I 

117TH CONGRESS 

1ST SESSION H. R. 2311 

To amend the Federal Credit Union Act to modernize certain processes 

regarding expulsion of credit union members for cause, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 1, 2021 

Mr. EMMER (for himself and Mr. PERLMUTTER) introduced the following bill; 

which was referred to the Committee on Financial Services 

A BILL 

To amend the Federal Credit Union Act to modernize certain 

processes regarding expulsion of credit union members 

for cause, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Credit Union Govern5 ance Modernization Act of 2021’’. 

6 SEC. 2. EXPULSION OF FEDERAL CREDIT UNION MEMBERS 

7 FOR CAUSE. 

8 Section 118(a) of the Federal Credit Union Act (12 

9 U.S.C. 1764(a)) is amended to read as follows: 


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1 ‘‘(a) EXPULSION FOR CAUSE.— 

2 ‘‘(1) IN GENERAL.—Except as provided in sub3 section (b) of this section, a member may be expelled 

4 for cause pursuant to a policy adopted by a majority 

5 vote of a quorum of the directors of the Federal 

6 credit union and provided in written or electronic 

7 form to all members of the Federal credit union. 

8 ‘‘(2) PROCEDURES.— 

9 ‘‘(A) NOTIFICATION OF PENDING EXPUL10 SION.—If a member will, subject to the policy 

11 adopted under paragraph (1), be subject to ex12 pulsion, the member shall be notified in advance 

13 of the expulsion, along with the reason for such 

14 expulsion. Such notice shall be provided in writ15 ten form or, if the member has elected to re16 ceive electronic communications from the Fed17 eral credit union, may be provided electroni18 cally. 

19 ‘‘(B) RIGHT TO A HEARING.— 

20 ‘‘(i) IN GENERAL.—A member shall 

21 have 15 days from the date of receipt of a 

22 notification under subparagraph (A) to re23 quest a hearing from the board of directors 

24 of the Federal credit union. 


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1 ‘‘(ii) EXPULSION IF NO HEARING.—If 

2 a member does not request a hearing dur3 ing the 15-day period described under 

4 clause (i), the member shall be expelled 

5 after the end of the 15-day period. 

6 ‘‘(C) HEARING; VOTE ON EXPULSION.—If 

7 a member requests a hearing during the 15-day 

8 period described under subparagraph (B)(i)— 

9 ‘‘(i) the board of directors of the Fed10 eral credit union shall provide the member 

11 with a hearing; and 

12 ‘‘(ii) after such hearing, the board of 

13 directors of the Federal credit union shall 

14 hold a vote on expelling the member in a 

15 timely manner. 

16 ‘‘(D) NOTICE OF EXPULSION.—If a mem17 ber is expelled under subparagraph (B)(ii) or 

18 (C)(ii), the member shall be provided with writ19 ten or electronic notice of the expulsion. 

20 ‘‘(3) REINSTATEMENT.— 

21 ‘‘(A) IN GENERAL.—A member expelled 

22 under this subsection— 

23 ‘‘(i) shall be given an opportunity to 

24 request reinstatement of membership; and 


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1 ‘‘(ii) may be reinstated by a two2 thirds vote of the members of the Federal 

3 credit union present at a meeting. 

4 ‘‘(B) RULE OF CONSTRUCTION.—Nothing 

5 in this paragraph may be construed to require 

6 that an expelled member be allowed to attend 

7 the meeting described in subparagraph (A)(ii) 

8 in person. 

9 ‘‘(4) CAUSE DEFINED.—In this subsection, the 

10 term ‘cause’ includes— 

11 ‘‘(A) a material loss to the Federal credit 

12 union; 

13 ‘‘(B) a violation of the membership agree14 ment of the Federal credit union; 

15 ‘‘(C) a substantial disruption to the oper16 ations of a Federal credit union; and 

17 ‘‘(D) fraud, attempted fraud, other illegal 

18 behavior, or dangerous or abusive behavior, as 

19 defined by the policy described in paragraph 

20 (1), such as physical or verbal abuse of Federal 

21 credit union members or staff.’’. 

Æ 


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