BRIEFLY: NCUA LICU grants available; NY legislation on LIBOR signed into law

(April 9, 2021) Approximately $1.5 million in awards to support digital services and cybersecurity, mentoring of small minority depository institution (MDI) credit unions, and service to underserved communities will be available to low-income-designated credit unions during 2021, NCUA said this week. The awards are made available through the Community Development Revolving Loan Fund (CDRLF); applications are accepted from federally insured credit unions that have the agency’s “low-income” designation. Non-federally insured, state-chartered credit unions may also apply; these institutions will have to complete additional application forms and agree to be examined by the NCUA to receive the funds, the agency said … New York has adopted a law creating clarity for the issue of legacy LIBOR-based contractsthat mature after mid-2023 and do not have effective fallbacks. Most LIBOR-based contracts expire before June 2023 (and the use of the reference rate is generally prohibited after the end of this year). However, there are some legacy contracts that are set to continue past the mid-year 2023 deadline – and nearly all of those, according to the Federal Reserve Bank of New York’s Alterative Reference Rate Committee (ARRC) are written under by New York law. The new measure requires the legacy contracts to adopt an alternative rate (such as the ARRC’s Secured Overnight Financing Rate (SOFR)) – or face the contracts being declared void.

LINKS:
Community Development Revolving Loan Fund Access for Credit Unions (Federal Register)

ARRC Endorses Decision to Sign New York State LIBOR Legislation into Law