12 U.S.C. § 1764
Section 1764 · Expulsion and withdrawal
Amended 6 times on record
Applied in 1 court decisions — leading case Joshua Shapiro v. America's Credit Union (2016)
Most recently applied in Joshua Shapiro v. America's Credit Union (May 2016)
How often courts cite this section
Court decisions citing this, by year.Markers show enactment, consequential amendments, and circuit splits over this section — watch for a citation surge after a change or a disagreement. The dip in the last several years is a data-coverage gap, not a real trend — our corpus holds fewer opinions from the most recent years, so recent citations are undercounted.
Except as provided in subsections (b) and (c) of this section, a member may be expelled by a two-thirds vote of the members of a Federal credit union present at a special meeting called for the purpose, but only after opportunity has been given to the member to be heard.
The board of directors of a Federal credit union may, by majority vote of a quorum of directors, adopt and enforce a policy with respect to expulsion from membership based on nonparticipation by a member in the affairs of the credit union. In establishing its policy, the board should consider a member’s failure to vote in annual credit union elections or failure to purchase shares from, obtain a loan from, or lend to the Federal credit union. If such a policy is adopted, written notice of the policy as adopted and the effective date of such policy shall be mailed to each member of the credit union at the member’s current address appearing on the records of the credit union not less than thirty days prior to the effective date of such policy. In addition, each new member shall be provided written notice of any such policy prior to or upon applying for membership.
Except as provided in subsections (a) and (b) of this section, a member may be expelled for cause by a two-thirds vote of a quorum of the directors of the Federal credit union pursuant to a policy which the National Credit Union Administration Board shall adopt, pursuant to a rulemaking, not later than the end of the 18-month period following March 15, 2022.
A Federal credit union may not expel a member pursuant to this subsection unless the Federal credit union has provided, in written or electronic form, a copy of the policy adopted by the National Credit Union Administration Board under paragraph (1) to each member of the Federal credit union.
If a member will, subject to the policy adopted under paragraph (1), be subject to expulsion, the member shall be notified in advance of the expulsion, along with the reason for such expulsion. Such notice shall be provided in person, by mail to the member’s address, or, if the member has elected to receive electronic communications from the Federal credit union, may be provided electronically.
A member shall have 60 days from the date of receipt of a notification under subparagraph (A) to request a hearing from the board of directors of the Federal credit union.
If a member does not request a hearing during the 60-day period described under clause (i), the member shall be expelled after the end of the 60-day period.
If a member requests a hearing during the 60-day period described under subparagraph (B)(i)—
the board of directors of the Federal credit union shall provide the member with a hearing; and
after such hearing, the board of directors of the Federal credit union shall hold a vote in a timely manner on expelling the member.
If a member is expelled under subparagraph (B)(ii) or (C)(ii), notice of the expulsion of the member shall be provided to the member in person, by mail to the member’s address, in written form or, if the member has elected to receive electronic communications from the Federal credit union, may be provided electronically.
A member expelled under this subsection—
shall be given an opportunity to request reinstatement of membership; and
may be reinstated by either—
a majority vote of a quorum of the directors of the Federal credit union; or
a majority vote of the members of the Federal credit union present at a meeting.
Nothing in this paragraph may be construed to require that an expelled member be allowed to attend the meeting described in subparagraph (A)(ii) in person.
In this subsection, the term “cause” means—
a substantial or repeated violation of the membership agreement of the Federal credit union;
a substantial or repeated disruption, including dangerous or abusive behavior (as defined by the National Credit Union Administration Board pursuant to a rulemaking), to the operations of a Federal credit union; or
fraud, attempted fraud, or other illegal conduct that a member has been convicted of in relation to the Federal credit union, including the Federal credit union’s employees conducting business on behalf of the Federal credit union.
Withdrawal or expulsion of a member pursuant to subsection (a), (b), or (c) of this section shall not operate to relieve the member from liability to the Federal credit union. The amount to be paid a withdrawing or expelled member by a Federal credit union shall be determined and paid in a manner specified in the bylaws.
An expulsion of a member pursuant to this section shall be done individually, on a case-by-case basis, and neither the Board nor any Federal credit union may expel a class of members.
Editorial notes U.S. Code · Office of the Law Revision Counsel
Editorial Notes
Amendments
2022—Subsec. (a). Pub. L. 117–103, § 102(1), substituted “subsections (b) and (c)” for “subsection (b)” and “to the member” for “him”.
Subsec. (c). Pub. L. 117–103, § 102(3), added subsec. (c). Former subsec. (c) redesignated (d).
Subsec. (d). Pub. L. 117–103, § 102(2), (4), redesignated subsec. (c) as (d) and substituted “subsection (a), (b), or (c)” for “either subsection (a) or (b)” and “the member” for “him”.
Subsec. (e). Pub. L. 117–103, § 102(5), added subsec. (e).
1987—Subsec. (a). Pub. L. 100–86, § 706(1), substituted “Except as provided in” for “Subject to”.
Subsec. (b). Pub. L. 100–86, § 706(2), inserted “and enforce” after “adopt”.
1982—Pub. L. 97–320 designated existing provisions as subsecs. (a) and (c) and added subsec. (b).