§ 23-35-404 - Expulsion of members.

23-35-404. Expulsion of members.

(a) A member of a credit union may be expelled by the board of directors of the credit union, but only after he has been given an opportunity to be heard regarding the purpose of the expulsion. A written notice of this hearing, setting forth the time, place, and date for the meeting, shall be forwarded to the member by the board together with the charges which serve as the basis for the expulsion.

(b) The member may be expelled for:

(1) Failure to meet the conditions of his membership;

(2) Failure to carry out his obligations to the credit union;

(3) Conviction of a felony;

(4) Neglect or refusal to comply with the laws and bylaws under which the credit union operates;

(5) Habitual neglect to pay obligations;

(6) Insolvency; or

(7) Bankruptcy.

(c) If the board votes to expel the member, he shall remain liable for any sums owed to the credit union for loans or other purposes.

(d) The credit union may require sixty (60) days' written notice to withdraw shares or deposits by the member, as funds become available.