its members. Approved members may maintain deposit balances with the Fund and other approved members may borrow from the Fund. Member deposits in the Fund are general liabilities of the Corporation, but have a preferential position over deposit insurance claims. The total balance of those deposits including any accrued interest on those deposits as of September 30, 2023 and 2022 was $19,388,034 and $23,824,692, respectively. The consolidated financial statements include the accounts of the Corporation’s wholly owned subsidiaries, MSIC Properties, LLC (the "Company") and MSIC CRE Manager, LLC (the “Manager”) and beginning in 2022, MSIC Partners, LLC (the “LLC”) which the Corporation now owns a controlling interest. The principal activity of the Company is owning real estate property. The Company owns a commercial real estate property (the "Property") located in Newton, Massachusetts, which is leased to unaffiliated third parties, with a portion of the Property being utilized for corporate use and the use of MSIC Partners, LLC. The current corporate uses include the Corporation's operations, executive offices and a training facility. Future corporate uses will include the Center for Credit Union Governance's educational activities. The principal activity of the Manager currently is to provide management services to the Company. The principal activity of the LLC is to provide services to support credit unions. Mortgage fulfillment services are currently the only services provided by the LLC.
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2023 ANNUAL REPORT 81
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