490.357 Suspension of services or termination or withdrawal of membership.

423 words·~2 min read·/mi/chapter-490/490-357

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

Sec. 357.

(1)The general manager or chief executive officer of a domestic credit union, or his or her designee, may suspend some or all services to a member, or terminate the membership of any person, that does any of the following:

(a)Causes a loss to the domestic credit union.

(b)Commits fraud or another misdeed against the domestic credit union or against a person on the premises of the domestic credit union.

(c)Engages in inappropriate behavior involving another individual, such as physical or verbal abuse of another member or an employee of the credit union.

(2)A member that has its services suspended or a person that has its membership terminated under subsection

(1)may appeal the suspension or termination to the credit union board within 90 days after the date of the suspension or termination. The credit union board has final authority to resolve an appeal under this subsection.

(3)A member may withdraw from a domestic credit union at any time, but the domestic credit union may require a notice of withdrawal from the withdrawing member as a condition of withdrawal.

(4)When money becomes available, and after deducting all amounts owed to the domestic credit union by the member, a domestic credit union shall pay a person whose membership is terminated or that is a withdrawing member any amounts paid on shares or as deposits of the member and any dividends or interest accrued on the shares or deposits before the date of payment.

(5)Unless the withdrawal of a member occurs on a maturity date or within 7 days after a maturity date, a domestic credit union may require that a withdrawing member give a 60-day notice of intention to withdraw shares or a 30-day notice of intention to withdraw deposits. A domestic credit union that requires a notice of intention to withdraw may wait until the expiration of the applicable notice period before complying with subsection (4). A domestic credit union may waive an applicable notice period for a specific member or account in writing.

(6)After a termination or withdrawal under this section, a former member has no rights in a domestic credit union, but the termination or withdrawal does not release the former member from any remaining liability to the domestic credit union.

History: 2003, Act 215 , Eff. June 1, 2004 ;-- Am. 2004, Act 471 , Imd. Eff. Dec. 28, 2004 ;-- Am. 2016, Act 152 , Eff. Sept. 7, 2016