Proposed Agency Information Collection Activities; Comment Request, 12269-12272 [05-4664]

Download as PDF 12269 Federal Register / Vol. 70, No. 47 / Friday, March 11, 2005 / Notices may be obtained by calling the Treasury Bureau Clearance Officer listed. Comments regarding this information collection should be addressed to the OMB reviewer listed and to the Treasury Department Clearance Officer, Department of the Treasury, Room 11000, 1750 Pennsylvania Avenue, NW., Washington, DC 20220. DATES: Written comments should be received on or before April 11, 2005 to be assured of consideration. Internal Revenue Service (IRS) OMB Number: 1545–1626. Form Number: IRS Form 1065–b AND Schedule K–1. Type of Review: Extension. Title: Form 1065: U. S. Return of Income for Electing Large Partnerships; and Schedule K–1: Partner’s Share of Income (Loss) From an Electing Large Partnership. Description: Code sections 771–777 allow large partnerships to elect to file a simplified return which requires fewer items to be reported to partners. Respondents: Business or other forprofit. Estimated Number of Respondents/ Recordkeepers: 100. Estimated Burden Hours Per Respondent/Recordkeeper: Form Recordkeeping Learning about the law or the form Preparing the form Form 1065–B ................................................. Schedule D (Form 1065–B) ........................... Schedule K–1 (Form 1065) ............................ Schedule L (Form 1065) ................................ Schedule M–1 (Form 1065) ........................... Schedule M–2 (Form 1065–B) ....................... 52 hr., 24 min ............ 14 hr., 6 min .............. 9 hr., 34 min .............. 15 hr., 46 min ............ 3 hr., 21 min .............. 3 hr., 6 min ................ 23 hr., 51 min ............ 2 hr., 40 min .............. 7 hr., 43 min .............. 12 min ........................ 12 min ........................ 6 min .......................... 35 hr., 2 min .............. 3 hr., 1 min ................ 11 hr., 57 min ............ 27 min. 15 min. 9 min. Frequency of Response: Annually. Estimated Total Reporting/ Recordkeeping Burden: 487,225 hours. OMB Number: 1545–1915. Notice Number: Notice 2005–04. Type of Review: Extension. Title: Fuel Tax Guidance. Description: This notice provides guidance on certain excise tax Code provisions that were added or effected by the American Jobs Creation Act of 2004, Pub. L. 108–357. The information will be used by the IRS to verify that the proper amount of tax is reported, excluded, refunded, or credited. Respondents: Business or other forprofit, Not-for-profit institutions, Farms, Federal Government, State, Local or Tribal Government. Estimated Number of Respondents/ Recordkeepers: 20,263. Estimated Burden Hours Respondent/ Recordkeeper: 1 hour, 41 minutes. Estimated Total Reporting/ Recordkeeping Burden: 34,390 hours. Clearance Officer: Glenn P. Kirkland, Internal Revenue Service, Room 6516, 1111 Constitution Avenue, NW., Washington, DC 20224, (202) 622–3428. OMB Reviewer: Joseph F. Lackey, Jr., Office of Management and Budget, Room 10235, New Executive Office Building, Washington, DC 20503, (202) 395–7316. Lois K. Holland, Treasury PRA Clearance Officer. [FR Doc. 05–4823 Filed 3–10–05; 8:45 am] BILLING CODE 4830–01–P VerDate jul<14>2003 16:40 Mar 10, 2005 Jkt 205001 DEPARTMENT OF THE TREASURY Office of the Comptroller of the Currency FEDERAL RESERVE SYSTEM FEDERAL DEPOSIT INSURANCE CORPORATION Proposed Agency Information Collection Activities; Comment Request AGENCIES: Office of the Comptroller of the Currency (OCC), Treasury; Board of Governors of the Federal Reserve System (Board); and Federal Deposit Insurance Corporation (FDIC). ACTION: Joint notice and request for comment. SUMMARY: In accordance with the requirements of the Paperwork Reduction Act of 1995 (44 U.S.C. chapter 35), the OCC, the Board, and the FDIC (the ‘‘agencies’’) 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 Federal Financial Institutions Examination Council (FFIEC), of which the agencies are members, has approved the agencies’ publication for public comment of proposed revisions to the Consolidated Reports of Condition and Income (Call Report), which are currently approved collections of information. At the end of the comment period, the comments and recommendations received will be analyzed to determine the extent to which the FFIEC and the agencies PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 Copying, assembling, and sending the form to the IRS 2 hr., 40 min. 1 hr., 4 min. should modify the proposed revisions prior to giving final approval. The agencies will then submit the revisions to OMB for review and approval. DATES: Comments must be submitted on or before May 10, 2005. ADDRESSES: Interested parties are invited to submit written comments to any or all of the agencies. All comments, which should refer to the OMB control number(s), will be shared among the agencies. OCC: You may submit comments, identified by [Attention: 1557–0081], by any of the following methods: • E-mail: regs.comments@occ.treas.gov. Include [Attention: 1557–0081] in the subject line of the message. • Fax: (202) 874–4448. • Mail: Public Information Room, Office of the Comptroller of the Currency, 250 E Street, SW., Mailstop 1–5, Washington, DC 20219; Attention: 1557–0081. Public Inspection: You may inspect and photocopy comments at the Public Information Room. You can make an appointment to inspect the comments by calling (202) 874–5043. Board: You may submit comments, which should refer to ‘‘Consolidated Reports of Condition and Income, 7100– 0036,’’ by any of the following methods: • Agency Web Site: http:// www.federalreserve.gov. Follow the instructions for submitting comments on the http://www.federalreserve.gov/ generalinfo/foia/ProposedRegs.cfm. • Federal eRulemaking Portal: http:// www.regulations.gov. Follow the instructions for submitting comments. • E-mail: regs.comments@federalreserve.gov. E:\FR\FM\11MRN1.SGM 11MRN1 12270 Federal Register / Vol. 70, No. 47 / Friday, March 11, 2005 / Notices Include docket number in the subject line of the message. • FAX: 202–452–3819 or 202–452– 3102. • Mail: Jennifer J. Johnson, Secretary, Board of Governors of the Federal Reserve System, 20th Street and Constitution Avenue, NW., Washington, DC 20551. All public comments are available from the Board’s Web site at http:// www.federalreserve.gov/generalinfo/ foia/ProposedRegs.cfm as submitted, except as necessary for technical reasons. Accordingly, your comments will not be edited to remove any identifying or contact information. Public comments may also be viewed electronically or in paper in Room MP– 500 of the Board’s Martin Building (20th and C Streets, NW.) between 9 a.m. and 5 p.m. on weekdays. FDIC: You may submit comments, which should refer to ‘‘Consolidated Reports of Condition and Income, 3064– 0052,’’ by any of the following methods: • http://www.FDIC.gov/regulations/ laws/federal/propose.html. • E-mail: comments@FDIC.gov. Include ‘‘Consolidated Reports of Condition and Income, 3064–0052’’ in the subject line of the message. • Mail: Steven F. Hanft (202–898– 3907), Paperwork Clearance Officer, Room MB–3064, Federal Deposit Insurance Corporation, 550 17th Street, NW., Washington, DC 20429. • Hand Delivery: Comments may be hand delivered to the guard station at the rear of the 550 17th Street Building (located on F Street) on business days between 7 a.m. and 5 p.m. Public Inspection: You may inspect comments at the FDIC Public Information Center, Room 100, 801 17th Street, NW., between 9 a.m. and 4:30 p.m. on business days. A copy of the comments may also be submitted to the OMB desk officer for the agencies: Mark Menchik, Office of Information and Regulatory Affairs, Office of Management and Budget, New Executive Office Building, Room 10235, Washington, DC 20503, or electronic mail to mmenchik@omb.eop.gov. FOR FURTHER INFORMATION CONTACT: For further information about the revisions discussed in this notice, please contact any of the agency clearance officers whose names appear below. In addition, copies of Call Report forms can be obtained at the FFIEC’s Web site (http://www.ffiec.gov/ ffiec_report_forms.htm). OCC: Mary Gottlieb, OCC Clearance Officer, or Camille Dixon, (202) 874– 5090, Legislative and Regulatory Activities Division, Office of the VerDate jul<14>2003 16:40 Mar 10, 2005 Jkt 205001 Comptroller of the Currency, 250 E Street, SW., Washington, DC 20219. Board: Michelle E. Long, Clearance Officer, (202) 452–3829, Division of Research and Statistics, Board of Governors of the Federal Reserve System, 20th and C Streets, NW., Washington, DC 20551. Telecommunications Device for the Deaf (TDD) users may call (202) 263–4869. FDIC: Steven F. Hanft, Paperwork Clearance Officer, (202) 898–3907, Legal Division, Federal Deposit Insurance Corporation, 550 17th Street, NW., Washington, DC 20429. SUPPLEMENTARY INFORMATION: The agencies are proposing to revise the Call Report, which is currently an approved collection of information for each of the agencies. The effect of the proposed revisions to the reporting requirements will vary from institution to institution depending on the extent to which an institution acquires loans with evidence of deterioration of credit quality since origination, including acquisitions of such loans in business combinations accounted for using the purchase method. The agencies expect that the proposed revisions will generally apply only to the limited number of institutions that are involved in purchase business combinations or that engage in purchases of loans with credit quality problems as a business activity. Furthermore, the proposed revisions entail the reporting of information included in disclosures required under applicable generally accepted accounting principles. Therefore, the agencies estimate that the implementation of these reporting revisions will result in a nominal increase in the current reporting burden imposed on all banks by the Call Report. The following burden estimates include the proposed revisions. Report Title: Consolidated Reports of Condition and Income (Call Report). Form Number: FFIEC 031 (for banks with domestic and foreign offices) and FFIEC 041 (for banks with domestic offices only). Frequency of Response: Quarterly. Affected Public: Business or other forprofit. OCC: OMB Number: 1557–0081. Estimated Number of Respondents: 2,000 national banks. Estimated Time per Response: 46.43 burden hours. Estimated Total Annual Burden: 371,403 burden hours. Board: OMB Number: 7100–0036. Estimated Number of Respondents: 922 state member banks. PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 Estimated Time per Response: 52.38 burden hours. Estimated Total Annual Burden: 193,177 burden hours. FDIC: OMB Number: 3064–0052. Estimated Number of Respondents: 5,332 insured state nonmember banks. Estimated Time per Response: 37.08 burden hours. Estimated Total Annual Burden: 790,796 burden hours. The estimated time per response for the Call Report is an average, which varies by agency because of differences in the composition of the institutions under each agency’s supervision (e.g., size distribution of institutions, types of activities in which they are engaged, and existence of foreign offices). For the Call Report, the average reporting burden includes the effect on burden of the new Central Data Repository (CDR) system for processing Call Reports. The time per response for the Call Report is estimated to range from 15 to 600 hours, depending on an individual institution’s circumstances, before considering the effect of voluntary testing and global enrollment activities related to the CDR. The reporting burden for testing and enrollment activities for an individual institution is estimated to range from 16 to 69 hours, depending on the institution’s level of participation. General Description of Reports These information collections are mandatory: 12 U.S.C. 161 (for national banks), 12 U.S.C. 324 (for state member banks), and 12 U.S.C. 1817 (for insured state nonmember commercial and savings banks). Except for selected items, these information collections are not given confidential treatment. Abstract Institutions file Call Reports with the agencies each quarter for the agencies’ use in monitoring the condition, performance, and risk profile of individual institutions and the industry as a whole. In addition, Call Reports provide the most current statistical data available for evaluating institutions’ corporate applications such as mergers, for identifying areas of focus for both on-site and off-site examinations, and for monetary and other public policy purposes. Call Reports are also used to calculate all institutions’ deposit insurance and Financing Corporation assessments and national banks’ semiannual assessment fees. Current Action I. Overview This joint notice and request for comment addresses proposed revisions E:\FR\FM\11MRN1.SGM 11MRN1 Federal Register / Vol. 70, No. 47 / Friday, March 11, 2005 / Notices to the Call Report in response to Statement of Position 03–3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer (SOP 03–3), which was issued by the American Institute of Certified Public Accountants (AICPA) and is effective for loans acquired in fiscal years beginning after December 15, 2004. The agencies are proposing to add three items to the Call Report relating to loans within the scope of SOP 03–3. In addition, the agencies are revising the Call Report instructions to explain how the delinquency status of loans within the scope of SOP 03–3 should be determined for purposes of disclosing past due loans in the Call Report. The proposed revisions to the Call Report have been approved for publication by the FFIEC. The agencies intend to implement the proposed Call Report changes as of the June 30, 2005, report date. Nonetheless, as is customary for Call Report changes, if the information required to be reported in accordance with the proposed reporting revisions is not readily available, institutions are advised that they may report reasonable estimates of this information for the report date as of which the proposed changes first take effect. Type of Review: Revision of currently approved collections. II. Discussion of Proposed Revisions In December 2003, the AICPA issued SOP 03–3. In general, this Statement of Position applies to ‘‘purchased impaired loans,’’ i.e., loans that a bank has purchased, including those acquired in a purchase business combination, when there is evidence of deterioration of credit quality since the origination of the loan and it is probable, at the purchase date, that the bank will be unable to collect all contractually required payments receivable. The Statement of Position applies to loans acquired in fiscal years beginning after December 15, 2004, with early adoption permitted. Banks must follow SOP 03– 3 for Call Report purposes in accordance with its effective date based on their fiscal years. The Statement of Position does not apply to the loans that a bank has originated. SOP 03–3 also excludes certain acquired loans from its scope. Under SOP 03–3, a purchased impaired loan is initially recorded at its purchase price (in a purchase business combination, the present value of amounts to be received). The Statement of Position limits the yield that may be accreted on the loan (the accretable yield) to the excess of the bank’s estimate of the undiscounted principal, interest, and other cash flows expected VerDate jul<14>2003 16:40 Mar 10, 2005 Jkt 205001 at acquisition to be collected on the loan over the bank’s initial investment in the loan. The excess of contractually required cash flows over the cash flows expected to be collected on the loan, which is referred to as the nonaccretable difference, must not be recognized as an adjustment of yield, loss accrual, or valuation allowance. Neither the accretable yield nor the nonaccretable difference may be shown on the balance sheet. After acquisition, increases in the cash flows expected to be collected generally should be recognized prospectively as an adjustment of the loan’s yield over its remaining life. Decreases in cash flows expected to be collected should be recognized as an impairment through an addition to the loan loss allowance. The Statement of Position prohibits a bank from ‘‘carrying over’’ or creating valuation allowances (loan loss allowances) in the initial accounting for purchased impaired loans. This prohibition applies to the purchase of an individual impaired loan, a pool or group of impaired loans, and impaired loans acquired in a purchase business combination. As a consequence, SOP 03–3 provides that valuation allowances should reflect only those losses incurred after acquisition, that is, the present value of all cash flows expected at acquisition that ultimately are not to be received. Thus, because of the accounting model set forth in SOP 03– 3, banks will need to segregate their purchased impaired loans, if any, from the remainder of their loan portfolio for purposes of determining their overall allowance for loan and lease losses. According to the Basis for Conclusions of SOP 03–3, the AICPA’s Accounting Standards Executive Committee ‘‘believes that the accounting for acquired loans within the scope of this SOP is sufficiently different from the accounting for originated loans, particularly with respect to provisions for impairment, such that the amount of loans accounted for in accordance with this SOP should be disclosed separately in the notes to financial statements.’’ The agencies agree with this assessment and have considered the disclosures required by SOP 03–3. Therefore, to assist the agencies in understanding the relationship between the allowance for loan and lease losses and the carrying amount of the loan portfolios of those banks whose portfolios include purchased impaired loans, the agencies are proposing to add three items to the Call Report. All three of these items represent information included in the disclosures required by SOP 03–3. The agencies would add two Memorandum items to Schedule RC–C, part I, Loans PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 12271 and Leases: (1) The outstanding balance 1 and (2) the carrying amount (before any loan loss allowances) as of the report date of the purchased impaired loans held for investment 2 that are included in Schedule RC–C. In addition, the agencies would add a Memorandum item to Schedule RI–B, part II, Changes in Allowance for Loan and Lease Losses, in which banks would report the amount of loan loss allowances for purchased impaired loans held for investment that is included in the total amount of the allowance for loan and lease losses as of the report date. The agencies also plan to revise the instructions to Schedule RC–N, Past Due and Nonaccrual Loans, Leases, and Other Assets, to explain how purchased impaired loans should be reported in this schedule. SOP 03–3 does not prohibit placing loans on nonaccrual status and any nonaccrual purchased impaired loans should be reported accordingly in Schedule RC–N. For those purchased impaired loans that are not on nonaccrual status, banks should determine