Credit Union Governance Modernization Act of 2021
Credit Union Governance Modernization Act of 2021
This bill revises the procedure for expelling members from a federal credit union. Specifically, a member may be expelled for cause pursuant to a policy adopted by a majority vote of a quorum of the directors of a credit union. Currently, a member may be expelled by a two-thirds vote of the credit union membership present at a special meeting.
The member may request a hearing from the board of directors. After the hearing, the board shall hold a vote on expelling the member.
The expelled member may request reinstatement through a two-thirds vote of the members present at a meeting.
Member conduct that may be cause for expulsion includes
- a material loss to the credit union,
- a violation of the credit union membership agreement,
- a substantial disruption to the operations of a credit union,
- fraud or attempted fraud, and
- other illegal or inappropriate behavior.
Ordered to be Reported in the Nature of a Substitute (Amended) by Voice Vote.