April 22, 1998
Cheryl Ernst, Manager
Bridgeport Post Office Federal Credit Union
120 Middle Street
P.O. Box 349
Bridgeport, CT 06601-0349
You have asked for a legal opinion on the following three issues.
First, you ask whether, under the "once a member, always
a member" bylaw, immediate family members of a primary member
may join a federal credit union (FCU) if the primary member is
no longer in the field of membership, although still a member
of the FCU. The attached letter from Richard S. Schulman to Sue
Eckenrode, dated February 2, 1995, explains that, if a primary
member is no longer within the field of membership, a family member
would not be eligible to join.
Second, you ask whether it is permissible for an FCU to post the
names of members who have caused a loss to the FCU. Article XIX,
Section 2 of the Federal Credit Union Bylaws requires the officers,
directors and employees of an FCU to hold in confidence all member
transactions and all information respecting their personal affairs.
The posting of members' names who have caused the FCU a loss
would violate this provision of the Federal Credit Union Bylaws.
Finally, you ask whether an FCU may require proof of repairs prior
to releasing an insurance payment to the member. The National
Credit Union Administration has no regulations addressing this
issue and we suggest you have an attorney familiar with state
law review the insurance contract, as well as the FCU's contract
with the member. Your own legal counsel would be able to assist
the FCU in drafting a legally permissible policy.
Sincerely,
Sheila A. Albin
Associate General Counsel
GC/MFR:bhs
SSIC 3000
98-0404, Enclosure