[Federal Register Volume 81, Number 12 (Wednesday, January 20, 2016)]
[Notices]
[Pages 3236-3237]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-00884]
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DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
Agency Information Collection Activities; Information Collection
Renewal; Comment Request; Leasing
AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.
ACTION: Notice and request for comment.
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SUMMARY: The OCC, as part of its continuing effort to reduce paperwork
and respondent burden, invites the general public and other Federal
agencies to take this opportunity to comment on a continuing
information collection, as required by the Paperwork Reduction Act of
1995 (PRA).
In accordance with the requirements of the PRA, the OCC may not
conduct or sponsor, and the respondent is not required to respond to,
an information collection unless it displays a currently valid Office
of Management and Budget (OMB) control number.
The OCC is soliciting comment concerning the renewal of its
information collection titled, ``Leasing.''
DATES: Comments must be received by March 21, 2016.
ADDRESSES: Because paper mail in the Washington, DC area and at the OCC
is subject to delay, commenters are encouraged to submit comments by
email, if possible. Comments may be sent to: Legislative and Regulatory
Activities Division, Office of the Comptroller of the Currency,
Attention: 1557-0206, 400 7th Street SW., Suite 3E-218, mail stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to
(571) 465-4326 or by electronic mail to [email protected]. You may
personally inspect and photocopy comments at the OCC, 400 7th Street
SW., Washington, DC 20219. For security reasons, the OCC requires that
visitors make an appointment to inspect comments. You may do so by
calling (202) 649-6700 or, for persons who are deaf or hard of hearing,
TTY, (202) 649-5597. Upon arrival, visitors will be required to present
valid government-issued photo identification and submit to security
screening in order to inspect and photocopy comments.
All comments received, including attachments and other supporting
materials, are part of the public record and subject to public
disclosure. Do not include any information in your comment or
supporting materials that you consider confidential or inappropriate
for public disclosure.
FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer,
(202) 649-5490 or, for persons who are deaf or hard of hearing, TTY,
(202) 649-5597, Legislative and Regulatory Activities Division, Office
of the Comptroller of the Currency, 400 7th Street SW., Washington, DC
20219.
SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), Federal
agencies must obtain approval from the OMB for each collection of
information they conduct or sponsor. ``Collection of information'' is
defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include Agency
requests or requirements that members of the public submit reports,
keep records, or provide information to a third party. Section
3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A)) requires Federal
agencies to provide a 60-day notice in the Federal Register concerning
each proposed collection of information, including each proposed
extension of an existing collection of information, before submitting
the collection to OMB for approval. To comply with this requirement,
the OCC is publishing notice of the collection of information set forth
in this document.
The OCC is proposing to extend OMB approval of the following
information collection:
Title: Leasing.
OMB Number: 1557-0206.
Description: This submission covers an existing regulation and
involves no change to the regulation or to the information collection
requirements. The OCC requests only that OMB approve its burden
estimates and extend the expiration date.
Under 12 CFR 23.4(c), national banks must liquidate or release
property that is no longer subject to lease (off-lease property) within
five years from the date of the lease expiration. If a national bank
wishes to extend the five-year holding period for up to an additional
five years, it must obtain OCC approval. Permitting a national bank to
extend the holding period may result in cost savings. It also may
provide flexibility for a national bank that experiences unusual or
unforeseen conditions that would make it imprudent to dispose of the
off-lease property prior to the expiration of the five-year holding
[[Page 3237]]
period. Section 23.4(c) requires a national bank seeking an extension
to provide a clearly convincing demonstration as to why any additional
holding period is necessary. In addition, a national bank must value
off-lease property at the lower of current fair market value or book
value promptly after the property comes off-lease. These requirements
enable the OCC to ensure that a national bank is not holding the
property for speculative reasons and that the value of the property is
recorded in accordance with generally accepted accounting principles
(GAAP).
Under 12 CFR 23.6, leases are subject to the lending limits
prescribed by 12 U.S.C. 84, as implemented by 12 CFR part 32, or, if
the lessee is an affiliate of the national bank, to the restrictions on
transactions with affiliates prescribed by 12 U.S.C. 371c and 371c-1.
Twelve U.S.C. 24 contains two separate provisions authorizing a
national bank to acquire personal property for purposes of lease
financing. Twelve U.S.C. 24(Seventh) authorizes leases of personal
property (Section 24(Seventh) Leases) if the lease is a conforming
lease as defined in 12 CFR 23.2(d)(2) and represents a noncancelable
obligation of the lessee (i.e., the lease serves as the functional
equivalent of a loan). See 12 CFR 23.20. A national bank also may
acquire personal property for purposes of lease financing under the
authority of 12 U.S.C. 24(Tenth) (CEBA Leases). Section 23.5 requires
that if a national bank enters into both types of leases, its records
must distinguish between the two types of leases. This information is
required to establish that the national bank is complying with the
limitations and requirements applicable to the two types of leases.
National banks use the information to ensure their compliance with
applicable Federal banking law and regulations and accounting
principles. The OCC uses the information in conducting examinations and
as an auditing tool to verify compliance with laws and regulations. In
addition, the OCC uses national bank requests for permission to extend
the holding period for off-lease property to ensure national bank
compliance with relevant laws and regulations and to ensure bank safety
and soundness.
Type of Review: Regular.
Affected Public: Individuals; Businesses or other for-profit.
Estimated Number of Respondents: 345.
Estimated Total Annual Responses: 345.
Frequency of Response: On occasion.
Estimated Total Annual Burden: 678.
Comments submitted in response to this notice will be summarized
and included in the submission to OMB. Comments are requested on:
(a) Whether the information collections are necessary for the
proper performance of the OCC's functions, including whether the
information has practical utility;
(b) The accuracy of the OCC's estimates of the burden of the
information collections, including the validity of the methodology and
assumptions used;
(c) Ways to enhance the quality, utility, and clarity of the
information to be collected;
(d) Ways to minimize the burden of information collections on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
(e) Estimates of capital or start up costs and costs of operation,
maintenance, and purchase of services to provide information.
Dated: January 13, 2016.
Mary H. Gottlieb,
Regulatory Specialist, Legislative and Regulatory Activities Division.
[FR Doc. 2016-00884 Filed 1-19-16; 8:45 am]
BILLING CODE 4810-33-P