A club, which has an unpaid balance in excess of US$20 per member or US$1,000 per club, whichever is less, outstanding past 120 days will be suspended, including the suspension of the club’s charter, and all the rights, privileges, and obligations of the Lions club. In the event the club does not acquire good standing on or before the 28thday of the month following suspension, the club’s charter will be automatically cancelled.

Suspended clubs can hold meetings to discuss the future of the club and to identify actions to take to regain an active status, as well as make payments to clear the existing outstanding balance, or request a payment plan. However, the clubs cannot conduct service and fund-raising activities, participate in district functions and seminars, endorse or nominate a candidate, submit the MMR, sponsor new clubs.

The district officers can avoid unnecessary charter cancellations by encouraging suspended clubs either to pay the outstanding balance or negotiating a payment plan with the Finance Division at International Headquarters.