Monday, January 3, 2022

The final subordinated debt rule now permits complex credit unions and newly chartered credit unions to issue subordinated debt to comply with risk-based capital requirements.

The rule permits low-income credit unions to issue debt instruments to qualifying natural persons, but does not change the ability of a LICU to include Subordinated Debt in its net worth in the same manner in which it currently includes secondary capital in its net worth.

Bulletin B-22-01 - Guidance on NCUA's Final Subordinated Debt Rule