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Actions by members to enforce a secondary right - 17 Pa. Cons. Stat. § 715

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     § 715.  Actions by members to enforce a secondary right.
        (a)  General rule.--In any action brought to enforce a
     secondary right on the part of one or more members against any
     officer or director or former officer or director of a credit
     union because the corporation refuses to enforce rights which
     may properly be asserted by it, the plaintiff or plaintiffs must
     aver and it must be made to appear that the plaintiff or each
     plaintiff was a member of the corporation at the time of the
     transaction of which he complains or that his membership
     devolved upon him by operation of law from a person who was a
     member at that time.
        (b)  Security for costs.--In any such action instituted or
     maintained by a holder or holders of less than 5% of the
     outstanding share accounts of the credit union, the credit union
     in whose right the action is brought shall be entitled, at any
     stage of the proceedings, to require the plaintiff or plaintiffs
     to give security for the reasonable expenses, including attorney
     fees, which may be incurred by it in connection therewith and
     for which it may become liable pursuant to section 712(a)
     (relating to indemnification) (but only insofar as relates to
     mandatory indemnification in actions by or in the right of the
     corporation), to which security the corporation shall have
     recourse in such amount as the court having jurisdiction shall
     determine upon the termination of the action. The amount of the
     security may, from time to time, be increased or decreased in
     the discretion of the court having jurisdiction of the action
     upon showing that the security provided has or may become
     inadequate or excessive.

Last modified: November 27, 2007