Policy 2232: Membership Expulsion and/or Service Limitation
Revised Date: 03/28/2023
Reviewed Date: 07/10/2025
Board Approved Date: 07/22/2025
This policy outlines the various actions, up to and including expulsion from membership, which Western New York Federal Credit Union (Credit Union) may take in response to behavior that is illegal, threatening, abusive, or otherwise disruptive to credit union operations and/or any activity that causes a financial loss, is associated with fraud, and/or increased reputational or regulatory compliance risk to the Credit Union. Any suspension or limitation of service is subject to the discretion of appropriate management personnel.
This policy is not enacted to restrict the rights of membership, but rather to address certain unacceptable conduct and protect the Credit Union’s members, employees and property.
All members are entitled to maintain a single share (defined as the par value share or membership share) in the Credit Union and are eligible to attend, participate and vote at the annual and special meetings of the members and maintain a share account. No other access to products, services, or facilities is a right of membership. All such access may be reduced or limited at the discretion of the Credit Union.
A member in good standing is a member who:
In the Federal Credit Union Bylaws, “cause” means:
The Credit Union may limit services for any member that is not in good standing. For violent, belligerent, disruptive, or abusive activities, the Credit Union will limit services when there is a logical relationship between the activities and the services to be suspended. For example, if a member is verbally or physically abusive to a Credit Union employee or other members, the Credit Union may refuse to permit the member onto the Credit Union premises and/or may further restrict the availability of certain services to limit personal contact with Credit Union employees or members. Whether violent, belligerent, disruptive, or abusive activities has occurred will be determined in the sole discretion of the Credit Union and Credit Union’s Management.
The Credit Union will notify the member of what accounts or services have been discontinued.
A member who has caused the Credit Union a loss but has indicated to the Credit Union an intent to repay that loss in a manner that is acceptable to the Credit Union (in the discretion of management), and who is in fact following through with repayment arrangements, will not be expelled. The Credit Union Upper Management will periodically determine which members satisfy the foregoing expulsion criteria.
The Credit Union will notify members who have caused the Credit Union a loss of the Credit Union’s expulsion policy and will provide such members with the opportunity (as deemed appropriate by Credit Union management) to indicate to the Credit Union their desire to pay their debts and to begin repayment.
The Credit Union Chief Executive Officer will provide the Chairman of the Board of Directors a list of members who, after having been notified of their proposed expulsion, have failed to show the Credit Union their intent to repay their debt.
The Chairman of the Board of Directors shall subsequently call a special meeting of the membership for the purpose of expelling such members, after they have been given the opportunity to be heard, in accordance with the procedures prescribed by the bylaws of the Credit Union.
A member who has failed to vote in annual Credit Union elections or failed to purchase shares from, obtain a loan from, or lend to the Credit Union may be deemed to be non-participatory and expelled from membership.
At least thirty days prior to the effective date, the Credit Union will mail to each member at their current address a copy of this policy. New members will be provided written notice of this policy prior to or upon applying for membership.
If provided within the bylaws, the Credit Union may expel a member for cause with two-thirds vote of the Board if the Credit Union has provided a written copy of Article XIV of their bylaws or a copy of the standard disclosure notice to each member of the Credit Union. The Credit Union will follow their procedures for proper written notification requirements, timelines for hearings, meetings, and record retention.
The Credit Union will include either a copy of Article XIV of their bylaws or the standard disclosure as indicated in Credit Union procedures, to all members.
If a member is subject to expulsion, the member will be notified in advance and in writing for the reason. The notice will also include (at a minimum):
Expelled members shall continue to be liable to the Credit Union for any outstanding amounts owed to the Credit Union. The Credit Union will ensure that this provision will be stated in its membership agreement provided to members upon acceptance to Credit Union membership.