Sec. 26.3. (a) A credit union board may terminate the membership of, or terminate some or all services to, a member who does any of the following:

(1) Causes a loss to the credit union.

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Terms Used In Indiana Code 28-7-1-26.3

  • Fraud: Intentional deception resulting in injury to another.
  • in writing: include printing, lithographing, or other mode of representing words and letters. See Indiana Code 1-1-4-5
(2) Commits fraud or another misdeed against the credit union or against a person on the premises of the credit union.

     (b) Pending action by the credit union board at the credit union board’s next regularly scheduled meeting, a credit union may immediately suspend any credit union services to a member who does any of the following:

(1) Causes a loss to the credit union.

(2) Commits fraud or another misdeed against:

(A) the credit union; or

(B) a person on the premises of the credit union.

     (c) A member may withdraw from a credit union at any time. However, the credit union may require a notice of withdrawal from the withdrawing member as a condition of withdrawal.

     (d) Unless the withdrawal of a member occurs on a maturity date or not later than seven (7) days after a maturity date, a credit union may require that a withdrawing member give sixty (60) days written notice of the member’s intention to withdraw shares. A credit union may waive an applicable notice period for a specific member or account in writing.

     (e) After a termination or withdrawal under this section, the former member has no rights in the credit union. However, the termination or withdrawal does not release the former member from any remaining liability to the credit union.

As added by P.L.35-2010, SEC.165.