There are plenty of form contracts used by credit unions in loan and other settings, many of which can be found online. A quick search for agreements used by three different credit unions revealed the following differentiated "force majeure" language:

Force Majeure: If either party is unable to perform any of its obligations under the Agreement or to enjoy any of its benefits because of . . . actions or decrees of governmental bodies not the fault of the affected party . . . the Agreement shall be immediately suspended.
Force Majeure: Except for your obligations to pay the Credit Union hereunder, neither party will be liable to the other party for any failure or delay in performance caused by reasons beyond its reasonable control, including . . . orders or other governmental directive . . .
Force Majeure: The Credit Union shall not be responsible for liability, loss or damage of any kind resulting from any delay in the performance of or failure to perform its responsibilities hereunder due to causes beyond the Credit Union's reasonable control.

Now, let's turn attention to the COVID-19 pandemic, which will likely trigger the language of each version above, with potentially differing consequences:

In the first version, both the credit union and its contractual counterpart are explicitly authorized to suspend all performance as a result of the government shutdown, including any payment obligations to the credit union.
In the second version, there is generally no liability for any failure or delay of performance due to the government shutdown, although this would not extend to the counterpart's payment obligations (which would technically still need to be made in a timely manner).
In the third version, the language would not authorize any failure or delay of performance by the counterpart due to the government shutdown, including any payment obligations.

Keep in mind, with the second and third versions above, the counterpart may still be able point to other contractual provisions such as early termination and surrender – or equitable defenses such as impossibility of performance – to back out. In the context of commercial lease agreements, your particular state governor may have also implemented an executive order suspending any terminations or evictions on the basis of non-payment during the emergency period.

Instant Insights /

Beware the Contractual 'Boilerplate'

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