§ 1764. — Expulsion and withdrawal.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1764]
TITLE 12--BANKS AND BANKING
CHAPTER 14--FEDERAL CREDIT UNIONS
SUBCHAPTER I--GENERAL PROVISIONS
Sec. 1764. Expulsion and withdrawal
(a) Expulsion by two-thirds vote
Except as provided in 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) 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.
(c) Liability to credit union
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.
(June 26, 1934, ch. 750, title I, Sec. 118, formerly Sec. 14, 48 Stat.
1221; renumbered Sec. 19, Pub. L. 86-354, Sec. 1, Sept. 22, 1959, 73
Stat. 634; renumbered title I, Sec. 118, Pub. L. 91-468, Sec. 1(2), Oct.
19, 1970, 84 Stat. 994; amended Pub. L. 97-320, title V, Sec. 525, Oct.
15, 1982, 96 Stat. 1534; Pub. L. 100-86, title VII, Sec. 706, Aug. 10,
1987, 101 Stat. 653.)
Amendments
1987--Subsec. (a). Pub. L. 100-86, Sec. 706(1), substituted ``Except
as provided in'' for ``Subject to''.
Subsec. (b). Pub. L. 100-86, Sec. 706(2), inserted ``and enforce''
after ``adopt''.
1982--Pub. L. 97-320 designated existing provisions as subsecs. (a)
and (c) and added subsec. (b).
Section Referred to in Other Sections
This section is referred to in section 1759 of this title.
