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The Vermont Statutes Online



Title

08

:
Banking and Insurance






Chapter

221

:
ORGANIZATION AND MANAGEMENT OF CREDIT UNION






Subchapter

003
:
GOVERNING BODY, OFFICERS, AND COMMITTEES










 

§

31311. Suspension and removal

(a) The

governing body of a credit union shall have the power to remove, by a

two-thirds vote of its members at a regular or special meeting, a director or a

governing-body-appointed committee member:

(1) who fails,

without good cause, to attend three consecutive meetings of the governing body

or committee or one-half of such meetings held during a calendar year;

(2) who is no

longer qualified to serve; or

(3) for any of

the causes enumerated and in accordance with subsection (b) of this section.

(b) The

governing body of a credit union shall have the power to suspend at any time,

by a two-thirds' vote of its members, at a regular or special meeting, any

director, member of a governing-body-appointed committee, officer, or agent for

good cause, including:

(1) a violation

of any statute, regulation, or order applicable to such credit union;

(2) the

participation in any unsafe or unsound practice in connection with such credit

union;

(3) the

commission of or participation in a crime which is punishable by imprisonment

for a term exceeding one year under state or federal law, as charged in any

information, indictment, or complaint, and if continued service or

participation by such director, member of a governing-body-appointed committee,

officer, or agent may pose a threat to the interests of the members of such

credit union;

(4) the failure

of such person to perform his or her duties or breach of his or her fiduciary

duty;

(5) the use of

his or her official position in a manner contrary to the interests of the

credit union or its members; and

(6) the breach

of a written agreement with the Commissioner.

(c) The

suspension shall take effect immediately, and the Commissioner shall be

notified promptly of such suspension. Within seven business days after the

effective date of the suspension, the governing body shall cause notice to be

given to all members of the credit union of a special meeting of members to be

held for the purpose of hearing the report of the governing body regarding the

suspension and voting on removal, provided such notice shall not be given if

the director, member of a governing-body-appointed committee, officer, or agent

who is subject to suspension resigns. The special meeting shall be held no more

than 21 business days after the effective date of the suspension. The

membership of the credit union shall have, by majority vote, the authority to

accept or reject the report of the governing body. If such action involves

removal, the credit union shall promptly notify the Commissioner of such

removal.

(d) If any

person required to be bonded by this part or by applicable regulation shall

cease to be bonded or shall lose his or her ability to be bonded, such person

shall be suspended and removed immediately, and the Commissioner shall be

notified promptly of such suspension and removal.

(e) The

supervisory committee shall have the power to suspend at any time, by a

two-thirds' vote of its members at a meeting called for that purpose, any

director, member of a governing-body-appointed committee, officer, or agent for

cause. The suspension shall take effect immediately, and the Commissioner shall

be notified promptly of such suspension. Not later than seven business days

after the effective date of the suspension, the supervisory committee shall

cause notice to be given to all members of the credit union of a special

meeting of members to be held for the purpose of hearing the report of the

supervisory committee regarding the suspension and voting on removal, provided

such notice shall not be given if the person who is subject to suspension

resigns. The special meeting shall be held no more than 21 business days after

the date of suspension. The membership of the credit union shall have the

authority to accept or reject the report of the supervisory committee. The

supervisory committee shall take any action with respect thereto as the members

deem necessary. If such action involves removal, the credit union shall

promptly notify the Commissioner of such removal. (Added 2005, No. 16, § 1,

eff. July 1, 2005.)