Iowa Code 533.210 – Expulsion or withdrawal of credit union member
Current as of: 2023 | Check for updates
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1. The board of directors may expel any member of a state credit union who has failed to do either of the following:
a. Carry out the member’s obligations to the state credit union.
b. Comply with the state credit union’s bylaws or policies.
Terms Used In Iowa Code 533.210
- Board: means the engineering and land surveying examining board provided by this chapter. See Iowa Code 542B.2
- credit union: is a lso a "supervised financial organization" as that term is defined and used in chapter 537, the Iowa consumer credit code. See Iowa Code 533.102
- following: when used by way of reference to a chapter or other part of a statute mean the next preceding or next following chapter or other part. See Iowa Code 4.1
- state: when applied to the different parts of the United States, includes the District of Columbia and the territories, and the words "United States" may include the said district and territories. See Iowa Code 4.1
- State credit union: means a credit union organized pursuant to section 533. See Iowa Code 533.102
2. A member of a state credit union may be expelled by a majority vote of the board of directors at a regular or special meeting of the board.
a. An expelled member may request a hearing before the membership of the state credit union, which shall be held within sixty days of an expelled member’s request.
b. At the hearing, the membership may reinstate the expelled member by majority vote, upon terms and conditions prescribed at the hearing.
3. Any member may withdraw from the state credit union at any time, but advance notice of withdrawal of shares or deposits may be required as provided in this section.
4. After deducting all amounts due from the member to the state credit union and the amount necessary to honor outstanding share drafts drawn against accounts of the member, all amounts paid on shares or as deposits of an expelled or withdrawn member, along with accrued dividends and interest to the date of expulsion or withdrawal, shall be paid to that member.
5. Upon expulsion or withdrawal of a member from a state credit union, or at any other time, the state credit union may require sixty days’ notice of intention to withdraw shares and thirty days’ notice of intention to withdraw deposits, except that a state credit union shall not at any time require notice of withdrawal with respect to funds that are subject to withdrawal by share drafts.
6. Expelled or withdrawn members shall have no further rights in the state credit union. However, expelled or withdrawn members shall not be released from any remaining liability to the state credit union because of the expulsion or withdrawal.