[Federal Register Volume 78, Number 189 (Monday, September 30, 2013)]
[Notices]
[Page 59976]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-23806]
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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 not from any new
requirements. It is a reinstatement of a prior collection related to
NCUA's leasing rule. The rule requires a federal credit union engaged
in leasing to obtain or have on file financial documentation
demonstrating that the guarantor of an estimated residual value can
meet the guarantee. This information collection is being published to
obtain comments from the public.
DATES: Comments will be accepted until October 30, 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 and reinstating the collection for 3133-0151 for
NCUA's leasing regulation. 12 CFR part 714. In a leasing situation, the
NCUA requires the financially responsible party to guarantee the excess
when the residual value of a lease will exceed 25% of the original cost
of the leased property. 12 CFR 714.5. The guarantor may be the
manufacturer or an insurance company.
The federal credit union must obtain and have on file financial
documentation demonstrating that the guarantor has the resources to
meet the guarantee. If a manufacturer is involved, the federal credit
union must review financial statements for the period that would
establish a reasonable financial trend. If an insurance company is
involved, it must have a major company rating of at least a B+. The
federal credit union will use the information as part of the risk
assessment process to analyze and evaluate the financial capabilities
and resources of a party that guarantees the residual value used in a
leasing arrangement.
There are currently 35 federal credit unions offering leases. Most
leases are offered with residual payments of less than 25% of the
original leased property value. Therefore, there are a limited number
of leases requiring a guarantee. This is estimated to be 5 transactions
per year for federal credit unions offering leases. The hourly burden
per transaction is approximately 2 hours. Completing the financial
review requires a combination of clerical and officer time which is
estimated to be a blended hourly rate of $60. Therefore, the estimated
annual hourly burden for federal credit unions offering leases is 350
hours, at an hourly cost of $60 resulting in an estimated annual
financial burden of $21,000. The burden is minimal and offset by the
additional benefit of mitigating and reducing the potential for losses
to the credit union.
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: Leasing--Statistical Documentation Required for a Guarantor
of a Residual Value, 12 CFR Part 714.
OMB Number: 3133-0151.
Form Number: None.
Type of Review: Reinstatement, with change, of a previously
approved collection.
Description: Part 714 of NCUA's Rules and Regulations directs
federal credit unions to evaluate whether a guarantor of a residual
value has the financial resources to meet the guarantee.
Respondents: All federal credit unions.
Estimated No. of Respondents/Recordkeepers: 35.
Estimated Burden Hours Per Response: 2 hours
Estimated Frequency of Response: 5 annually for each respondent/
recordkeeper.
Estimated Total Annual Burden Hours: 350.
Estimated Total Annual Cost: $21,000.
By the National Credit Union Administration Board on September
25, 2013.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2013-23806 Filed 9-27-13; 8:45 am]
BILLING CODE 7535-01-P