Agency Information Collection Activities; Information Collection Renewal; Comment Request; Leasing, 3236-3237 [2016-00884]

Agencies

• Office of the Comptroller of the Currency
• DEPARTMENT OF THE TREASURY

[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 prainfo@occ.treas.gov. 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