Membership

V.S.A. tit. 8, ch. 221, subch. 4

in effect

8 V.S.A. § 31401 Field of membership

31401. Field of membership (a)(1) Except as provided in subdivision (2) of this subsection, the field of membership of a credit union is limited to: (A) a single common bond membership; (B) a multiple common bond membership; (C) persons or organizations within one or more well-defined communities, neighborhoods, municipalities, or counties; or (D) any combination of subdivisions (A), (B), or (C). (2) Within the field of membership of a credit union, members may include: (A) members of the immediate family or household of all members of the credit union included under subdivision (1)(A), (B), (C), or (D) of this subsection; (B) organizers and employees of such credit union; (C) the surviving spouse or party to a civil union of a deceased member of such credit union; and (D) notwithstanding any change in employment, occupation, residence, or other condition initially controlling the eligibility for membership in any credit union, any person properly admitted to membership in a credit union who may continue membership during such person’s lifetime. (3) The field of membership may include associations and organizations of individuals, the majority of whom are eligible for membership in such credit union, partnerships in which the majority of the partners are individuals who are eligible for membership in such credit union, corporations in which the majority of shareholders are individuals who are eligible for membership in such credit union, and such entities in which a majority of the employees are individuals who are eligible for membership in such credit union. (b)(1) The Commissioner may approve an amendment to the bylaws of a credit union to expand its field of membership if the Commissioner finds that: (A) the credit union has not engaged in any material unsafe or unsound practice during the one-year period preceding the date on which the proposed amendment is filed with the Commissioner; (B) the credit union maintains its net worth in accordance with subchapter 5 of this chapter; and (C) the credit union has the administrative capability to serve the proposed membership group and the financial resources to meet the need for additional staff and assets to serve the new membership group. (2) The Commissioner may approve an amendment to the bylaws of a credit union to change its field of membership whenever the Commissioner determines that continued operation of the credit union without the proposed amendment may result in liquidation or merger of such credit union. Added 2005, No. 16, § 1, eff. July 1, 2005; amended 2021, No. 105 (Adj. Sess.), § 328, eff. July 1, 2022.

8 V.S.A. § 31402 Membership application

31402. Membership application The governing body shall act upon applications for membership as prescribed in its bylaws. The governing body may delegate its authority to act on applications for membership as provided in subdivision 31302(2) of this title. A person denied membership by a membership officer or membership committee may appeal the denial to the governing body. Added 2005, No. 16, § 1, eff. July 1, 2005.

8 V.S.A. § 31403 Liability of members

31403. Liability of members The members of the credit union shall not be personally or individually liable for the acts, debts, liabilities, or obligations of the credit union or the payment of the credit union’s debts solely by virtue of their membership in the credit union. Added 2005, No. 16, § 1, eff. July 1, 2005.

8 V.S.A. § 31404 Membership termination

31404. Membership termination (a) Any member may withdraw from a credit union at any time upon giving notice of withdrawal as required by the bylaws. (b) Any member may be expelled by a majority vote of the members present at any regular membership meeting or a special membership meeting called to consider the matter at which a quorum is present, but only after the member has been given an opportunity to be heard. (c) The governing body may expel a member by a majority vote of a quorum of directors, pursuant to a written policy adopted by the governing body. Any member may be expelled if he or she violates the membership agreement, any policy or procedure adopted by the governing body, the bylaws of the credit union, or if the member is physically or verbally abusive to credit union members or staff. If such a policy is adopted, written notice of the policy as adopted and the effective date of such policy shall be mailed to each member of the credit union at the member’s current address appearing on the records of the credit union no fewer than 30 days prior to the effective date of such policy. In addition, each new member shall be provided written notice of any such policy prior to or upon applying for membership. Copies of such policies shall be available to members upon request. Any person expelled by the governing body shall have the right to request a hearing before the governing body to reconsider the expulsion. (d) A person whose membership has been terminated, whether by withdrawal or expulsion, shall have no further rights in the credit union, but is not released from any obligation owed to the credit union. (e) A member who has been expelled as provided in this section may not be readmitted to membership except upon approval by a majority vote of the governing body after application and proof that the applicant remains within the credit union’s field of membership; has adequately explained, addressed, or remedied the conditions leading to expulsion; and will abide by the terms and conditions of membership. Not more than one such application for readmission may be made within any 12-month calendar period. Added 2005, No. 16, § 1, eff. July 1, 2005.

8 V.S.A. § 31405 Suspension of services

31405. Suspension of services A credit union may suspend or limit the use of services to credit union members who have caused a loss to the credit union, who have violated the membership agreement or any policy adopted by the governing body, or who are physically or verbally abusive to credit union members or staff. Members with suspended or limited services may maintain a share account and may continue to vote at annual and special membership meetings. Added 2005, No. 16, § 1, eff. July 1, 2005.

8 V.S.A. § 31406 Meetings of members

31406. Meetings of members (a) The annual meeting and any special meetings of the members of the credit union shall be held in accordance with the bylaws. (b) On all questions and elections brought to the membership for a vote, each member shall have one vote, regardless of the member’s shareholdings. No member may vote by proxy, but a member may vote by early voter absentee ballot, mail ballot, or other method if the bylaws of the credit union so provide. (c) The bylaws may establish a minimum age, not greater than the age of majority as defined in 1 V.S.A. § 173, as a qualification of eligibility to vote at meetings of the members. A minor, as defined in 1 V.S.A. § 173, may not be a voting member of the governing body, the supervisory committee, or any other appointed or elected committee. (d) An organization having membership in the credit union may be represented and have its vote cast by an officer of the organization or its designated agent so authorized by the organization’s governing body as evidenced by a certified copy of such authorization provided to the credit union before the vote is cast. Added 2005, No. 16, § 1, eff. July 1, 2005.

8 V.S.A. § 31407 Special membership meetings

31407. Special membership meetings (a) The supervisory committee by a majority vote may call a special meeting of the members to consider any violation of this part, any other law or regulation applicable to the credit union, the credit union’s articles of incorporation or bylaws, or any practice of the credit union deemed unsafe or unauthorized by the supervisory committee. (b) The bylaws may also prescribe the manner in which a special meeting of the members may be called by the members or by the governing body, or both. Added 2005, No. 16, § 1, eff. July 1, 2005.

8 V.S.A. § 31408 Notice to members of annual and special meeting

31408. Notice to members of annual and special meeting (a) Notice of any annual or special meeting shall be given in accordance with the requirements of the Vermont Nonprofit Corporation Act, Title 11B, Vermont Statutes Annotated. Notice may be given electronically if the member has specifically requested or consented to electronic notification of meetings. (b) Notice of any special meeting shall state the purpose for which it is to be held, and no business other than that related to the purpose set forth in the notice shall be transacted at the special meeting. Added 2005, No. 16, § 1, eff. July 1, 2005.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/08/221Fetched: 10/21/2026