Minnesota Session Laws - 1988, Regular Session

  

                         Laws of Minnesota 1988 

                        CHAPTER 597-S.F.No. 1708 
           An act relating to credit unions; permitting managers 
          to be directors; providing conditions for the 
          expulsion of members; amending Minnesota Statutes 
          1986, sections 52.08; and 52.19. 
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1986, section 52.08, is 
amended to read:  
    52.08 [ANNUAL MEETING.] 
    At the annual meeting the credit union shall elect a board 
of directors of not less than five members, a supervisory 
committee of three members, and may elect a credit committee of 
not less than three members, all to hold office for the terms 
provided in the bylaws and until successors qualify.  Some or 
all of the terms of office may be staggered, as provided in the 
bylaws.  A record of the names and addresses of the members of 
the board and committees and the officers shall be filed with 
the commissioner of commerce within ten days of their election.  
No A full time manager of a credit union shall may be a director 
of a credit union operating under this chapter. 
    The organization meeting shall be the first annual meeting. 
    Sec. 2.  Minnesota Statutes 1986, section 52.19, is amended 
to read:  
    52.19 [EXPULSION OR WITHDRAWAL OF MEMBERS.] 
    Subdivision 1.  A member may be expelled by a two-thirds 
vote of the members present at a special meeting called to 
consider the matter, but only after a hearing.  A member may 
also be expelled by the board of directors in accordance with a 
procedure and policy under subdivision 2.  Any member may 
withdraw from the credit union at any time, but notice of 
withdrawal may be required.  All amounts paid on shares or as 
deposits of an expelled or withdrawing member, with any 
dividends or interest accredited thereto, to the date thereof, 
shall, as funds become available and after deducting all amounts 
due from the member to the credit union and an amount as 
necessary to honor outstanding share drafts drawn against the 
accounts of the member, be paid to the member.  The credit union 
may require 60 days' notice of intention to withdraw shares and 
30 days' notice of intention to withdraw deposits, except that a 
credit union shall not at any time require notice of withdrawal 
of funds subject to withdrawal by share drafts.  Withdrawing or 
expelled members shall have no further right in the credit 
union, but are not, by the expulsion or withdrawal, released 
from any remaining liability to the credit union. 
    Subd. 2.  The board of directors may adopt a procedure and 
policy for expulsion of members for nonparticipation in the 
affairs of the credit union.  The policy must be based on:  
      (1) failure to purchase and maintain at least one credit 
union share or to pay entrance or membership fees, if any; or 
     (2) causing monetary loss to the credit union. 
If adopted, written notice of the procedure and policy and their 
effective date shall be mailed not less than 30 days before 
their effective date to each member of the credit union at the 
member's address on the credit union records.  Each new member 
shall be provided written notice of the procedure and policy 
before or upon applying for membership. 
    Approved April 21, 1988