Title 12 — Banks and Banking
Chapter 14 — Federal Credit Unions
§ 1764. Expulsion and withdrawal
Statutory text
Expulsion by two-thirds vote
Except as provided in subsections (b) and (c) of this section, a member may be expelled by a two-thirds vote of the members of a Federal credit union present at a special meeting called for the purpose, but only after opportunity has been given to the member to be heard.
Expulsion based on nonparticipation
The board of directors of a Federal credit union may, by majority vote of a quorum of directors, adopt and enforce a policy with respect to expulsion from membership based on nonparticipation by a member in the affairs of the credit union. In establishing its policy, the board should consider a member’s failure to vote in annual credit union elections or failure to purchase shares from, obtain a loan from, or lend to the Federal credit union. If such a policy is adopted, written notice of the policy as adopted and the effective date of such policy shall be mailed to each member of the credit union at the member’s current address appearing on the records of the credit union not less than thirty days prior to the effective date of such policy. In addition, each new member shall be provided written notice of any such policy prior to or upon applying for membership.
Expulsion for cause
In general
Except as provided in subsections (a) and (b) of this section, a member may be expelled for cause by a two-thirds vote of a quorum of the directors of the Federal credit union pursuant to a policy which the National Credit Union Administration Board shall adopt, pursuant to a rulemaking, not later than the end of the 18-month period following .
Distribution of policy to members
A Federal credit union may not expel a member pursuant to this subsection unless the Federal credit union has provided, in written or electronic form, a copy of the policy adopted by the National Credit Union Administration Board under paragraph (1) to each member of the Federal credit union.
Procedures
Notification of pending expulsion
If a member will, subject to the policy adopted under paragraph (1), be subject to expulsion, the member shall be notified in advance of the expulsion, along with the reason for such expulsion. Such notice shall be provided in person, by mail to the member’s address, or, if the member has elected to receive electronic communications from the Federal credit union, may be provided electronically.
Right to a hearing
In general
A member shall have 60 days from the date of receipt of a notification under subparagraph (A) to request a hearing from the board of directors of the Federal credit union.
Expulsion if no hearing
If a member does not request a hearing during the 60-day period described under clause (i), the member shall be expelled after the end of the 60-day period.
Hearing; vote on expulsion
If a member requests a hearing during the 60-day period described under subparagraph (B)(i)—
the board of directors of the Federal credit union shall provide the member with a hearing; and
after such hearing, the board of directors of the Federal credit union shall hold a vote in a timely manner on expelling the member.
Notice of expulsion
If a member is expelled under subparagraph (B)(ii) or (C)(ii), notice of the expulsion of the member shall be provided to the member in person, by mail to the member’s address, in written form or, if the member has elected to receive electronic communications from the Federal credit union, may be provided electronically.
Reinstatement
In general
A member expelled under this subsection—
shall be given an opportunity to request reinstatement of membership; and
may be reinstated by either—
a majority vote of a quorum of the directors of the Federal credit union; or
a majority vote of the members of the Federal credit union present at a meeting.
Rule of construction
Nothing in this paragraph may be construed to require that an expelled member be allowed to attend the meeting described in subparagraph (A)(ii) in person.
Cause defined
In this subsection, the term “cause” means—
a substantial or repeated violation of the membership agreement of the Federal credit union;
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
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.
Liability to credit union
Withdrawal or expulsion of a member pursuant to subsection (a), (b), or (c) of this section shall not operate to relieve the member from liability to the Federal credit union. The amount to be paid a withdrawing or expelled member by a Federal credit union shall be determined and paid in a manner specified in the bylaws.
No authority to expel classes of members
An expulsion of a member pursuant to this section shall be done individually, on a case-by-case basis, and neither the Board nor any Federal credit union may expel a class of members.
Legislative history
Reconstructed from this section’s Code source credit and amendment notes, resolved against the local Statutes at Large. Editorial notes are evidence, not the law that made the change.
