12 USC 1764 - Expulsion and withdrawal

U.S Code last checked for updates: Nov 22, 2024

§ 1764.

Expulsion and withdrawal

(a)

Expulsion by two-thirds vote

(b)

Expulsion based on nonparticipation

(c)

Expulsion for cause

(1)

In general

(2)

Distribution of policy to members

(3)

Procedures

(A)

Notification of pending expulsion

(B)

Right to a hearing

(i)

In general

(ii)

Expulsion if no hearing

(C)

Hearing; vote on expulsion

If a member requests a hearing during the 60-day period described under subparagraph (B)(i)—

(i)

the board of directors of the Federal credit union shall provide the member with a hearing; and

(ii)

after such hearing, the board of directors of the Federal credit union shall hold a vote in a timely manner on expelling the member.

(D)

Notice of expulsion

(4)

Reinstatement

(A)

In general

A member expelled under this subsection—

(i)

shall be given an opportunity to request reinstatement of membership; and

(ii)

may be reinstated by either—

(I)

a majority vote of a quorum of the directors of the Federal credit union; or

(II)

a majority vote of the members of the Federal credit union present at a meeting.

(B)

Rule of construction

(5)

Cause defined

In this subsection, the term “cause” means—

(A)

a substantial or repeated violation of the membership agreement of the Federal credit union;

(B)

a substantial or repeated disruption, including dangerous or abusive behavior (as defined by the National Credit Union Administration Board pursuant to a rulemaking), to the operations of a Federal credit union; or

(C)

fraud, attempted fraud, or other illegal conduct that a member has been convicted of in relation to the Federal credit union, including the Federal credit union’s employees conducting business on behalf of the Federal credit union.

(d)

Liability to credit union

(e)

No authority to expel classes of members

(June 26, 1934, ch. 750, title I, § 118, formerly § 14, 48 Stat. 1221; renumbered § 19, Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 634; renumbered title I, § 118, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 97–320, title V, § 525, Oct. 15, 1982, 96 Stat. 1534; Pub. L. 100–86, title VII, § 706, Aug. 10, 1987, 101 Stat. 653; Pub. L. 117–103, div. T, § 102, Mar. 15, 2022, 136 Stat. 824.)

cite as: 12 USC 1764