Legal Definitions - mutual association

Definition: A cooperativesavings and loanassociation 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.