Pub. L. 73–750 · 48 Stat. 1216
Enacted · 12 U.S.C. § 1764
June 26, 1934, ch. 750, title I, § 118, formerly § 14, 48 Stat. 1221
Source evidence
Code source credit
June 26, 1934, ch. 750, title I, § 118, formerly § 14, 48 Stat. 1221Garn-St Germain Depository Institutions Act of 1982
Pub. L. 97–320 title V § 525 · 96 Stat. 1469
Amended · 12 U.S.C. § 1764
Pub. L. 97–320 designated existing provisions as subsecs. (a) and (c)
Added · 12 U.S.C. § 1764
Pub. L. 97–320 added subsec. (b)
Source evidence
Code amendment note
Pub. L. 97–320 designated existing provisions as subsecs. (a) and (c) and added subsec. (b).Enacted provision · exact public law section
Sec. 525. nonparticipation Section 118 of the Federal Credit Union Act (12 U.S.C. 1764) is amended to read as follows: “Sec. 118. “expulsion and withdrawal (a) Subject to subsection (b) of this section, a member may be expelled by a two-thirds vote of the members of a Federal credit union present at a special meeting called for the purpose, but only after opportunity has been given him to be heard. “(b) The board of directors of a Federal credit union may, by majority vote of a quorum of directors, adopt a policy with respect to expulsion from membership based on nonparticipation by a member in the affairs of the credit union. In establishing its policy, the board should consider a member’s failure to vote in annual credit union elections or failure to purchase shares from, obtain a loan from, or lend to the Federal credit union. If such a policy is adopted, written notice of the policy as adopted and the effective date of such policy shall be mailed to each member of the credit union at the member’s current address appearing on the records of the credit union not less than thirty days prior to the effective date of such policy. In addition, each new member shall be provided written notice of any such policy prior to or upon applying for membership. “(c) Withdrawal or expulsion of a member pursuant to either subsection (a) or (b) of this section shall not operate to relieve him from liability to the Federal credit union. The amount to be paid a withdrawing or expelled member by a Federal credit union shall be determined and paid in a manner specified in the bylaws.”.Credit Union Amendments of 1987
Pub. L. 100–86 § 706(1) · 101 Stat. 552
Substituted · 12 U.S.C. § 1764(a)
Pub. L. 100–86, § 706(1), substituted “Except as provided in” for “Subject to”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 100–86, § 706(1), substituted “Except as provided in” for “Subject to”.Enacted provision · exact public law section
(1) by striking out “Subject to” in subsection (a) and inserting in lieu thereof “Except as provided in”; andCredit Union Amendments of 1987
Pub. L. 100–86 § 706(2) · 101 Stat. 552
Inserted · 12 U.S.C. § 1764(b)
Pub. L. 100–86, § 706(2), inserted “and enforce” after “adopt”
Source evidence
Code amendment note
Subsec. (b). Pub. L. 100–86, § 706(2), inserted “and enforce” after “adopt”.Enacted provision · exact public law section
(2) by inserting “and enforce” after “adopt” in subsection (b).Department of Commerce Appropriations Act, 2022
Pub. L. 117–103 § 102(1) · 136 Stat. 49
Substituted · 12 U.S.C. § 1764(a)
Pub. L. 117–103, § 102(1), substituted “subsections (b) and (c)” for “subsection (b)”
Substituted · 12 U.S.C. § 1764(a)
Pub. L. 117–103, § 102(1), substituted “to the member” for “him”
Source evidence
Code amendment note
Subsec. (a). Pub. L. 117–103, § 102(1), substituted “subsections (b) and (c)” for “subsection (b)” and “to the member” for “him”.Enacted provision · exact public law section
Sec. 102. During the current fiscal year, appropriations made available to the Department of Commerce by this Act for salaries and expenses shall be available for hire of passenger motor vehicles as authorized by 31 U.S.C. 1343 and 1344; services as authorized by 5 U.S.C. 3109; and uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901–5902).Department of Commerce Appropriations Act, 2022
