2017 -- S 0700

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LC002188

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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: Senator Michael J. McCaffrey

     Date Introduced: April 04, 2017

     Referred To: Senate Commerce

     It is enacted by the General Assembly as follows:

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

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Unions" is hereby amended to read as follows:

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     19-5-18. Expulsion of members.

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

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member who has not fulfilled his or her duties toward the credit union, or has been convicted of a

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

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

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bankrupt, or shall have deceived the credit union with regard to the use of borrowed money, but

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no member shall be expelled until credit union management has provided the member a notice

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that member has been informed in writing of the charges against him or her, and an opportunity

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has been given to him or her, after reasonable notice, to be heard by the board of directors. The

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member shall have the right to file a written appeal to the board of directors to reconsider the

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expulsion notice. No such expulsion shall operate to relieve the member from any remaining

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liability to the credit union.

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     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

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

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

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     This act would take effect upon passage.

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