17-2219.   Expulsion of members, when; procedure; members may withdraw;refund of money paid in.(a)Any member may be expelled from the credit union:

      (1)   By a 2/3 vote of the members present at any regularly called meetingof the membership; or

      (2)   in accordance with the provisions of subsection (b), by the board ofdirectors for a member's abuse of member account privileges, a member's act orfailure to act which causes financial loss to the credit union, or a member'sfailure to purchase shares and utilize loan or other services of the creditunion. The board of directors shall report the expulsion of a member at thenext regularly scheduled members' meeting.

      (b)   The board of directors of a credit union may adopt a policy withrespect to expulsion from membership for any reason set forth in paragraph(2) of subsection (a). If such a policy is adopted, written notice of thepolicy as adopted and effective date of such policy shall be mailed to eachmember of the credit union at the member's current address appearing on therecords of the credit union not less than 30 days prior to the effective dateof such policy. In addition, each new member shall be provided written noticeof any such policy prior to or upon applying for membership. The board ofdirectors of a creditunion shall provide the member with a notice of expulsion from themembership not less than 30 days prior to the effective date of theexpulsion. Within the thirty-day period, the member, by written request,may require the board of directors to bring the member's expulsion beforethe credit union membership at the next regularly scheduled members'meeting. If the member makes such written request, the board of directors'expulsion of such member shall be delayed until the credit union membershipvotes on such member's expulsion as provided under subsection (a).

      (c)   A member may withdraw from a credit union, as hereinafterprovided,by filing a writtennotice of such intention. All amounts paid on shares of an expelled orwithdrawing member, with any dividends credited to the member's shares tothe date of expulsion, or withdrawal, shall be paid to the member, but onlyas funds become available and after deducting any amounts due to the creditunion by the member. All shares of an expelled or withdrawing member, withany interest accrued, shall be paid to the member, subject to 60 days'notice, and after deducting any amounts due to the credit union by themember. The member, when withdrawing shares, shall have no further right inthe credit union or to any of its benefits, but such expulsion orwithdrawal shall not operate to relieve such member from any remainingliability to the credit union.

      History:   L. 1929, ch. 141, § 19; L. 1983, ch. 83, § 4;L. 1989, ch. 77, § 2;L. 1993, ch. 26, § 1; July 1.