The U.S. National Credit Union Administration (NCUA) has finalized rules making the existing regulatory treatment of Paycheck Protection Program (PPP) loans permanent and removing an unnecessary definition from its statutory lien rules. It is also seeking comments on removing an obsolete commercial lending transition provision as part of the 14th round of its Deregulation Project. The PPP rule preserves treatment in place since April 27, 2020, originally adopted during the COVID-19 pandemic to implement the Coronavirus Aid, Relief, and Economic Security Act. The statutory lien amendment removes a definition concerning exceptions under applicable law. Credit unions’ statutory lien authority and legal obligations remain unchanged, including their responsibility to identify and comply with applicable laws when exercising that authority. The commercial lending provision dates to the 2016 rule and addressed credit unions operating under certain waivers approved by NCUA or supervisory actions during the transition to a regulatory framework based on principles. The provision has served its purpose, and its removal would simplify the commercial lending regulation.
US National Credit Union Administration makes Paycheck Protection Program loan treatment permanent and removes statutory lien definition
The U.S. National Credit Union Administration has made permanent the regulatory treatment of Paycheck Protection Program loans in place since April 27, 2020, and deleted an unnecessary statutory lien definition without changing credit unions’ authority or legal obligations. It is also seeking comments on removing a commercial lending transition provision adopted in 2016 that has served its purpose.