15 USC 9051 - Temporary relief from troubled debt restructurings

U.S Code last checked for updates: Nov 22, 2024

§ 9051.

Temporary relief from troubled debt restructurings

(a)

Definitions

In this section:

(1)

Applicable period

(2)

Appropriate federal banking agency

The term “appropriate Federal banking agency”—

(A)

has the meaning given the term in section 1813 of title 12; and

(B)

includes the National Credit Union Administration.

(b)

Suspension

(1)

In general

During the applicable period, a financial institution, including an insurance company, may elect to—

(A)

suspend the requirements under United States generally accepted accounting principles for loan modifications related to the coronavirus disease 2019 (COVID–19) pandemic that would otherwise be categorized as a troubled debt restructuring; and

(B)

suspend any determination of a loan modified as a result of the effects of the coronavirus disease 2019 (COVID–19) pandemic as being a troubled debt restructuring, including impairment for accounting purposes under United States Generally Accepted Accounting Principles.

(2)

Applicability

Any suspension under paragraph (1)—

(A)

shall be applicable for the term of the loan modification, but solely with respect to any modification, including a forbearance arrangement, an interest rate modification, a repayment plan, and any other similar arrangement that defers or delays the payment of principal or interest, that occurs during the applicable period for a loan that was not more than 30 days past due as of December 31, 2019; and

(B)

shall not apply to any adverse impact on the credit of a borrower that is not related to the coronavirus disease 2019 (COVID–19) pandemic.

(c)

Deference

(d)

Records

For modified loans for which suspensions under subsection (a) apply—

(1)

financial institutions, including insurance companies, should continue to maintain records of the volume of loans involved; and

(2)

the appropriate Federal banking agencies may collect data about such loans for supervisory purposes.

(Pub. L. 116–136, div. A, title IV, § 4013, Mar. 27, 2020, 134 Stat. 480; Pub. L. 116–260, div. N, title V, § 541, Dec. 27, 2020, 134 Stat. 2090.)

cite as: 15 USC 9051