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Policy Update Notification

November 21, 2023

A notice has been sent to all members regarding an update to our bylaws relating to member suspension and expulsion. This was a notice required by our regulator, the NCUA, as we adopted their new language.

Please note that your accounts are not affected and there is no action to take.


Notification of Update to Policy and Bylaws

The NCUA recently provided guidance on Membership Expulsion and Suspension of Services. Therefore, we have updated our bylaws and policy with this new language.

ORNL FCU may terminate your membership in one of three ways:

1. 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.

2. Through a nonparticipation policy given to each member that follows certain requirements.

3. By a two-thirds vote of a quorum of the directors of the credit union for cause.

Cause is defined as follows: (A) a substantial or repeated violation of the Universal Account Agreement with ORNL FCU; (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 ORNL FCU, including in connection with our employees conducting business on behalf of us.

Before the board votes on an expulsion, ORNL FCU must provide written notice to the affected member’s mail address (or email, if applicable) on record or personally provide the written notice. ORNL FCU must provide the specific reasons for the expulsion and allow the member an opportunity to rebut those reasons through a hearing if the member chooses. It is the member’s responsibility to keep their contact information with ORNL FCU up to date, and to open and read notices from ORNL FCU. Unless we determine to allow otherwise, there is no right to an in-person hearing with the board. If the member fails to request a hearing within 60 calendar days of receipt of the notice, they will be expelled. Members may submit any complaints about their pending expulsion or expulsion to the NCUA’s Consumer Assistance Center if the complaint cannot be resolved with the credit union.

ORNL FCU will confirm any expulsion with a letter with information on the effect of the expulsion and how the expelled member can request reinstatement. Expulsion or withdrawal from membership does not relieve a member of liability to the credit union, and we may demand immediate repayment of the money the expelled member owes to us after expulsion, subject to any applicable contract terms and conditions.

For additional information on expulsion and suspension, see Article XIV of our Organizational Bylaws.

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