Membership Limitation of Services and Expulsion Policy
The National Institutes of Health Federal Credit Union (NIHFCU) will take appropriate action in response to member behavior that is illicit, threatening, abusive, or otherwise overly disruptive to NIHFCU operations or any activity that causes a financial loss or is associated with fraud or increased reputational or regulatory compliance risk to the NIHFCU.
Along with the NIHFCU bylaws, which require a membership to be terminated if the share account falls below the $1 par value for longer than six months, the NIHFCU will address unacceptable conduct for the protection of its members, employees, and property.
MEMBER EXPECTATIONS
All members are entitled to attend, participate, and vote at the annual and special meetings of the members and must maintain Par value in the regular share account. Access to other products, services, or facilities is not a membership right.
A Member in Good Standing:
Members in good standing retain all their rights and privileges in the NIHFCU. A member that meets all of the following is considered a Member in Good Standing:
1. Maintains a minimum regular share par value of $1 as defined within the NIHFCU’s bylaws and this policy.
2. Has no account with an active limitation of service notation.
3. Has not caused an unrecovered monetary loss to NIHFCU.
4. Has not engaged in violent, belligerent, disruptive, or abusive activities such as:
Violence, intimidation, threats, harassment, or physical or verbal abuse of duly elected or appointed officials or employees of the NIHFCU, members, or agents of the NIHFCU. This includes actions only on NIHFCU premises and through communication by telephone, mail, email, or other electronic methods.
Causing or threatening damage to NIHFCU property.
Permitting or engaging in unauthorized use of, or access to, NIHFCU property.
Knowingly disseminating incorrect, misleading, confidential, or proprietary information regarding the NIHFCU.
Taking any actions that may cause the NIHFCU material risk or financial harm.
Any action deemed as an attempt to defraud the NIHFCU, such as using counterfeit or altered IDs or misrepresenting personal nonpublic information.
Member Not in Good Standing-Limitation of Services
At a minimum, a member that is not in good standing will be subject to a limitation of NIHFCU services and may be subject to expulsion from membership.
Expulsion from Membership
NIHFCU may terminate your membership in one of three ways.
Special Meeting: The first way is through a special meeting. Under this option, we may call a special meeting of the members, provide you an opportunity to be heard, and obtain a two-thirds vote of the members present at the special meeting in favor of your expulsion.
Nonparticipation Maintaining Par Value in Regular Share Account: The second way to terminate your membership is when a membership is found to not be in good standing, specifically related to not maintaining par value. Once the regular share account has been below par value for 6 months, the membership will automatically close.
For Cause: The third way to terminate your membership is by a two-thirds vote of a quorum of the directors of the credit union for cause (i.e., when a membership is not in good standing)
Cause is defined as follows:
(A) a substantial or repeated violation of the Membership and Account Agreement with NIHFCU.
(B) a substantial or repeated disruption, including dangerous or abusive behavior, to the credit union’s operations; or
(C) fraud, attempted fraud, or a conviction of other illegal conduct that a member has been convicted of in relation to NIHFCU, including in connection with our employee’s conducting business on behalf of us.
Before the board votes on an expulsion, NIHFCU must provide written notice to your mail address (or email, if applicable) on record or personally provide the written notice. NIHFCU must provide the specific reasons for the expulsion and allow you an opportunity to rebut those reasons through a hearing if you choose. It is your responsibility to keep your contact information with NIHFCU up to date, and to open and read notices from NIHFCU.
Unless the NIHFCU determines to allow otherwise, there is no right to an in-person hearing with the board. If you fail to request a hearing within 60 calendar days of receipt of the notice, you will be expelled.
You may submit any complaints about your pending expulsion or expulsion to NCUA’s Consumer Assistance Center if the complaint cannot be resolved with the credit union. NIHFCU will confirm any expulsion with a letter with information on the effect of the expulsion and how you can request reinstatement.
Expulsion or withdrawal from membership does not relieve a member of their liability to the credit union, and we may demand immediate repayment of the money you owe to us after expulsion, subject to any applicable contract terms and conditions.
For additional information on the limitation of services or expulsion, see the Membership and Account Agreement Sections 28 and 29, The NIHFCU Membership Limitation and Expulsion Policy or Article XIV of the NIHFCU Bylaws.