their delinquency status in accordance with the contractual repayment terms of the loans without regard to the purchase price of (initial investment in) these loans or the amount and timing of the cash flows expected at acquisition. III. Request for Comment Public comment is requested on all aspects of this joint notice. In addition, comments are invited on: (a) Whether the proposed revisions to the Call Report collections of information are necessary for the proper performance of the agencies’ functions, including whether the information has practical utility; (b) The accuracy of the agencies’ estimates of the burden of the information collections as they are proposed to be revised, including the validity of the methodology and assumptions used; 1 The outstanding balance is the undiscounted sum of all amounts, including amounts deemed principal, interest, fees, penalties, and other under the loan, owed to the bank at the report date, whether or not currently due and whether or not any such amounts have been charged off by the bank. The outstanding balance does not include amounts that would be accrued under the contract as interest, fees, penalties, and other after the report date. 2 Loans held for investment are those loans that the bank has the intent and ability to hold for the foreseeable future or until maturity or payoff. Thus, the outstanding balance and carrying amount of any purchased impaired loans that are held for sale would not be reported in these proposed Memorandum items. E:\FR\FM\11MRN1.SGM 11MRN1 12272 Federal Register / Vol. 70, No. 47 / Friday, March 11, 2005 / Notices (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. Comments submitted in response to this joint notice will be shared among the agencies and will be summarized or included in the agencies’ requests for OMB approval. All comments will become a matter of public record. Written comments should address the accuracy of the burden estimates and ways to minimize burden as well as other relevant aspects of the information collection request. Stuart E. Feldstein, Assistant Director, Legislative and Regulatory Activities Division, Office of the Comptroller of the Currency. Board of Governors of the Federal Reserve System, February 28, 2005. Jennifer J. Johnson, Secretary of the Board. Dated at Washington, DC, this 3rd day of March, 2005. Federal Deposit Insurance Corporation. Robert E. Feldman, Executive Secretary. [FR Doc. 05–4664 Filed 3–10–05; 8:45 am] BILLING CODE 4810–33–P; 6210–01–P; 6714–01–P DEPARTMENT OF THE TREASURY Internal Revenue Service Proposed Collection; Comment Request for Form 1028 Internal Revenue Service (IRS), Treasury. AGENCY: Notice and request for comments. ACTION: SUMMARY: The Department of the Treasury, 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 proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995, Pub. L. 104–13 (44 U.S.C. 3506(c)(2)(A)). Currently, the IRS is soliciting comments concerning Form 1028, Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code. VerDate jul<14>2003 16:40 Mar 10, 2005 Jkt 205001 Written comments should be received on or before May 10, 2005 to be assured of consideration. ADDRESSES: Direct all written comments to Glenn P. Kirkland, Internal Revenue Service, room 6516, 1111 Constitution Avenue NW., Washington, DC 20224. FOR FURTHER INFORMATION CONTACT: Requests for additional information or copies of the form and instructions should be directed to R. Joseph Durbala at the Internal Revenue Service, room 6516, 1111 Constitution Avenue NW., Washington, DC 20224, or at (202) 622– 3634, or through the Internet at RJoseph.Durbala@irs.gov. DATES: SUPPLEMENTARY INFORMATION: Title: Application for Recognition of Exemption Under Section 521 of the Internal Revenue Code. OMB Number: 1545–0058. Form Number: 1028. Abstract: Farmers’ cooperatives must file Form 1028 to apply for exemption from Federal income tax as being organizations described in Internal Revenue Code section 521. The information on Form 1028 provides the basis for determining whether the applicants are exempt. Current Actions: There are no changes being made to the form at this time. Type of Review: Extension of a currently approved collection. Affected Public: Business or other forprofit organizations. Estimated Number of Respondents: 50. Estimated Time Per Respondent: 50 hours, 54 minutes. Estimated Total Annual Burden Hours: 2,545. The following paragraph applies to all of the collections of information covered by this notice: An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103. Request for Comments: Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; PO 00000 Frm 00102 Fmt 4703 Sfmt 4703 (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 of information 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. Approved: March 7, 2005. Glenn P. Kirkland, IRS Reports Clearance Officer. [FR Doc. 05–4884 Filed 3–10–05; 8:45 am] BILLING CODE 4830–01–P DEPARTMENT OF THE TREASURY Internal Revenue Service Open Meeting of the Area 1 Taxpayer Advocacy Panel (Including the States of New York, Connecticut, Massachusetts, Rhode Island, New Hampshire, Vermont and Maine) Internal Revenue Service (IRS), Treasury. ACTION: Notice. AGENCY: SUMMARY: An open meeting of the Area 1 Taxpayer Advocacy Panel will be conducted (via teleconference). The Taxpayer Advocacy Panel is soliciting public comments, ideas and suggestions on improving customer service at the Internal Revenue Service. DATES: The meeting will be held Wednesday, April 6, 2005. FOR FURTHER INFORMATION CONTACT: Marisa Knispel at 1–888–912–1227 (tollfree), or 718–488–3557 (non toll-free). SUPPLEMENTARY INFORMATION: An open meeting of the Area 1 Taxpayer Advocacy Panel will be held Wednesday, April 6, 2005 from 3 p.m. ET to 4 p.m. ET via a telephone conference call. Individual comments will be limited to 5 minutes. If you would like to have the TAP consider a written statement, please call 1–888– 912–1227 or 718–488–3557, or write Marisa Knispel, TAP Office, 10 MetroTech Center, 625 Fulton Street, Brooklyn, NY 11201. Due to limited conference lines, notification of intent to participate in the telephone conference call meeting must be made with Marisa Knispel. Ms. Knispel can be reached at 1–888–912–1227 or 718– 488–3557, or post comments to the Web site: http://www.improveirs.org. The agenda will include various IRS issues. E:\FR\FM\11MRN1.SGM 11MRN1

