Agency Information Collection Activities: Submission to OMB for Reinstatement, With Change, of a Previously Approved Collection; Comment Request, 59976 [2013-23806]

Agencies

• National Credit Union Administration

[Federal Register Volume 78, Number 189 (Monday, September 30, 2013)]
[Notices]
[Page 59976]
From the Federal Register Online via the Government Printing 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: OCIOPRA@ncua.gov.
    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