Sec. 2. Expulsion of Federal credit union members for cause
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Section 118(a) of the Federal Credit Union Act ( 12 U.S.C. 1764(a) ) is amended to read as follows: Except as provided in subsection
(b)of this section, a member may be expelled for cause pursuant to a policy adopted by a majority vote of a quorum of the directors of the Federal credit union and provided in written or electronic form to all members of the Federal credit union. 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 written form or, if the member has elected to receive electronic communications from the Federal credit union, may be provided electronically. A member shall have 15 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. If a member does not request a hearing during the 15-day period described under clause (i), the member shall be expelled after the end of the 15-day period. If a member requests a hearing during the 15-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 on expelling the member in a timely manner. If a member is expelled under subparagraph (B)(ii) or (C)(ii), the member shall be provided with written or electronic notice of the expulsion. A member expelled under this subsection— shall be given an opportunity to request reinstatement of membership; and may be reinstated by a two-thirds vote of the members of the Federal credit union present at a meeting. 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. In this subsection, the term cause includes— a material loss to the Federal credit union; a violation of the membership agreement of the Federal credit union; a substantial disruption to the operations of a Federal credit union; and fraud, attempted fraud, other illegal behavior, or dangerous or abusive behavior, as defined by the policy described in paragraph (1), such as physical or verbal abuse of Federal credit union members or staff. .
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Sec. 2
Expulsion of Federal credit union members for cause
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