§ 464 — Manner of withdrawal; expulsion or suspension of members; effect upon liabilities to credit unions

New York § 464

• Jurisdiction: New York
• Law BNK: Banking
• Art. 11: Credit Unions

Text

§ 464. Manner of withdrawal; expulsion or suspension of members;\neffect upon liabilities to credit unions. 1. A member desiring to\nwithdraw from a credit union shall file a written notice of his or her\nintention to withdraw. However, a member who fails to complete payment\nof one share within six months of his or her admission to membership, or\nwithin six months from an increase in the par value of shares, or a\nmember who reduces his or her share balance below the par value of one\nshare and does not increase the balance to at least the par value of one\nshare within six months of the reduction will be considered to have\nwithdrawn from membership in the credit union.\n 2. The board of directors, pursuant to a written policy approved by\nsuch board, may expel or suspend any member who has not carried out his\nor her engagements with the credit union, or who has been convicted of a\ncriminal offense, or who neglects or refuses to comply with the\nprovisions of this article, or of the bylaws, or who habitually neglects\nto pay his or her debts, or who becomes insolvent or bankrupt, or who is\nphysically or verbally abusive to credit union members or staff. Such\nwritten policy shall include the conditions and procedures under which a\nmember may be expelled or may be suspended, in whole or in part,\nregarding member participation in services and other rights and benefits\nof membership; provided, however, that a member who has been suspended\nmay continue to maintain a share account and may continue to vote at\nannual and special meetings.\n (a) Except as provided in paragraph (b) of this subdivision, a member\nshall not be expelled or suspended unless he or she has been informed in\nwriting of the charges against him or her and has been provided the\nopportunity to be heard within thirty days of the date of the mailing or\ndelivery of such written notice.\n (b) In the case of a member who has been physically abusive or who has\nmade threats of physical harm or violence, such member may be suspended\nor expelled from the date of the mailing or delivery of a written notice\nof such action and the reasons for the suspension or expulsion. As part\nof such notice, the member shall be advised of the opportunity to\nrequest reinstatement and to be heard within thirty days of the date of\nthe mailing or delivery of such notice.\n 3. Any member of a credit union who withdraws or is suspended or\nexpelled shall not be relieved of any liability to the corporation. The\namounts paid in on shares or deposited by such members, together with\nany dividends credited to their shares and any interest which has\naccrued on their deposits, shall be repaid to them in the order of their\nwithdrawal, suspension or expulsion, as funds become available therefor,\nbut the credit union may deduct from such payments any sums due it from\nsuch members.\n