A temporary final rule providing pandemic-related regulatory relief under rules on loan participations, eligible obligations, and occupancy requirements for certain properties has been extended until Dec. 31, 2022, by notation vote of the National Credit Union Administration (NCUA) Board.
The agency, in a release Tuesday, said the relief measures, originally approved in April 2020, are aimed at helping federally insured credit unions (FICUs) remain operational and able to address economic conditions caused by the COVID-19 pandemic. The three-member board approved the extension by unanimous vote, the agency said.
This action continues, temporarily:
- the increase in the maximum aggregate amount of loan participations that a FICU may purchase from a single originating lender to the greater of $5 million or 200% of the FICU’s net worth;
- the suspension of limitations on the eligible obligations that a federal credit union (FCU) may purchase and hold; and
- the tolling of the required timeframes for the occupancy or disposition of properties not being used for FCU business or that have been abandoned (given the physical distancing practices necessitated by COVID–19).
The temporary revisions were originally set to expire Dec. 31, 2020, but were later extended through this year end. “Due to the continued impact of COVID-19, the Board has decided it is necessary to further extend the effective period of these temporary modifications until December 31, 2022,” the agency stated in its notice for the Federal Register, which is set to publish Wednesday.
The provisions of this rulemaking generally take effect upon publication.