Chapter 008

2017 -- S 0700 SUBSTITUTE A Enacted 06/19/2017

A N   A C T

RELATING TO FINANCIAL INSTITUTIONS--CREDIT UNIONS

Introduced By: Senator Michael J. McCaffrey

Date Introduced: April 04, 2017

It is enacted by the General Assembly as follows:

SECTION 1. Section 19-5-18 of the General Laws in Chapter 19-5 entitled "Credit

Unions" is hereby amended to read as follows:

19-5-18. Expulsion of members.

The board of directors Credit union management may expel from the credit union any

member who has not fulfilled his or her duties toward the credit union,; or who has been

convicted of a criminal offense,; or who neglects or refuses to comply with the provisions of this

chapter or of the credit union's by-laws bylaws,; or who habitually neglects to pay debts,; or who

shall become insolvent or bankrupt,; or who shall have deceived the credit union with regard to

the use of borrowed money, but no member shall be expelled until credit union management has

provided the member a notice that member has been informed in writing of the charges against

him or her, and an opportunity has been given to him or her, after reasonable notice, to be heard

by the board of directors. The member shall have the right to file a written appeal to the board of

directors to reconsider the expulsion notice. The written appeal must be filed within ten (10)

business days of the receipt of expulsion notice. No such expulsion shall operate to relieve the

member from any remaining liability to the credit union.

SECTION 2. This act shall take effect upon passage.

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LC002188/SUB A

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