§ 54-109.19.  Removal of officers.

(a) If the Administrator finds that an officer, director, committee member, or employee of any credit union doing business under Articles 14A to 15A of this Chapter is deceitful, incompetent, grossly negligent, or reckless in the management of the affairs of the credit union, has been convicted of a felony, has been convicted of a misdemeanor involving fraud or dishonesty, has breached the trust of the members, or has persistently violated the laws of this State or the orders issued or rules adopted by the Administrator or the Commission, the Administrator may take one or both of the following actions:

(1) Remove the director, officer, committee member, or employee from office.

(2) Prohibit the director, officer, committee member, or employee from participating in the conduct of the affairs of a credit union or credit union service organization.

(b) A notice of removal of a director, officer, committee member or employee from office shall contain a statement of the alleged facts constituting the grounds for it and information on how the removed party may appeal the removal to the Commission, including contact information to initiate an appeal. The removal is effective immediately upon service of the notice of removal.

(c) A director, officer, committee member, or employee served written notice of removal has the right to a hearing before the Commission and shall request a hearing within 30 days of the service of the notice of removal.

(d) The hearing shall be fixed for a date no later than 30 days after service of the notice for request for hearing unless a later date is set by the Commission at the request of the removed party and for good cause shown. If the removed party does not seek a hearing within the 30-day time frame, the removed party is deemed to have consented to the removal and the removal is deemed final.

(e) Upon a request for hearing, or upon scheduling a discretionary hearing on its own initiative, the Commission shall review the facts of the case and hear from the Administrator and the removed party. The Commission shall determine whether the preponderance of the evidence supports removal. Upon completion of the hearing, the Commission shall issue an order that does one of the following:

(1) Overturns the removal and reinstates the removed party.

(2) Upholds the removal in full.

(3) Modifies the removal into a suspension of a defined period. The order remains effective and enforceable except to the extent that it is stayed, modified, terminated, or set aside by a later action of the Commission or a reviewing court.  (1979, c. 197, s. 1; 2026-31, s. 11(b).)