Interagency Supervisory Guidance Specifically Addressing Junior Lien Loans and Lines of Credit

​12-01 / January 2012
Interagency Supervisory Guidance Specifically Addressing Junior Lien Loans and Lines of Credit
Subject
Accounting

The Accounting Bulletin transmits interagency supervisory guidance specifically addressing  junior lien loans and lines of credit; however, the guidance contains principles that apply to estimating the ALLL for all types of loans. Institutions are reminded to follow appropriate risk management principles in managing junior lien loans and lines of credit. This supervisory guidance applies to all credit unions supervised by the National Credit Union Administration and insured by the National Credit Union Share Insurance Fund.