The ride-share conundrum: An exception to an exception

Greetings, compliance folks! I recently had the pleasure of enjoying a road trip from Northern Virginia down to sunny Orlando, Florida – my wife, our two kids and I piled into our car and drove over 800 miles to visit some relatives and then spend several days at Disney World. While waking up early every day and spending all day pushing a double-stroller around an amusement park was not necessarily “relaxing,” it was a fun trip and we made a lot of great memories.

In today’s blog we’ll be taking a different kind of road trip – into the nuances of Part 723 of the NCUA regulations and how the definitions apply to vehicles purchased for ride-sharing purposes.

Many Americans – perhaps even a member of your credit union – have decided they can earn some income by using their vehicles for a ride-share gig, such as driving for Uber or Lyft. So, what if a credit union member decides to apply for a loan from the credit union to purchase a vehicle that they will use in their ride-sharing endeavors? Well, NCUA’s commercial loan and member business loan regulations could apply.

Section 723.2 of the NCUA regulations defines “commercial loan” to mean:


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