[Federal Register Volume 78, Number 150 (Monday, August 5, 2013)]
[Notices]
[Pages 47425-47426]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-18743]
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NATIONAL CREDIT UNION ADMINISTRATION
Agency Information Collection Activities: Submission to OMB for
Reinstatement, With Change, of a Previously Approved Collection;
Comment Request
AGENCY: National Credit Union Administration (NCUA).
ACTION: Request for comment.
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SUMMARY: The NCUA intends to submit the following information
collection to the Office of Management and Budget (OMB) for review and
clearance under the Paperwork Reduction Act of 1995 (Pub. L. 104-13, 44
U.S.C. Chapter 35). This information collection is published to obtain
comments from the public. Part 712 of the National Credit Union
Administration's (NCUA) regulations implements authority in the Federal
Credit Union Act relating to federal credit union (FCU) lending or
investment activity with credit union service organizations (CUSOs).
The rule addresses NCUA's safety and soundness concerns for activities
conducted by CUSOs and imposes certain recordkeeping obligations on
FCUs that have relations with or conduct operations through CUSOs. The
rule also imposes regulatory limits on the ability of FCUs to
recapitalize their CUSOs in certain circumstances. Although the CUSO
rule generally only applies to federal credit unions (FCUs), the rule
extends to all federally insured credit unions the provisions ensuring
that credit union regulators have access to books and records and that
CUSOs are operated as separate legal entities; however, the rule also
contains a procedure through which state regulators may seek an
exemption from the access to records provisions for credit unions in
their state. NCUA has no direct regulatory authority over CUSOs.
DATES: Comments will be accepted until October 4, 2013.
ADDRESSES: Interested parties are invited to submit written comments to
the NCUA Contact and the OMB Reviewer listed below:
NCUA Contact: Tracy Crews, National Credit Union Administration,
1775 Duke Street, Alexandria, Virginia 22314-3428, Fax No. 703-837-
2861, Email: [email protected].
OMB Contact: Office of Management and Budget, ATTN: Desk Officer
for the National Credit Union Administration, Office of Information and
Regulatory Affairs, Washington, DC 20503.
FOR FURTHER INFORMATION CONTACT: Requests for additional information, a
copy of the information collection request, or a copy of submitted
comments should be directed to Tracy Crews at the National Credit Union
Administration, 1775 Duke Street, Alexandria, VA 22314-3428, or at
(703) 518-6444.
SUPPLEMENTARY INFORMATION:
I. Abstract and Request for Comments
NCUA is amending/reinstating the collection for 3133-0149.
Requirements in the rule are:
(i) The credit union must obtain a written agreement from the CUSO,
before making a loan to or investment in the CUSO, that the CUSO will:
Follow generally accepted accounting principles (GAAP); will prepare
financial statements at least quarterly and obtain an annual opinion
audit from a certified public accountant; and agree to provide access
to its books and records to the NCUA;
(ii) The credit union must obtain a written legal opinion
confirming the CUSO is established in a legally sufficient way to limit
the credit union's exposure to loss of its loans or investments in the
CUSO;
(iii) Any FCU that is less than adequately capitalized must seek
NCUA approval before recapitalizing a CUSO that has become insolvent.
These requirements enable NCUA to monitor an FCU's involvement with
its CUSO for safety and soundness purposes and help to assure that
CUSOs are properly established and maintained in accordance with
applicable state law.
The burden of this rule has decreased. The timeframe for credit
unions to amend existing agreements with their CUSOs is over, thus
eliminating the initial burden of the rule as approved in 2008.
The information collection requirements now are one-time
obligations that help NCUA assure the continued safety and soundness of
the industry. The rule also requires certain less than adequately
capitalized FCUs to obtain NCUA's prior approval before re-capitalizing
an insolvent CUSO, helping
[[Page 47426]]
minimize the risk of loss to the National Credit Union Share Insurance
Fund (NCUSIF).
The NCUA requests that you send your comments on this collection to
the location listed in the addresses section. Your comments should
address: (a) The necessity of the information collection for the proper
performance of NCUA, including whether the information will have
practical utility; (b) the accuracy of our estimate of the burden
(hours and cost) of the collection of information, including the
validity of the methodology and assumptions used; (c) ways we could
enhance the quality, utility, and clarity of the information to be
collected; and (d) ways we could minimize the burden of the collection
of the information on the respondents such as through the use of
automated collection techniques or other forms of information
technology. It is NCUA's policy to make all comments available to the
public for review.
II. Data
Title: 12 CFR Part 712, Credit Union Service Organizations (CUSOs).
OMB Number: 3133-0149.
Form Number: None.
Type of Review: Reinstatement, with change, of a previously
approved collection.
Description: This rule helps ensure that relationships that credit
unions have with credit union service organizations are adequately and
properly documented.
Respondents: Federal credit unions.
Estimated No. of Respondents/Recordkeepers: 148 (133 written
agreements plus 15 waivers).
Estimated Burden Hours per Response: 2 hours total.
Frequency of Response: On occasion.
Estimated Total Annual Burden Hours: 562 hours.
Estimated Total Annual Cost: 562 hours x $31.56/hr, or $17,737.
By the National Credit Union Administration Board on July 30,
2013.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2013-18743 Filed 8-2-13; 8:45 am]
BILLING CODE 7535-01-P