Pub. L. 117–103 § 102(3) · 136 Stat. 49
Redesignated · 12 U.S.C. § 1764(c)
Pub. L. 117–103, § 102(3), added subsec. (c). Former subsec. (c) redesignated (d)
Source evidence
Code amendment note
Subsec. (c). Pub. L. 117–103, § 102(3), added subsec. (c). Former subsec. (c) redesignated (d).Enacted provision · exact public law section
Sec. 102. During the current fiscal year, appropriations made available to the Department of Commerce by this Act for salaries and expenses shall be available for hire of passenger motor vehicles as authorized by 31 U.S.C. 1343 and 1344; services as authorized by 5 U.S.C. 3109; and uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901–5902).Department of Commerce Appropriations Act, 2022
Pub. L. 117–103 § 102(2) · 136 Stat. 49
Redesignated · 12 U.S.C. § 1764(d)
Pub. L. 117–103, § 102(2), (4), redesignated subsec. (c) as (d)
Substituted · 12 U.S.C. § 1764(d)
Pub. L. 117–103, § 102(2), (4), substituted “subsection (a), (b), or (c)” for “either subsection (a) or (b)”
Substituted · 12 U.S.C. § 1764(d)
Pub. L. 117–103, § 102(2), (4), substituted “the member” for “him”
Source evidence
Code amendment note
Subsec. (d). Pub. L. 117–103, § 102(2), (4), redesignated subsec. (c) as (d) and substituted “subsection (a), (b), or (c)” for “either subsection (a) or (b)” and “the member” for “him”.Enacted provision · exact public law section
Sec. 102. During the current fiscal year, appropriations made available to the Department of Commerce by this Act for salaries and expenses shall be available for hire of passenger motor vehicles as authorized by 31 U.S.C. 1343 and 1344; services as authorized by 5 U.S.C. 3109; and uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901–5902).Department of Commerce Appropriations Act, 2022
Pub. L. 117–103 § 102(5) · 136 Stat. 49
Added · 12 U.S.C. § 1764(e)
Pub. L. 117–103, § 102(5), added subsec. (e)
Source evidence
Code amendment note
Subsec. (e). Pub. L. 117–103, § 102(5), added subsec. (e).Enacted provision · exact public law section
Sec. 102. During the current fiscal year, appropriations made available to the Department of Commerce by this Act for salaries and expenses shall be available for hire of passenger motor vehicles as authorized by 31 U.S.C. 1343 and 1344; services as authorized by 5 U.S.C. 3109; and uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901–5902).
11 of 12 references resolved to an enrolled provision · 1 partial
Editorial Notes
Amendments1982–2022 · 3 rounds
2022
Subsec. (a). Pub. L. 117–103, § 102(1), substituted “subsections (b) and (c)” for “subsection (b)” and “to the member” for “him”.
Subsec. (c). Pub. L. 117–103, § 102(3), added subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 117–103, § 102(2), (4), redesignated subsec. (c) as (d) and substituted “subsection (a), (b), or (c)” for “either subsection (a) or (b)” and “the member” for “him”.
Subsec. (e). Pub. L. 117–103, § 102(5), added subsec. (e).
1987
Subsec. (a). Pub. L. 100–86, § 706(1), substituted “Except as provided in” for “Subject to”.
Subsec. (b). Pub. L. 100–86, § 706(2), inserted “and enforce” after “adopt”.
1982
Pub. L. 97–320 designated existing provisions as subsecs. (a) and (c) and added subsec. (b).
Credits
1934–2022 · 6 acts
- 1934June 26, 1934, ch. 750, title I, § 118, formerly § 14, 48 Stat. 1221
- 1959renumbered § 19, Pub. L. 86–354, § 1, , 73 Stat. 634
- 1970renumbered title I, § 118, Pub. L. 91–468, § 1(2), , 84 Stat. 994
- 1982amended Pub. L. 97–320, title V, § 525, , 96 Stat. 1534
- 1987Pub. L. 100–86, title VII, § 706, , 101 Stat. 653
- 2022Pub. L. 117–103, div. T, § 102, , 136 Stat. 824.
Show as published
(June 26, 1934, ch. 750, title I, § 118, formerly § 14, 48 Stat. 1221; renumbered § 19, Pub. L. 86–354, § 1, , 73 Stat. 634; renumbered title I, § 118, Pub. L. 91–468, § 1(2), , 84 Stat. 994; amended Pub. L. 97–320, title V, § 525, , 96 Stat. 1534; Pub. L. 100–86, title VII, § 706, , 101 Stat. 653; Pub. L. 117–103, div. T, § 102, , 136 Stat. 824.)