[Federal Register Volume 78, Number 167 (Wednesday, August 28, 2013)]
[Notices]
[Pages 53161-53162]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20947]


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NATIONAL CREDIT UNION ADMINISTRATION


Agency Information Collection Activities: Submission to OMB for 
Reinstatement, Without 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. This information 
collection is published to obtain comments from the public. The 
information collection applies to credit unions that engage in member 
business lending and requires written loan policies that address the 
various aspects of the member business loan program. Credit unions 
desiring a waiver from appraisal requirements, aggregate construction 
and development loan, loan-to-value ratios, personal liability and 
guarantee requirements, unsecured lending limits to one borrower, 
aggregate unsecured lending limits, or outstanding loans to one 
borrower limits of NCUA's Rules and

[[Page 53162]]

Regulations, must submit certain information to NCUA for consideration. 
Finally, a credit union seeking regulatory approval to purchase certain 
business loans in addition to those, which are statutorily limited, 
must submit certain information to NCUA for consideration.

DATES: Comments will be accepted September 27, 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: [email protected].
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: Request 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/reinstating the collection for 3133-0101. Part 723 
implements provisions in the Federal Credit Union Act (Act) for 
business loans and addresses NCUA's safety and soundness concerns 
regarding this activity. Part 723 requires that credit unions that 
engage in business lending maintain written loan policies that address 
various aspects of the activity, including identification of the types 
of business loans the credit union will make, qualifications of loan 
officers, documentation requirements for creditworthiness of borrowers, 
collateral requirements, loan procedures, interest rates and 
maturities, and so forth. 12 CFR 723.6. Business lending is recognized 
as inherently riskier than consumer lending and requires particular 
expertise. Before promulgation of the member business loan regulation 
in the 1980s, business loans caused significant losses to the credit 
unions and the National Credit Union Share Insurance Fund (NCUSIF). 
Requiring federally-insured credit unions to develop specific business 
loan policies and procedures protects the safety and soundness of 
credit unions and the NCUSIF.
    Part 723 also permits credit unions to apply for a waiver from 
certain regulatory requirements. 12 CFR 723.10-11. Specifically, the 
rule permits waivers from the following requirements or limitations: 
appraisal requirements, aggregate construction and development loan 
limits, minimum borrower equity requirements for construction and 
development loans, loan-to-value ratios, personal liability and 
guarantee requirements, unsecured lending limits to one borrower, 
aggregate unsecured lending limits, and outstanding loans to one 
borrower limits. NCUA needs certain information from a credit union to 
consider the waiver request and evaluate the risks and impact of the 
waiver on the credit union and potential effect on the NCUSIF.
    Finally, part 723 permits a credit union to obtain regulatory 
approval so that it may purchase certain business purpose loans in 
addition to those which are statutorily limited. 12 CFR 723.16(b)(2). 
NCUA needs certain information from a credit union to evaluate its 
request so that NCUA may assess safety and soundness considerations and 
potential effect on the NCUSIF.
    NCUA examiners review the credit union policies during regulatory 
examinations. These reviews allow examiners to determine the 
appropriateness and risks of the programs they address for both the 
credit union and the NCUSIF. Written policies enable examiners to 
determine that the credit union is, in fact, following its own business 
planning in engaging member business lending. As part of the 
examination process, this review helps prevent losses to credit unions 
and the NCUSIF.
    For waiver requests, the information in the requests permits NCUA 
staff to make a reasonable determination of the appropriateness of the 
requests. For loan approval requests, the information in the requests 
permits NCUA staff to determine the appropriateness and risks of the 
loan purchases the credit union proposes for both the credit union and 
the NCUSIF.
    An increase in the reporting burden from the prior submission 
occurred due to an adjustment to the estimated responses based upon 
current credit union activity. While the number of respondents 
decreased, the estimated waiver activity increased resulting in an 
overall increase in annual response hours.
    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

    OMB Number: 3133-0101.
    Form Number: N/A.
    Type of Review: Reinstatement, without change.
    Title: 12 CFR parts 723.5--Develop Written Loan Policies--and 
723.11--Provide Waiver Requests.
    Description: The general purpose of the requirements imposed by the 
rule is to ensure that loans are made, documented, and accounted for 
properly and for the ultimate protection of the National Credit Union 
Share Insurance Fund. Respondents are federally insured credit unions 
who make business loans as defined in the regulation.
    Respondents: Federally Insured Credit Unions.
    Estimated No. of Respondents/Recordkeepers: 1,116.
    Estimated Burden Hours per Response: 4-17 hours.
    Frequency of Response: Recordkeeping, reporting and on occasion.
    Estimated Total Annual Burden Hours: 9,492 hours.
    Estimated Total Annual Cost: $0.

    By the National Credit Union Administration Board on August 22, 
2013.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2013-20947 Filed 8-27-13; 8:45 am]
BILLING CODE 7535-01-P