§9051 — Title 15 Commerce and Trade | U.S. Code

§9051 Temporary relief from troubled debt restructurings

Title 15 › Chapter CHAPTER 116— - CORONAVIRUS ECONOMIC STABILIZATION (CARES ACT) › Subchapter SUBCHAPTER III— - ECONOMIC STABILIZATION AND ASSISTANCE TO SEVERELY DISTRESSED SECTORS OF THE UNITED STATES ECONOMY › Part Part A— - Coronavirus Economic Stabilization › § 9051

Last updated Apr 6, 2026|Official source

Summary

Banks, credit unions, and insurance companies can choose to pause certain accounting rules for loans changed because of COVID‑19. If they do, they do not have to call those COVID‑related loan changes “troubled debt restructurings” or treat them as impaired for accounting. The pause applies to loan changes made during the applicable period, lasts for the term of the change, and only covers loans that were not more than 30 days past due as of December 31, 2019. It does not cover any credit harm that was not caused by COVID‑19. applicable period — March 1, 2020 through the earlier of January 1, 2022 or 60 days after the President’s March 13, 2020 COVID‑19 national emergency ends. appropriate Federal banking agency — the bank regulator named in law, and this includes the National Credit Union Administration. Regulators must defer to a lender’s choice to pause these rules. Lenders should keep records of how many loans are involved, and regulators may collect data for supervision.

Title 15, §9051

Commerce and Trade — Source: USLM XML via OLRC

(a)In this section:

(1)The term “applicable period” means the period beginning on March 1, 2020 and ending on the earlier of January 1, 2022, or the date that is 60 days after the date on which the national emergency concerning the novel coronavirus disease (COVID–19) outbreak declared by the President on March 13, 2020 under the National Emergencies Act (50 U.S.C. 1601 et seq.) terminates.

(2)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)(1)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)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)The appropriate Federal banking agency of the financial institution, including an insurance company, shall defer to the determination of the financial institution, including an insurance company, to make a suspension under this section.

(d)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.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The National Emergencies Act, referred to in subsec. (a)(1), is Pub. L. 94–412, Sept. 14, 1976, 90 Stat. 1255, which is classified principally to chapter 34 (§ 1601 et seq.) of Title 50, War and National Defense. For complete classification of this Act to the Code, see

Short Title

note set out under section 1601 of Title 50 and Tables.

Amendments

2020—Subsec. (a)(1). Pub. L. 116–260, § 541(2), substituted “

January 1, 2022” for “

December 31, 2020”. Subsec. (b)(1). Pub. L. 116–260, § 541(1), inserted “, including an insurance company,” after “financial institution” in introductory provisions. Subsec. (b)(1)(B). Pub. L. 116–260, § 541(3), inserted “under United States Generally Accepted Accounting Principles” after “accounting purposes”. Subsec. (c). Pub. L. 116–260, § 541(1), inserted “, including an insurance company,” after “financial institution” in two places. Subsec. (d)(1). Pub. L. 116–260, § 541(4), inserted “, including insurance companies,” after “financial institutions”.