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Simple English definitions for legal terms
mutual association
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A quick definition of mutual association:
A mutual association is a type of savings and loan organization where people deposit their money as shares of the association. It is owned by the members who use its services. A mutual association cannot issue stock and is regulated by the Office of Thrift Supervision. It is different from a regular bank because it is owned by its members.A more thorough explanation:
Definition: A cooperative savings and loan association where the deposits are shares of the association. It is mutually owned and not allowed to issue stock. It is usually regulated by the Office of Thrift Supervision, an agency of the U.S. Treasury Department.
Example: A mutual association is like a credit union where members pool their money together to provide loans and other financial services to each other. The members are also the owners of the association and have a say in how it is run.
Explanation: The example illustrates how a mutual association works by showing how members come together to provide financial services to each other. The members are also the owners of the association, which means they have a say in how it is run and how profits are distributed.