A new state law which removes deposit caps for state chartered credit unions went into effect yesterday.

The Massachusetts Credit Union Share Insurance Corp. (MSIC) will now fully insure excess shares and deposits above the federal insurance limit of $250,000 at all of its member credit unions across the state.

Founded in 1961, MSIC is a nonprofit organization that provides excess share and deposit insurance for credit unions and their members in the commonwealth. Excess shares and deposits are funds that have been deposited at a credit union that exceed $250,000, the amount insured by the federal government through the National Credit Union Share Insurance Fund (NCUSIF).

MSIC was the first insurance company in the nation to provide deposit insurance protection to credit union members, according to a statement.