2019 New York Laws
BNK - Banking
Article 11 - Credit Unions
464 - Manner of Withdrawal; Expulsion or Suspension of Members; Effect Upon Liabilities to Credit Unions.

§  464.  Manner  of  withdrawal;  expulsion  or suspension of members;
effect upon liabilities to  credit  unions.  1.  A  member  desiring  to
withdraw  from  a credit union shall file a written notice of his or her
intention to withdraw. However, a member who fails to  complete  payment
of one share within six months of his or her admission to membership, or
within  six  months  from  an  increase in the par value of shares, or a
member who reduces his or her share balance below the par value  of  one
share and does not increase the balance to at least the par value of one
share  within  six  months  of  the reduction will be considered to have
withdrawn from membership in the credit union.
  2. The board of directors, pursuant to a written  policy  approved  by
such  board, may expel or suspend any member who has not carried out his
or her engagements with the credit union, or who has been convicted of a
criminal offense,  or  who  neglects  or  refuses  to  comply  with  the
provisions of this article, or of the bylaws, or who habitually neglects
to pay his or her debts, or who becomes insolvent or bankrupt, or who is
physically  or  verbally  abusive to credit union members or staff. Such
written policy shall include the conditions and procedures under which a
member may be expelled or  may  be  suspended,  in  whole  or  in  part,
regarding member participation in services and other rights and benefits
of  membership;  provided, however, that a member who has been suspended
may continue to maintain a share account and may  continue  to  vote  at
annual and special meetings.
  (a)  Except as provided in paragraph (b) of this subdivision, a member
shall not be expelled or suspended unless he or she has been informed in
writing of the charges against him or her  and  has  been  provided  the
opportunity to be heard within thirty days of the date of the mailing or
delivery of such written notice.
  (b) In the case of a member who has been physically abusive or who has
made  threats of physical harm or violence, such member may be suspended
or expelled from the date of the mailing or delivery of a written notice
of such action and the reasons for the suspension or expulsion. As  part
of  such  notice,  the  member  shall  be  advised of the opportunity to
request reinstatement and to be heard within thirty days of the date  of
the mailing or delivery of such notice.
  3.  Any  member  of  a  credit  union who withdraws or is suspended or
expelled shall not be relieved of any liability to the corporation.  The
amounts  paid  in  on shares or deposited by such members, together with
any dividends credited to  their  shares  and  any  interest  which  has
accrued on their deposits, shall be repaid to them in the order of their
withdrawal, suspension or expulsion, as funds become available therefor,
but  the credit union may deduct from such payments any sums due it from
such members.