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NCUA RIN: 3133-AF43 Publication ID: Spring 2023 
Title: Subordinated Debt 

At its September 2022 meeting, the NCUA Board (Board) issued a notice of proposed rulemaking (proposed rule or proposal) to amend the Subordinated Debt rule (the Current Rule or Subordinated Debt rule), which the Board finalized in December 2020 with an effective date of January 1, 2022. The proposal would make two changes related to the maturity of Subordinated Debt Notes (Notes) and Grandfathered Secondary Capital (GSC). Specifically, the proposal would replace the maximum maturity of Notes with a requirement that any credit union seeking to issue Notes with maturities longer than 20 years to demonstrate how such instruments would continue to be considered debt.” The proposed rule would also extend the Regulatory Capital treatment of GSC to the later of 30 years from the date of issuance or January 1, 2052. The proposed extension would align the Regulatory Capital treatment of GSC with the maximum permissible maturity for 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. This proposed change would benefit eligible low-income credit unions (LICUs) that are either participating in the U.S. Department of the Treasury's (Treasury) Emergency Capital Investment Program (ECIP) or other programs administered by the U.S. Government. This change would also cohere the requirements in the Current Rule related to maturities and Regulatory Capital treatment of Notes and the Regulatory Capital treatment of GSC, while continuing to ensure that credit unions are operating within their statutory authority. The Board is moving toward a final rule.

Agency: National Credit Union Administration(NCUA)  Priority: Substantive, Nonsignificant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: Undetermined  Unfunded Mandates: No 
CFR Citation: 12 CFR 702.401 to 702.414   
Legal Authority: 12 U.S.C. 1752(5)    12 U.S.C. 1755 to 1759    12 U.S.C. 1761a    12 U.S.C. 1761b    12 U.S.C. 1766 to 1767    12 U.S.C. 1782    12 U.S.C. 1784 to 1789   
Legal Deadline:  None
Action Date FR Cite
NPRM  10/05/2022  87 FR 60326   
NPRM Comment Period End  12/05/2022 
Final Action  06/00/2023 
Regulatory Flexibility Analysis Required: Undetermined  Government Levels Affected: Undetermined 
Small Entities Affected: No  Federalism: Undetermined 
Included in the Regulatory Plan: No 
RIN Information URL:  
RIN Data Printed in the FR: No 
Agency Contact:
Justin Michael Anderson
Senior Staff Attorney
National Credit Union Administration
1775 Duke Street,
Alexandria, VA 22314
Phone:703 518-6556
Fax:703 518-6569