1. (a) No member of a public benefit or mutual benefit corporation may be expelled or suspended, and no membership or memberships in such corporations may be terminated or suspended except pursuant to a procedure that is fair and reasonable and is carried out in good faith.

2. (b) A procedure is fair and reasonable when either:

   1. (1) the articles or bylaws set forth a procedure that provides:

      1. (i) not less than fifteen days prior written notice of the expulsion, suspension, or termination and the reasons therefore; and
      2. (ii) an opportunity for the member to be heard, orally or in writing, not less than five days before the effective date of the expulsion, suspension, or termination by a person or persons authorized to decide that the proposed expulsion, termination, or suspension not take place; or
   2. (2) it is fair and reasonable taking into consideration all of the relevant facts and circumstances.
3. (c) Any written notice given by mail must be given by first class or certified mail sent to the last address of the member shown on the corporation's records.
4. (d) A proceeding challenging an expulsion, suspension, or termination, including a proceeding in which defective notice is alleged, must be commenced within one year after the effective date of the expulsion, suspension, or termination.
5. (e) A member who has been expelled or suspended may be liable to the corporation for dues, assessments, or fees as a result of obligations incurred or commitments made before expulsion or suspension.

HISTORY: 1994 Act No. 384, Section 1.