---
kind: "section"
citation: "12 U.S.C. § 1764"
title: "12"
title_heading: "Banks and Banking"
number: "1764"
heading: "Expulsion and withdrawal"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/12/1764"
units:
  - "Chapter 14 — Federal Credit Unions"
  - "Subchapter I — General Provisions"
---

# §1764. Expulsion and withdrawal

- (a) **Expulsion by two-thirds vote—** Except as provided in subsections [(b)](#b) and [(c)](#c) of this section, a member may be expelled by a two-thirds vote of the members of a [Federal credit union](/usc/12/1752.md?p=1) present at a special meeting called for the purpose, but only after opportunity has been given to the member to be heard.
- (b) **Expulsion based on nonparticipation—** The [board](/usc/12/1752.md?p=4) of [directors](/usc/12/5481.md?p=10) of a [Federal credit union](/usc/12/1752.md?p=1) may, by majority vote of a quorum of [directors](/usc/12/5481.md?p=10), adopt and enforce a policy with respect to expulsion from membership based on nonparticipation by a member in the affairs of the [credit](/usc/12/5481.md?p=7) union. In establishing its policy, the [board](/usc/12/1752.md?p=4) should consider a member’s failure to vote in annual [credit](/usc/12/5481.md?p=7) union elections or failure to purchase shares from, obtain a loan from, or lend to the [Federal credit union](/usc/12/1752.md?p=1). If such a policy is adopted, written notice of the policy as adopted and the effective date of such policy shall be mailed to each member of the [credit](/usc/12/5481.md?p=7) union at the member’s current address appearing on the records of the [credit](/usc/12/5481.md?p=7) union not less than thirty days prior to the effective date of such policy. In addition, each new member shall be provided written notice of any such policy prior to or upon applying for membership.
- (c) **Expulsion for cause—**
  - (1) **In general—** Except as provided in subsections [(a)](#a) and [(b)](#b) of this section, a member may be expelled for cause by a two-thirds vote of a quorum of the [directors](/usc/12/5481.md?p=10) of the [Federal credit union](/usc/12/1752.md?p=1) pursuant to a policy which the National [Credit](/usc/12/5481.md?p=7) Union [Administration](/usc/12/1752.md?p=3) [Board](/usc/12/1752.md?p=4) shall adopt, pursuant to a rulemaking, not later than the end of the 18-month period following March 15, 2022.
  - (2) **Distribution of policy to members—** A [Federal credit union](/usc/12/1752.md?p=1) may not expel a member pursuant to this subsection unless the [Federal credit union](/usc/12/1752.md?p=1) has provided, in written or electronic form, a copy of the policy adopted by the National [Credit](/usc/12/5481.md?p=7) Union [Administration](/usc/12/1752.md?p=3) [Board](/usc/12/1752.md?p=4) under [paragraph (1)](#c-1) to each member of the [Federal credit union](/usc/12/1752.md?p=1).
  - (3) **Procedures—**
    - (A) **Notification of pending expulsion—** If a member will, subject to the policy adopted under [paragraph (1)](#c-1), be subject to expulsion, the member shall be notified in advance of the expulsion, along with the reason for such expulsion. Such notice shall be provided in [person](/usc/12/5481.md?p=19), by mail to the member’s address, or, if the member has elected to receive electronic communications from the [Federal credit union](/usc/12/1752.md?p=1), may be provided electronically.
    - (B) **Right to a hearing—**
      - (i) **In general—** A member shall have 60 days from the date of receipt of a notification under [subparagraph (A)](#c-3-A) to request a hearing from the [board](/usc/12/1752.md?p=4) of [directors](/usc/12/5481.md?p=10) of the [Federal credit union](/usc/12/1752.md?p=1).
      - (ii) **Expulsion if no hearing—** If a member does not request a hearing during the 60-day period described under [clause (i)](#c-3-B-i), the member shall be expelled after the end of the 60-day period.
    - (C) **Hearing; vote on expulsion—** If a member requests a hearing during the 60-day period described under [subparagraph (B)(i)](#c-3-B-i)—
      - (i) the [board](/usc/12/1752.md?p=4) of [directors](/usc/12/5481.md?p=10) of the [Federal credit union](/usc/12/1752.md?p=1) shall provide the member with a hearing; and
      - (ii) after such hearing, the [board](/usc/12/1752.md?p=4) of [directors](/usc/12/5481.md?p=10) of the [Federal credit union](/usc/12/1752.md?p=1) shall hold a vote in a timely manner on expelling the member.
    - (D) **Notice of expulsion—** If a member is expelled under subparagraph [(B)(ii)](#c-3-B-ii) or [(C)(ii)](#c-3-C-ii), notice of the expulsion of the member shall be provided to the member in [person](/usc/12/5481.md?p=19), by mail to the member’s address, in written form or, if the member has elected to receive electronic communications from the [Federal credit union](/usc/12/1752.md?p=1), may be provided electronically.
  - (4) **Reinstatement—**
    - (A) **In general—** A member expelled under this subsection—
      - (i) shall be given an opportunity to request reinstatement of membership; and
      - (ii) may be reinstated by either—
        - (I) a majority vote of a quorum of the [directors](/usc/12/5481.md?p=10) of the [Federal credit union](/usc/12/1752.md?p=1); or
        - (II) a majority vote of the members of the [Federal credit union](/usc/12/1752.md?p=1) present at a meeting.
    - (B) **Rule of construction—** Nothing in this paragraph may be construed to require that an expelled member be allowed to attend the meeting described in [subparagraph (A)(ii)](#c-4-A-ii) in [person](/usc/12/5481.md?p=19).
  - (5) **Cause defined—** In this subsection, the term “cause” means—
    - (A) a substantial or repeated violation of the membership agreement of the [Federal credit union](/usc/12/1752.md?p=1);
    - (B) a substantial or repeated disruption, including dangerous or abusive behavior (as defined by the National [Credit](/usc/12/5481.md?p=7) Union [Administration](/usc/12/1752.md?p=3) [Board](/usc/12/1752.md?p=4) pursuant to a rulemaking), to the operations of a [Federal credit union](/usc/12/1752.md?p=1); or
    - (C) fraud, attempted fraud, or other illegal conduct that a member has been convicted of in relation to the [Federal credit union](/usc/12/1752.md?p=1), including the [Federal credit union](/usc/12/1752.md?p=1)’s employees conducting business on behalf of the [Federal credit union](/usc/12/1752.md?p=1).
- (d) **Liability to credit union—** Withdrawal or expulsion of a member pursuant to subsection [(a)](#a), [(b)](#b), or [(c)](#c) of this section shall not operate to relieve the member from liability to the [Federal credit union](/usc/12/1752.md?p=1). The amount to be paid a withdrawing or expelled member by a [Federal credit union](/usc/12/1752.md?p=1) shall be determined and paid in a manner specified in the bylaws.
- (e) **No authority to expel classes of members—** An expulsion of a member pursuant to this section shall be done individually, on a case-by-case basis, and neither the [Board](/usc/12/1752.md?p=4) nor any [Federal credit union](/usc/12/1752.md?p=1) may expel a class of members.

