View Rule

The NCUA Board (Board) is considering proposing to amend the Subordinated Debt rule, which the Board finalized in December 2020 with an effective date of January 1, 2022.  This proposal would amend the definition of Grandfathered Secondary Capital to include any secondary capital issued to the United States Government or one of its subdivisions (U.S. Government), under an application approved before January 1, 2022, irrespective of the date of issuance.  The proposed change will benefit low-income credit unions (LICUs) that are either participating in the Treasury’s Emergency Capital Investment Program (ECIP) or other programs administered by the U.S. Government, and have encountered delays in such programs funding secondary capital investments.  This proposal would also provide that the expiration of regulatory capital treatment for these issuances is the later of 20 years from the date of issuance or January 1, 2042.