15 U.S.C. § 9052: Optional temporary relief…

Summary

Banks, bank holding companies, insured depository institutions (including credit unions), and their affiliates do not have to use the Financial Accounting Standards Board’s 2016 rule on measuring credit losses (the current expected credit losses, or CECL, method) starting March 27, 2020. That relief lasts until the earlier of the first day of their fiscal year that begins after the national emergency about COVID–19 declared on March 13, 2020 ends, or January 1, 2022. Appropriate Federal banking agency — the federal agency that supervises banks (see 12 U.S.C. 1813), and it includes the National Credit Union Administration. Insured depository institution — a bank or credit union with federal deposit insurance (see 12 U.S.C. 1813).

Title 15, §9052

Commerce and Trade, Source: USLM XML via OLRC

(a)Definitions

In this section: (1) Appropriate Federal banking agency

(2)Insured depository institution

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)Temporary relief from CECL standards

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)

(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