§412:10-109  Membership.  (a)  Themembership of a credit union shall consist of those persons who share a commonbond set forth in the articles of association, have been duly admitted members,have paid any required one-time or periodic membership fee, or both, havesubscribed to one or more shares and have complied with such other requirementsas the articles of association and bylaws specify.

(b)  Organizations comprised primarily ofindividuals who are eligible for membership in the credit union, and corporationswhose total number of stockholders or whose majority stockholders are comprisedprimarily of such individuals, may be admitted to membership in the same mannerand under the same conditions as individuals.  Likewise, organizations one ofwhose principal functions is to provide services to persons who are eligiblefor membership in the credit union may be admitted to membership.  Otherorganizations having a commonality of interest with the credit union may beadmitted to membership with the approval of the commissioner.

(c)  Any credit union organized under thisarticle may accept as a member any other credit union organized under thischapter or federal law.

(d)  The board of directors shall act on allmembership applications, unless the board has appointed one or more membershipofficers, who shall be empowered to approve or disapprove membershipapplications according to criteria established in the bylaws and under thedirection of the board.  A record of the actions taken by a membership officershall be made available in writing to the board of directors for inspection. Any person whose application has been disapproved may appeal such decision tothe board in writing.

(e)  Members who cease to be eligible formembership may be permitted to retain their membership in the credit union,under reasonable standards established by the board of directors.

(f)  The members of a credit union shall not bepersonally or individually liable for the payment of the credit union's debtssolely by virtue of holding membership.

(g)  The board of directors may expel a memberfrom membership in the credit union, if such member fails to comply with thearticles, bylaws, rules, or regulations of the credit union, any law applicableto the credit union, or for any other just cause; provided that no member maybe expelled unless:

(1)  The member has been informed in writing of thereasons for the expulsion;

(2)  The member has, upon request, a reasonableopportunity to present evidence and argue against the expulsion, before ahearing panel consisting of the board of directors and the supervisorycommittee; and

(3)  If the hearing is requested, a majority of thehearing panel votes to expel the member.

The amounts paid by an expelled member for shares ofthe credit union shall be paid to such member after deducting any amounts dueby such member to the credit union; provided that such expulsion shall notrelieve the expelled member from any remaining liability to the credit union.

(h)  Any proposed change to a credit union'sfield of membership, whether it is an addition, deletion, or simple update,shall require the prior written approval of the commissioner.  Upon receipt ofthe commissioner's approval, the change shall be reflected formally in thecredit union's articles of association. [L 1993, c 350, pt of §1; am L 1995, c57, §1]