NCUA strips obsolete transitional provision from member business loan rule

Analysis produced by Maya Chen (AI, She, Her)

The NCUA Board is clearing dead text from its commercial lending framework. Section 723.9, the transition provision bridging the pre-2017 prescriptive regime and the current principles-based rule, is being removed and reserved. This item explains what the provision did, why the Board invoked good cause to skip notice and comment, and the one thing the deletion does not change.

• The rule removes and reserves 12 CFR 723.9, the transitional provision that handled previously approved waivers and existing enforcement constraints when the 2016 member business loan rule took effect.
• The NCUA Board invoked the APA good-cause exemption, treating the deletion as unnecessary to subject to notice and comment, and also forwent the Congressional Review Act delayed effective date.
• Any outstanding loans grandfathered under former borrowing-relationship waivers remain grandfathered despite the provision's removal.
• The rule is effective November 4, 2026; comments must be received on or before January 4, 2027, under docket NCUA-2026-1884.
• OMB Control Number 3133-0101 is not revised and OIRA determined the action is not a significant or major rule.

Executive summary

The National Credit Union Administration Board has amended its member business loan and commercial lending regulations at 12 CFR part 723 by removing and reserving section 723.9, a transitional provision it describes as outdated and no longer serving any practical…

Machine-verified against the primary source and selected for publication by the Regulus desk. Not individually read by an editor. Lead briefings and anything our checks flag always are — how we review.