Agencies

[Federal Register Volume 70, Number 47 (Friday, March 11, 2005)]
[Notices]
[Pages 12269-12272]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 05-4664]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

FEDERAL RESERVE SYSTEM

FEDERAL DEPOSIT INSURANCE CORPORATION


Proposed Agency Information Collection Activities; Comment 
Request

AGENCIES: Office of the Comptroller of the Currency (OCC), Treasury; 
Board of Governors of the Federal Reserve System (Board); and Federal 
Deposit Insurance Corporation (FDIC).

ACTION: Joint notice and request for comment.

-----------------------------------------------------------------------

SUMMARY: In accordance with the requirements of the Paperwork Reduction 
Act of 1995 (44 U.S.C. chapter 35), the OCC, the Board, and the FDIC 
(the ``agencies'') 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 Federal Financial Institutions Examination Council 
(FFIEC), of which the agencies are members, has approved the agencies' 
publication for public comment of proposed revisions to the 
Consolidated Reports of Condition and Income (Call Report), which are 
currently approved collections of information. At the end of the 
comment period, the comments and recommendations received will be 
analyzed to determine the extent to which the FFIEC and the agencies 
should modify the proposed revisions prior to giving final approval. 
The agencies will then submit the revisions to OMB for review and 
approval.

DATES: Comments must be submitted on or before May 10, 2005.

