§ 464. Manner of withdrawal; expulsion or suspension of members;
effect upon liabilities to credit unions. 1. A member desiring to
withdraw from a credit union shall file a written notice of his or her
intention to withdraw. However, a member who fails to complete payment
of one share within six months of his or her admission to membership, or
within six months from an increase in the par value of shares, or a
member who reduces his or her share balance below the par value of one
share and does not increase the balance to at least the par value of one
share within six months of the reduction will be considered to have
withdrawn from membership in the credit union.

2. The board of directors, pursuant to a written policy approved by
such board, may expel or suspend any member who has not carried out his
or her engagements with the credit union, or who has been convicted of a
criminal offense, or who neglects or refuses to comply with the
provisions of this article, or of the bylaws, or who habitually neglects
to pay his or her debts, or who becomes insolvent or bankrupt, or who is
physically or verbally abusive to credit union members or staff. Such
written policy shall include the conditions and procedures under which a
member may be expelled or may be suspended, in whole or in part,
regarding member participation in services and other rights and benefits
of membership; provided, however, that a member who has been suspended
may continue to maintain a share account and may continue to vote at
annual and special meetings.

(a) Except as provided in paragraph (b) of this subdivision, a member
shall not be expelled or suspended unless he or she has been informed in
writing of the charges against him or her and has been provided the
opportunity to be heard within thirty days of the date of the mailing or
delivery of such written notice.

(b) In the case of a member who has been physically abusive or who has
made threats of physical harm or violence, such member may be suspended
or expelled from the date of the mailing or delivery of a written notice
of such action and the reasons for the suspension or expulsion. As part
of such notice, the member shall be advised of the opportunity to
request reinstatement and to be heard within thirty days of the date of
the mailing or delivery of such notice.

3. Any member of a credit union who withdraws or is suspended or
expelled shall not be relieved of any liability to the corporation. The
amounts paid in on shares or deposited by such members, together with
any dividends credited to their shares and any interest which has
accrued on their deposits, shall be repaid to them in the order of their
withdrawal, suspension or expulsion, as funds become available therefor,
but the credit union may deduct from such payments any sums due it from
such members.