§ 14 — Expulsion of members

Massachusetts § 14

• Jurisdiction: Massachusetts
• Part I: ADMINISTRATION OF THE GOVERNMENT
• Title XXII: CORPORATIONS
• Ch. 171: CREDIT UNIONS

Text

Section 14. The board of directors may expel from a credit union a member who: (i) has not carried out the member's engagements with the credit union; (ii) has been convicted of a criminal offense; (iii) neglects or refuses to comply with this chapter or the by-laws of the credit union; (iv) habitually neglects to pay the member's debts; or (v) has deceived the corporation or any committee thereof with regard to the use of borrowed money; provided, however, that a member shall not be expelled until the member has been provided with reasonable notice in writing of the charges against the member and with an opportunity to be heard; provided further, that a director who becomes insolvent or bankrupt shall be withdrawn from the board of directors automatically, with no requirement for notice or an opportunity to be heard; and provided further, that the board of directors may suspend from the credit union any member who has been convicted of a criminal offense.The amounts paid in on shares or deposited by members who have withdrawn or have been expelled shall be paid to them, in the order of withdrawal or expulsion, but only as funds therefor become available and after deducting any amounts due from such members to the credit union. Such expulsion shall not operate to relieve a member from any outstanding liability to the credit union.