Regulatory Call for Comment:
Amendments to NCUA’s MBL Rule

May 2, 2005

CUNA has issued a Comment Call regarding the proposed revisions to NCUA's member business loan (MBL) rule. The proposal would make the following changes:

It would clarify the minimum capital requirements a federally insured corporate credit union must meet in order to make unsecured MBLs to its members other than member credit unions and corporate credit union service organizations (corporate CUSOs). It would amend the definition of “construction or development loan” to include loans for renovating or developing property owned by a borrower for income-producing purposes. It would revise the phrase, “net worth” used in the MBL rule to be consistent with the definition of that phrase found in the Federal Credit Union Act and in NCUA’s prompt corrective action (PCA) regulation. In addition, NCUA is requesting comments on how to broaden the MBL rule to enable credit unions to participate more fully in additional government guaranteed loan programs, such as whether it would be better to expand the MBL rule to permit only specifically identified programs or to permit more favorable treatment for loans under all government guaranteed loan programs.

Please send your comments to CUNA by June 3, 2005. Click here for CUNA's comment call with additional information..