ADDRESSES: Interested parties are invited to submit written comments to 
any or all of the agencies. All comments, which should refer to the OMB 
control number(s), will be shared among the agencies.
    OCC: You may submit comments, identified by [Attention: 1557-0081], 
by any of the following methods:
     E-mail: regs.comments@occ.treas.gov. Include [Attention: 
1557-0081] in the subject line of the message.
     Fax: (202) 874-4448.
     Mail: Public Information Room, Office of the Comptroller 
of the Currency, 250 E Street, SW., Mailstop 1-5, Washington, DC 20219; 
Attention: 1557-0081.
    Public Inspection: You may inspect and photocopy comments at the 
Public Information Room. You can make an appointment to inspect the 
comments by calling (202) 874-5043.
    Board: You may submit comments, which should refer to 
``Consolidated Reports of Condition and Income, 7100-0036,'' by any of 
the following methods:
     Agency Web Site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments on the http://
www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     E-mail: regs.comments@federalreserve.gov.

[[Page 12270]]

Include docket number in the subject line of the message.
     FAX: 202-452-3819 or 202-452-3102.
     Mail: Jennifer J. Johnson, Secretary, Board of Governors 
of the Federal Reserve System, 20th Street and Constitution Avenue, 
NW., Washington, DC 20551.
    All public comments are available from the Board's Web site at 
http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as 
submitted, except as necessary for technical reasons. Accordingly, your 
comments will not be edited to remove any identifying or contact 
information. Public comments may also be viewed electronically or in 
paper in Room MP-500 of the Board's Martin Building (20th and C 
Streets, NW.) between 9 a.m. and 5 p.m. on weekdays.
    FDIC: You may submit comments, which should refer to ``Consolidated 
Reports of Condition and Income, 3064-0052,'' by any of the following 
methods:
     http://www.FDIC.gov/regulations/laws/federal/propose.html.
     E-mail: comments@FDIC.gov. Include ``Consolidated Reports 
of Condition and Income, 3064-0052'' in the subject line of the 
message.
     Mail: Steven F. Hanft (202-898-3907), Paperwork Clearance 
Officer, Room MB-3064, Federal Deposit Insurance Corporation, 550 17th 
Street, NW., Washington, DC 20429.
     Hand Delivery: Comments may be hand delivered to the guard 
station at the rear of the 550 17th Street Building (located on F 
Street) on business days between 7 a.m. and 5 p.m.
    Public Inspection: You may inspect comments at the FDIC Public 
Information Center, Room 100, 801 17th Street, NW., between 9 a.m. and 
4:30 p.m. on business days.
    A copy of the comments may also be submitted to the OMB desk 
officer for the agencies: Mark Menchik, Office of Information and 
Regulatory Affairs, Office of Management and Budget, New Executive 
Office Building, Room 10235, Washington, DC 20503, or electronic mail 
to mmenchik@omb.eop.gov.

FOR FURTHER INFORMATION CONTACT: For further information about the 
revisions discussed in this notice, please contact any of the agency 
clearance officers whose names appear below. In addition, copies of 
Call Report forms can be obtained at the FFIEC's Web site (http://
www.ffiec.gov/ffiec_report_forms.htm).
    OCC: Mary Gottlieb, OCC Clearance Officer, or Camille Dixon, (202) 
874-5090, Legislative and Regulatory Activities Division, Office of the 
Comptroller of the Currency, 250 E Street, SW., Washington, DC 20219.
    Board: Michelle E. Long, Clearance Officer, (202) 452-3829, 
Division of Research and Statistics, Board of Governors of the Federal 
Reserve System, 20th and C Streets, NW., Washington, DC 20551. 
Telecommunications Device for the Deaf (TDD) users may call (202) 263-
4869.
    FDIC: Steven F. Hanft, Paperwork Clearance Officer, (202) 898-3907, 
Legal Division, Federal Deposit Insurance Corporation, 550 17th Street, 
NW., Washington, DC 20429.

