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Bill Would Exclude Business Loans to Vets from MBL Cap "Credit News 24"

Legislation (H.R. 3866) was introduced on September 28 to amend the Federal Credit Union Act by excluding extensions of credit made to veterans from the definition of a member business loan.

This bill would exclude these loans from the aggregate member business loan cap of 12.25 percent of assets.

The legislation was introduced by Rep. Vicente Gonzalez (D-TX) and cosponsored by Rep. Paul Cook (R-CA).

However, this bill represents a fundamental departure from other extensions of credit that are excluded from the definition of a member business loan (MBL).

The extensions of credit that are currently excluded from the definition of a MBL pose minimal risk to the National Credit Union Share Insurance Fund, as these loans are fully secured by shares or 1-to-4 primary residence, are fully insured or guaranteed by a governmental agency, or are less than or equal to $50,000.

Read the bill.
Title : Bill Would Exclude Business Loans to Vets from MBL Cap "Credit News 24"
link : Bill Would Exclude Business Loans to Vets from MBL Cap "Credit News 24"