Business Loan AmendmentsProposed

March 28, 2003, 1:00 a.m. EST 1 Min Read

ALEXANDRIA, Va. - (03/28/03) -- The NCUA Board issued severalproposed reforms to its member business loan (MBL) rules aimed atexpanding business lending among credit unions. The proposals,issued for a 60-day comment period, include several measures toease the congressionally mandated 12.25% (of assets) cap on MBLs,including exempting acquired loan participation interests from thecap, excluding MBLs to CUSOs from the cap, and the application ofoutstanding balances, as opposed to original loan amounts, to thecap. The proposals would also allow CUSOs to originate MBLs for thefirst time. The measure would also lower the requirement thatborrowers for construction and development loans hod a 35% equitystake in the project, to a 25% stake. The proposals would alsoallow credit unions to make 100% loan-to-value vehicle loans forMBLs.

For reprint and licensing requests for this article, click here.

MORE FROM AMERICAN BANKER

Politics and policy

OCC shutters small Texas bank due to suspected fraud

The Santa Anna National Bank in Central Texas is the second bank to fail this year.

By Catherine Leffert

June 27
Politics and policy

Regulators ease bank customer identification standards

New order lets banks use third-party data for customer ID, reducing paperwork for firms, but the idea has divided some in the industry.

By Ebrima Santos Sanneh

June 27
Stress tests

Banks cruise through Fed stress tests, earning capital break

The largest U.S. banks took less of a capital hit under the Federal Reserve's hypothetical stress scenario than they did last year, but averaging the two sets of results could impact next year's regulatory requirements.

By Kyle Campbell

June 27
Politics and policy

Bank CEOs keep calm as end of tariff pause approaches

Time is running out for the 90-day pause on most of President Trump's tariffs. But at least two bank CEOs are confident there won't be a summer sequel to "Liberation Day."

By Nathan Place

June 27
Cryptocurrency

Court denies Ripple's request to reduce $125 million penalty

The company sought to pay far less than a New York court had imposed as a result of the lawsuit the SEC brought against it. In a twist, the new SEC leadership argued on the company's side against the prior administration's position.

By Penny Crosman

June 27
Regulation and compliance

GOP drops 'revenge tax' after Bessent announces agreement

Republicans pulled a $52B foreign bank tax after Bessent says he struck a global pact, easing industry fears.

By Ebrima Santos Sanneh

June 27