Federal Register: November 3, 2009 (Volume 74, Number 211)
DOCID: fr03no09-115 FR Doc E9-26439
DEPARTMENT OF THE TREASURY
Comptroller of the Currency
NOTICE: NOTICES
DOCID: fr03no09-115
DOCUMENT ACTION: Notice and request for comment.
SUBJECT CATEGORY:
Agency Information Collection Activities: Submission for OMB Review; Comment Request
DATES: Comments must be received by December 3, 2009.
DOCUMENT 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. An agency may not conduct or sponsor, and a 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 its information collection titled, ``Leasing.'' The OCC also gives notice that it has sent the information collection to OMB for review.
SUMMARY:
Agency Information Collection Activities; Proposals, Submissions, and Approvals
SUPPLEMENTAL INFORMATION
The OCC is proposing to extend OMB approval of the following information collection:
Title: Leasing (12 CFR Part 23).
OMB Control No.: 15570206.
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 extend the expiration date.
Information Collection Requirements Found in 12 CFR Part 23 12 CFR 23.4(c)
Under 12 CFR 23.4(c), national banks must liquidate or release
personal property that is no longer subject to lease (offlease
property) within five years from the date of the lease expiration. If a
bank wishes to extend the fiveyear holding period for up to an
additional five years, it must obtain OCC approval. Permitting a bank
to extend the holding period may result in cost savings to national
banks. It also provides flexibility for a bank that experiences unusual
or unforeseen conditions that would make it imprudent to dispose of the
offlease property before the expiration date of the fiveyear period.
Section 23.4(c) requires a bank seeking an extension to provide a
clearly convincing demonstration as to why an additional holding period
is necessary. In addition, a bank must value offlease property at the
lower of current fair market value or book value promptly after the
property comes offlease. These requirements enable the OCC to ensure
that a bank is not holding the property for speculative reasons and
that the value of the property is recorded in accordance with [[Page 56925]]
generally accepted accounting principles (GAAP).
Section 23.5
Under 12 CFR 23.5, leases are subject to the lending limits prescribed by 12 U.S.C. 84 or, if the lessee is an affiliate of the bank, to the restrictions on transactions with affiliates prescribed by 12 U.S.C. 371c and 371c1. See 12 CFR 23.6. 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 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 bank enters into both types of leases, its records must distinguish between the two types of leases. This information is required to demonstrate 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 the conduct of bank examinations and as an audit tool to verify bank compliance with law and regulations. In addition, the OCC uses national bank requests for permission to extend the holding period for offlease property to ensure national bank compliance with relevant law and regulations and to ensure bank safety and soundness.
Type of Review: Extension of a currently approved collection.
Affected Public: Individuals; Businesses or other forprofit.
Estimated Number of Respondents: 370.
Estimated Total Annual Responses: 370.
Frequency of Response: On occasion.
Estimated Total Annual Burden: 685.
The OCC issued a 60day Federal Register notice on August 14, 2009.
74 FR 41187. No comments were received. Comments continue to be invited on:
(a) Whether the collection of information is necessary for the
proper performance of the functions of the agency, including whether the information has practical utility;
(b) The accuracy of the agency's estimate of the burden of the collection of information;
(c) Ways to enhance the quality, utility, and clarity of the information to be collected;
(d) Ways to minimize the burden of the collection on respondents,
including through the use of automated collection techniques or other forms of information technology; and
(e) Estimates of capital or startup costs and costs of operation,
maintenance, and purchase of services to provide information.
Dated: October 27, 2009.
Michele Meyer,
Assistant Director, Legislative and Regulatory Activities Division. [FR Doc. E926439 Filed 11209; 8:45 am]
BILLING CODE 481033P
FOR FURTHER INFORMATION CONTACT
You can request additional information or a copy of the collection from Mary H. Gottlieb, OCC Clearance Officer, (202) 8745090, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency, 250 E Street, SW., Washington, DC 20219.