Eliminating the six-month waiting period for new members to receive a loan is one of several “enhancements” for the lending arm of the federal credit union regulator that was approved by the agency’s board Monday.
In a notation vote, the National Credit Union Administration (NCUA) Board unanimously approved an interim final rule that gives its Central Liquidity Facility (CLF) additional abilities to serve as “the liquidity backstop to the nation’s credit union system,” the agency said in a release.
The board’s actions were taken to implement legislation enacted into law March 27 under the Coronavirus Aid, Relief and Economic Security Act (CARES Act).
Eliminating the six-month waiting period was one of four actions approved by the board. The others included:
- Making temporary amendments to the waiting period for a credit union to terminate its membership;
- Easing collateral requirements on some assets; and
- Allowing, temporarily, for an agent member to borrow for its own liquidity needs.