Code of the District of Columbia

Part D. Credit Union Membership.


§ 26–504.01. Membership.

(a) The board of directors of a District credit union shall determine the membership of the District credit union, which shall consist of persons who have been duly admitted as members.

(b) Each person otherwise eligible for membership to become or remain a member of a District credit union shall purchase and maintain a share, share draft, or share certificate account in the minimum amount required by the District credit union.

(c) A member may make an initial installment on the purchase of a membership share and complete the purchase by no more than 6 months from the payment of the first installment.

(d) If the balance in any of a member's accounts is less than the minimum balance required for a membership share, the member shall restore the balance to the minimum within 6 months of having fallen below the minimum balance, or the membership may be terminated pursuant to § 26-504.07.

(e) In the case of a joint account, each joint account holder may apply for membership, and, if the District credit union's bylaws so provide, each member may maintain the joint account only so long as the balance is at least equal to the membership share amount for each member. A joint account does not entitle the joint account holder to a vote.

(f) Each member is entitled to one vote, regardless of the number of shares held by that member.


(May 6, 2020, D.C. Law 23-86, § 401, 67 DCR 3476.)


§ 26–504.02. Organizations that qualify for District credit union membership.

Any incorporated or unincorporated organization, and the organization's employees, may be admitted to membership in a District credit union in the same manner and under the same conditions as individuals.


(May 6, 2020, D.C. Law 23-86, § 402, 67 DCR 3476.)


§ 26–504.03. Service to low-income consumers.

(a) A District credit union, including a District credit union in the process of incorporating under this subchapter, may submit an application to the Commissioner to be designated as a low-income credit union.

(b)(1) The Commissioner may approve an application for designation as a low-income credit union if the Commissioner determined that 50% or more of the members to be served by the District credit union:

(A) Reside within a recognizable geographic area primarily located in a low-income area; or

(B) Are qualified to receive benefits from any program designed to revitalize the local economy or assist the economically disadvantaged.

(2) For purposes of this subsection, the following shall be deemed to satisfy the requirements of this subsection:

(A) Natural persons enrolled as full-time or part-time students in a college, university, high school, or vocational school; and

(B) Members of the United States military on active duty and stationed overseas.

(c) The Commissioner shall develop the application specified in subsection (a) of this section by rule.

(d) The Commissioner shall approve or disapprove an application to be designated as a low-income credit union within 60 days of receiving a complete application; except, that where the application is submitted as part of the charter application, as described in § 26-502.02, the application to be designated as a low-income credit union shall be approved or disapproved in the same time period and manner prescribed in § 26-502.02(a)(3) and (b).

(e) In addition to the powers granted under this part, a low-income credit union may receive funds from non-members and supplemental capital from members and non-members.

(f)(1) The Commissioner shall regulate the offer and sale of supplemental capital. Regulations promulgated by the Commissioner shall address issues of safety and soundness, including the maturity of the supplemental capital, terms of sale, terms of capital, total amount of supplemental capital that may be outstanding at one time, redemption, and eligibility of the investors. In addition, supplemental capital:

(A) Shall be established as an uninsured supplemental capital or other form of non-share account;

(B) May not be insured by the National Credit Union Share Insurance Fund ("NCUSIF") or any other governmental or private entity; and

(C) May not be pledged or provided by the accountholder as a security on a loan or other obligation with the low-income credit union or any other party.

(2) A supplemental capital holder's claim against a low-income credit union shall be subordinate to all other claims against the low-income credit union, including those of shareholder's creditors, the NCUSIF, and an approved insurer.

(g) The supplemental capital authorized in this section shall not limit the authority of the Commissioner to approve other forms of equity capital.


(May 6, 2020, D.C. Law 23-86, § 403, 67 DCR 3476.)


§ 26–504.04. School service facilities.

(a) For the purposes of this section, the term:

(1) "School" means any accredited educational institution.

(2) "Student" means an individual enrolled in a school.

(3) "Student service facility" means a District credit union facility that provides in-school financial services and offers financial education to students.

(b) A District credit union may, upon agreement with a school's governing body, open and maintain a student service facility.


(May 6, 2020, D.C. Law 23-86, § 404, 67 DCR 3476.)


§ 26–504.05. Retention of membership.

Unless the District credit union's bylaws state otherwise, a person who has become a member of a District credit union in accordance with this subchapter may remain a member of that District credit union until that person chooses to withdraw from the membership of the District credit union, or is terminated under § 26-504.07.


(May 6, 2020, D.C. Law 23-86, § 405, 67 DCR 3476.)


§ 26–504.06. Liability of members.

The members of a District credit union shall not be personally or individually liable for the payment of the District credit union's debts solely by virtue of their membership in the District credit union.


(May 6, 2020, D.C. Law 23-86, § 406, 67 DCR 3476.)


§ 26–504.07. Termination of membership.

(a)(1) For the purposes of this section, the term "cause" includes a loss to the District credit union, a violation of the membership agreement or any policy or procedure adopted by the board, or inappropriate behavior such as physical or verbal abuse of a District credit union member or staff.

(2) All members shall be given written notice of all policies and procedures that have been adopted by the board.

(b) The board of directors may expel a member for cause by a majority vote of a quorum of the board of directors, pursuant to a written policy adopted by the board. A person expelled by the board shall have the right to request a hearing before the board to reconsider the expulsion.

(c) Consistent with § 26-504.01(d), a District credit union may terminate the membership of any member who withdraws his or her shares to less than one par share.

(d) A person whose membership has been terminated, whether by withdrawal or expulsion, shall have no further rights in the District credit union but is not released from any obligation owed to the District credit union.

(e) A person who has been expelled as provided by this subchapter may not be readmitted to membership except upon approval by a majority vote of the board after application and proof that the expelled person remains within the District 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. Only one application for readmission may be submitted within a 12-month calendar period.


(May 6, 2020, D.C. Law 23-86, § 407, 67 DCR 3476.)


§ 26–504.08. Suspension of services.

A District credit union may, for cause, as defined in § 26-504.07, suspend certain services to a District credit union member under a policy adopted by the District credit union's board of directors. Members whose service is suspended may maintain a share account and continue to vote at annual and special meetings.


(May 6, 2020, D.C. Law 23-86, § 408, 67 DCR 3476.)


§ 26–504.09. Meetings of members.

(a) The annual meeting, and any special meetings, of the members of the District credit union shall be held in accordance with the District credit union's bylaws.

(b) There shall be no voting by proxy, except on the election of the board of directors, proposals for merger, or proposals for voluntary dissolution. All voting on the election of directors shall be by ballot, but when there is no contest, written ballots need not be cast. A member may vote by absentee ballot, mail ballot, or other method if the bylaws so provide.

(c) A member who is less than 18 years of age may not vote or hold office in the District credit union.

(d) An organization having membership in a District credit union may be represented and have its vote cast by an officer of the organization or a designated agent authorized by the organization's governing body. A copy of the authorization shall be provided to the District credit union before a vote is cast by a designated agent of the organization.


(May 6, 2020, D.C. Law 23-86, § 409, 67 DCR 3476.)


§ 26–504.10. Special membership meetings.

A District credit union's bylaws may prescribe the manner in which a special meeting of the members may be called by the members or the board of directors, or both.


(May 6, 2020, D.C. Law 23-86, § 410, 67 DCR 3476.)