SUPPLEMENTARY INFORMATION: The agencies are proposing to revise the 
Call Report, which is currently an approved collection of information 
for each of the agencies.
    The effect of the proposed revisions to the reporting requirements 
will vary from institution to institution depending on the extent to 
which an institution acquires loans with evidence of deterioration of 
credit quality since origination, including acquisitions of such loans 
in business combinations accounted for using the purchase method. The 
agencies expect that the proposed revisions will generally apply only 
to the limited number of institutions that are involved in purchase 
business combinations or that engage in purchases of loans with credit 
quality problems as a business activity. Furthermore, the proposed 
revisions entail the reporting of information included in disclosures 
required under applicable generally accepted accounting principles. 
Therefore, the agencies estimate that the implementation of these 
reporting revisions will result in a nominal increase in the current 
reporting burden imposed on all banks by the Call Report. The following 
burden estimates include the proposed revisions.
    Report Title: Consolidated Reports of Condition and Income (Call 
Report).
    Form Number: FFIEC 031 (for banks with domestic and foreign 
offices) and FFIEC 041 (for banks with domestic offices only).
    Frequency of Response: Quarterly.
    Affected Public: Business or other for-profit.
    OCC:
    OMB Number: 1557-0081.
    Estimated Number of Respondents: 2,000 national banks.
    Estimated Time per Response: 46.43 burden hours.
    Estimated Total Annual Burden: 371,403 burden hours.
    Board:
    OMB Number: 7100-0036.
    Estimated Number of Respondents: 922 state member banks.
    Estimated Time per Response: 52.38 burden hours.
    Estimated Total Annual Burden: 193,177 burden hours.
    FDIC:
    OMB Number: 3064-0052.
    Estimated Number of Respondents: 5,332 insured state nonmember 
banks.
    Estimated Time per Response: 37.08 burden hours.
    Estimated Total Annual Burden: 790,796 burden hours.
    The estimated time per response for the Call Report is an average, 
which varies by agency because of differences in the composition of the 
institutions under each agency's supervision (e.g., size distribution 
of institutions, types of activities in which they are engaged, and 
existence of foreign offices). For the Call Report, the average 
reporting burden includes the effect on burden of the new Central Data 
Repository (CDR) system for processing Call Reports. The time per 
response for the Call Report is estimated to range from 15 to 600 
hours, depending on an individual institution's circumstances, before 
considering the effect of voluntary testing and global enrollment 
activities related to the CDR. The reporting burden for testing and 
enrollment activities for an individual institution is estimated to 
range from 16 to 69 hours, depending on the institution's level of 
participation.

General Description of Reports

    These information collections are mandatory: 12 U.S.C. 161 (for 
national banks), 12 U.S.C. 324 (for state member banks), and 12 U.S.C. 
1817 (for insured state nonmember commercial and savings banks). Except 
for selected items, these information collections are not given 
confidential treatment.

Abstract

    Institutions file Call Reports with the agencies each quarter for 
the agencies' use in monitoring the condition, performance, and risk 
profile of individual institutions and the industry as a whole. In 
addition, Call Reports provide the most current statistical data 
available for evaluating institutions' corporate applications such as 
mergers, for identifying areas of focus for both on-site and off-site 
examinations, and for monetary and other public policy purposes. Call 
Reports are also used to calculate all institutions' deposit insurance 
and Financing Corporation assessments and national banks' semiannual 
assessment fees.

Current Action

I. Overview

    This joint notice and request for comment addresses proposed 
revisions

[[Page 12271]]

to the Call Report in response to Statement of Position 03-3, 
Accounting for Certain Loans or Debt Securities Acquired in a Transfer 
(SOP 03-3), which was issued by the American Institute of Certified 
Public Accountants (AICPA) and is effective for loans acquired in 
fiscal years beginning after December 15, 2004. The agencies are 
proposing to add three items to the Call Report relating to loans 
within the scope of SOP 03-3. In addition, the agencies are revising 
the Call Report instructions to explain how the delinquency status of 
loans within the scope of SOP 03-3 should be determined for purposes of 
disclosing past due loans in the Call Report.
    The proposed revisions to the Call Report have been approved for 
publication by the FFIEC. The agencies intend to implement the proposed 
Call Report changes as of the June 30, 2005, report date. Nonetheless, 
as is customary for Call Report changes, if the information required to 
be reported in accordance with the proposed reporting revisions is not 
readily available, institutions are advised that they may report 
reasonable estimates of this information for the report date as of 
which the proposed changes first take effect.
    Type of Review: Revision of currently approved collections.

