§9052 — Title 15 Commerce and Trade | U.S. Code

Summary

Banks, bank holding companies, their affiliates, and credit unions do not have to follow the Financial Accounting Standards Board’s 2016 rule for measuring credit losses (the "current expected credit losses" or CECL method) from March 27, 2020 until the earlier of: the first day of their fiscal year that starts after the COVID‑19 national emergency declared on March 13, 2020 ends, or January 1, 2022. "Appropriate Federal banking agency" — the federal regulator named in 12 U.S.C. 1813 (includes the National Credit Union Administration). "Insured depository institution" — the banks and similar institutions named in 12 U.S.C. 1813 (includes credit unions).

Title 15, §9052

Commerce and Trade — Source: USLM XML via OLRC

(a)In this section:

(1)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.

(2)The term “insured depository institution”—

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

(B)includes a credit union.

(b)Notwithstanding any other provision of law, no insured depository institution, bank holding company, or any affiliate thereof shall be required to comply with the Financial Accounting Standards Board Accounting Standards Update No. 2016–13 (“Measurement of Credit Losses on Financial Instruments”), including the current expected credit losses methodology for estimating allowances for credit losses, during the period beginning on March 27, 2020, and ending on the earlier of—

(1)the first day of the fiscal year of the insured depository institution, bank holding company, or any affiliate thereof that begins 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; or

(2)January 1, 2022.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The National Emergencies Act, referred to in subsec. (b)(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. (b)(1). Pub. L. 116–260, § 540(a)(1)(A), inserted “the first day of the fiscal year of the insured depository institution, bank holding company, or any affiliate thereof that begins after” before “the date”. Subsec. (b)(2). Pub. L. 116–260, § 540(a)(1)(B), substituted “

January 1, 2022” for “

December 31, 2020”.

§9052 Optional Temporary Relief From Current Expected Credit Losses