Regulatory Alerts2011-04-13 | I-11-02DCU Interpretive Letter I-11-02: Reinstatement Under Once a Member Always a Member Principle
The Washington Department of Financial Institutions Division of Credit Unions clarifies that the "once a member, always a member" principle does not permit reinstating individuals who have terminated membership and no longer meet field of membership requirements. This principle only allows existing members to retain accounts after leaving the field of membership, provided the credit union's bylaws explicitly include the provision. An exception exists for reinstatement if the account closure was solely due to an administrative error and the principle was in place at the time of closure.
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