II. Discussion of Proposed Revisions

    In December 2003, the AICPA issued SOP 03-3. In general, this 
Statement of Position applies to ``purchased impaired loans,'' i.e., 
loans that a bank has purchased, including those acquired in a purchase 
business combination, when there is evidence of deterioration of credit 
quality since the origination of the loan and it is probable, at the 
purchase date, that the bank will be unable to collect all 
contractually required payments receivable. The Statement of Position 
applies to loans acquired in fiscal years beginning after December 15, 
2004, with early adoption permitted. Banks must follow SOP 03-3 for 
Call Report purposes in accordance with its effective date based on 
their fiscal years. The Statement of Position does not apply to the 
loans that a bank has originated. SOP 03-3 also excludes certain 
acquired loans from its scope.
    Under SOP 03-3, a purchased impaired loan is initially recorded at 
its purchase price (in a purchase business combination, the present 
value of amounts to be received). The Statement of Position limits the 
yield that may be accreted on the loan (the accretable yield) to the 
excess of the bank's estimate of the undiscounted principal, interest, 
and other cash flows expected at acquisition to be collected on the 
loan over the bank's initial investment in the loan. The excess of 
contractually required cash flows over the cash flows expected to be 
collected on the loan, which is referred to as the nonaccretable 
difference, must not be recognized as an adjustment of yield, loss 
accrual, or valuation allowance. Neither the accretable yield nor the 
nonaccretable difference may be shown on the balance sheet. After 
acquisition, increases in the cash flows expected to be collected 
generally should be recognized prospectively as an adjustment of the 
loan's yield over its remaining life. Decreases in cash flows expected 
to be collected should be recognized as an impairment through an 
addition to the loan loss allowance.
    The Statement of Position prohibits a bank from ``carrying over'' 
or creating valuation allowances (loan loss allowances) in the initial 
accounting for purchased impaired loans. This prohibition applies to 
the purchase of an individual impaired loan, a pool or group of 
impaired loans, and impaired loans acquired in a purchase business 
combination. As a consequence, SOP 03-3 provides that valuation 
allowances should reflect only those losses incurred after acquisition, 
that is, the present value of all cash flows expected at acquisition 
that ultimately are not to be received. Thus, because of the accounting 
model set forth in SOP 03-3, banks will need to segregate their 
purchased impaired loans, if any, from the remainder of their loan 
portfolio for purposes of determining their overall allowance for loan 
and lease losses.
    According to the Basis for Conclusions of SOP 03-3, the AICPA's 
Accounting Standards Executive Committee ``believes that the accounting 
for acquired loans within the scope of this SOP is sufficiently 
different from the accounting for originated loans, particularly with 
respect to provisions for impairment, such that the amount of loans 
accounted for in accordance with this SOP should be disclosed 
separately in the notes to financial statements.'' The agencies agree 
with this assessment and have considered the disclosures required by 
SOP 03-3. Therefore, to assist the agencies in understanding the 
relationship between the allowance for loan and lease losses and the 
carrying amount of the loan portfolios of those banks whose portfolios 
include purchased impaired loans, the agencies are proposing to add 
three items to the Call Report. All three of these items represent 
information included in the disclosures required by SOP 03-3. The 
agencies would add two Memorandum items to Schedule RC-C, part I, Loans 
and Leases: (1) The outstanding balance \1\ and (2) the carrying amount 
(before any loan loss allowances) as of the report date of the 
purchased impaired loans held for investment \2\ that are included in 
Schedule RC-C. In addition, the agencies would add a Memorandum item to 
Schedule RI-B, part II, Changes in Allowance for Loan and Lease Losses, 
in which banks would report the amount of loan loss allowances for 
purchased impaired loans held for investment that is included in the 
total amount of the allowance for loan and lease losses as of the 
report date.
---------------------------------------------------------------------------

    \1\ The outstanding balance is the undiscounted sum of all 
amounts, including amounts deemed principal, interest, fees, 
penalties, and other under the loan, owed to the bank at the report 
date, whether or not currently due and whether or not any such 
amounts have been charged off by the bank. The outstanding balance 
does not include amounts that would be accrued under the contract as 
interest, fees, penalties, and other after the report date.
    \2\ Loans held for investment are those loans that the bank has 
the intent and ability to hold for the foreseeable future or until 
maturity or payoff. Thus, the outstanding balance and carrying 
amount of any purchased impaired loans that are held for sale would 
not be reported in these proposed Memorandum items.
---------------------------------------------------------------------------

    The agencies also plan to revise the instructions to Schedule RC-N, 
Past Due and Nonaccrual Loans, Leases, and Other Assets, to explain how 
purchased impaired loans should be reported in this schedule. SOP 03-3 
does not prohibit placing loans on nonaccrual status and any nonaccrual 
purchased impaired loans should be reported accordingly in Schedule RC-
N. For those purchased impaired loans that are not on nonaccrual 
status, banks should determine their delinquency status in accordance 
with the contractual repayment terms of the loans without regard to the 
purchase price of (initial investment in) these loans or the amount and 
timing of the cash flows expected at acquisition.

III. Request for Comment

    Public comment is requested on all aspects of this joint notice. In 
addition, comments are invited on:
    (a) Whether the proposed revisions to the Call Report collections 
of information are necessary for the proper performance of the 
agencies' functions, including whether the information has practical 
utility;
    (b) The accuracy of the agencies' estimates of the burden of the 
information collections as they are proposed to be revised, including 
the validity of the methodology and assumptions used;

[[Page 12272]]

    (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.
    Comments submitted in response to this joint notice will be shared 
among the agencies and will be summarized or included in the agencies' 
requests for OMB approval. All comments will become a matter of public 
record. Written comments should address the accuracy of the burden 
estimates and ways to minimize burden as well as other relevant aspects 
of the information collection request.

Stuart E. Feldstein,
Assistant Director, Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency.
    Board of Governors of the Federal Reserve System, February 28, 
2005.
Jennifer J. Johnson,
Secretary of the Board.
    Dated at Washington, DC, this 3rd day of March, 2005.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 05-4664 Filed 3-10-05; 8:45 am]
BILLING CODE 4810-33-P; 6210-01-P; 6714-01-P