## Source credit

(June 26, 1934, ch. 750, title I, § 118, formerly § 14, 48 Stat. 1221; renumbered § 19, Pub. L. 86–354, § 1, Sept. 22, 1959, 73 Stat. 634; renumbered title I, § 118, Pub. L. 91–468, § 1(2), Oct. 19, 1970, 84 Stat. 994; amended Pub. L. 97–320, title V, § 525, Oct. 15, 1982, 96 Stat. 1534; Pub. L. 100–86, title VII, § 706, Aug. 10, 1987, 101 Stat. 653; Pub. L. 117–103, div. T, § 102, Mar. 15, 2022, 136 Stat. 824.)

## Notes

### Editorial Notes

### Amendments

2022—Subsec. (a). Pub. L. 117–103, § 102(1), substituted “subsections (b) and (c)” for “subsection (b)” and “to the member” for “him”.

Subsec. (c). Pub. L. 117–103, § 102(3), added subsec. (c). Former subsec. (c) redesignated (d).

Subsec. (d). Pub. L. 117–103, § 102(2), (4), redesignated subsec. (c) as (d) and substituted “subsection (a), (b), or (c)” for “either subsection (a) or (b)” and “the member” for “him”.

Subsec. (e). Pub. L. 117–103, § 102(5), added subsec. (e).

1987—Subsec. (a). Pub. L. 100–86, § 706(1), substituted “Except as provided in” for “Subject to”.

Subsec. (b). Pub. L. 100–86, § 706(2), inserted “and enforce” after “adopt”.

1982—Pub. L. 97–320 designated existing provisions as subsecs. (a) and (c) and added subsec. (b).