February 3, 1997
Steve Canfield, Executive Vice President
Northwest Farmers Insurance Group FCU
13333 SW 68th Parkway
Tigard, Oregon 97223
Re: Request for Interpretation of Section 118(a) of the FCU Act (Your January 16, 1997, Letter)
Dear Mr. Canfield:
You have asked whether a federal credit union may pursuant to Section 118(a) of the Federal Credit Union Act (FCU Act) expel a member who has caused a loss. As explained in the attached March 29, 1989, letter from Hattie M. Ulan, Assistant General Counsel to Mr. Scott Draughon, the answer is yes.
You next inquire as to the FCU Act's timing requirements for a special meeting. The FCU Act does not address this issue. Section 110 of the FCU Act states that "(s)pecial meetings may be held in the manner indicated in the bylaws." Article V, Sections 2 and 3 of the FCU Bylaws set forth the timing and notice requirements for calling a special meeting.
Michael J. McKenna
Acting Associate General Counsel