Removing Barriers Blog

Temporary MBL Rule Approved in North Carolina
Posted December 22, 2016 by CUNA Advocacy

After approval from state regulators, a Carolina Credit Union League-supported change that grants parity with NCUA’s Member Business Lending rules for state-chartered credit unions will become effective January 1, 2017. 

The League worked for many months with state officials and secured a “fast track” update to the state’s Member Business Lending rule to coincide with the new NCUA MBL rule that also becomes effective on January 1, 2017. 

The temporary rule permits state-chartered, federally-insured credit unions that engage in commercial and member business lending to adhere to federal regulations. In addition, credit unions that engage in these activities must notify the credit union regulator prior to initiating a commercial lending program. Credit unions whose assets are $250 million or below must submit their commercial lending policies to the regulatory 30 days prior to offering the commercial lending program.

The state MBL rule is “temporary” and will remain in effect until a permanent rule is adopted, which is expected to be a lengthier process.