2017 -- H 6000 SUBSTITUTE A

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2017

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A N   A C T

RELATING TO FINANCIAL INSTITUTIONS--CREDIT UNIONS

     Introduced By: Representatives Marszalkowski, Casimiro, and Shekarchi

     Date Introduced: March 24, 2017

     Referred To: House Corporations

     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 has been convicted of a

criminal offense, or neglects or refuses to comply with the provisions of this chapter or of the

credit union's by-laws, or who habitually neglects to pay debts, or shall become insolvent or

bankrupt, or 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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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO FINANCIAL INSTITUTIONS--CREDIT UNIONS

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     This act would transfer the expulsion power of members to credit union management

from the board of directors, provide written notice to the member of expulsion, and would

establish a ten (10) business day appeal procedure to the board of directors.

     This act would take effect upon passage.

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