A proposal to create a policy for federal credit union (FCU) member expulsion, aimed at least in part at addressing members who may be a threat to others, is out for comment until Dec. 2, according to a notice in Monday’s Federal Register.
The proposal was issued for comment Sept. 22 as an amendment to the FCU standard bylaws of the National Credit Union Administration (NCUA) Board. It would amend those bylaws to provide a policy by which an FCU member may be expelled for cause by a two-thirds vote of a quorum of the FCU’s board of directors.
The agency notes that currently, a credit union could expel a credit union member in two ways: by a two-thirds vote of the membership present at a special meeting called for that purpose; and for non-participation in the affairs of the credit union as specified in a policy adopted and enforced by the board.
In background provided in Monday’s notice, however, the agency noted concerns aired previously by FCUs that they could not adequately protect employees and other members from violent and abusive members. The proposed policy allows the credit union board to expel such a member without the burden of requiring members to call a special meeting to seek to expel such members.
The proposal was issued upon a unanimous vote of the NCUA Board during its Sept. 22 open meeting.
Reg lookup: Federal Credit Union Bylaws