[Federal Register Volume 74, Number 211 (Tuesday, November 3, 2009)]
[Notices]
[Pages 56924-56925]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-26439]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Submission for OMB 
Review; Comment Request

AGENCY: Office of the Comptroller of the Currency, 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. 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.

DATES: Comments must be received by December 3, 2009.

ADDRESSES: You should direct your comments to:
    Communications Division, Office of the Comptroller of the Currency, 
Public Information Room, Mailstop 2-3, Attention: 1557-0206, 250 E 
Street, SW., Washington, DC 20219. In addition, comments may be sent by 
fax to (202) 874-5274, or by electronic mail to 
[email protected]. You can inspect and photocopy the comments 
at the OCC, 250 E 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) 874-4700. Upon arrival, 
visitors will be required to present valid government-issued photo 
identification and to submit to security screening in order to inspect 
and photocopy comments.
    Additionally, you should send a copy of your comments to OCC Desk 
Officer, 1557-0206, by mail to U.S. Office of Management and Budget, 
725 17th Street, NW., 10235, Washington, DC 20503, or by fax 
to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: You can request additional information 
or a copy of the collection from Mary H. Gottlieb, OCC Clearance 
Officer, (202) 874-5090, Legislative and Regulatory Activities 
Division, Office of the Comptroller of the Currency, 250 E Street, SW., 
Washington, DC 20219.

SUPPLEMENTARY INFORMATION: 
    The OCC is proposing to extend OMB approval of the following 
information collection:
    Title: Leasing (12 CFR Part 23).
    OMB Control No.: 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 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 re-lease 
personal property that is no longer subject to lease (off-lease 
property) within five years from the date of the lease expiration. If a 
bank wishes to extend the five-year 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 
off-lease property before the expiration date of the five-year 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 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 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 371c-1. 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 off-lease 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 for-profit.
    Estimated Number of Respondents: 370.
    Estimated Total Annual Responses: 370.
    Frequency of Response: On occasion.
    Estimated Total Annual Burden: 685.
    The OCC issued a 60-day 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 start-up 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. E9-26439 Filed 11-2-09; 8:45 am]
BILLING CODE 4810-33-P