[Federal Register Volume 78, Number 172 (Thursday, September 5, 2013)]
[Notices]
[Pages 54683-54684]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-21493]


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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 published to obtain 
comments from the public. Section 701.36 of the NCUA Rules and 
Regulations regulates ownership of fixed assets by federal credit 
unions. This rule ensures that federal credit unions do not undertake 
undue risk related to fixed assets. Specifically, section 701.36 limits 
the aggregate amount of fixed assets, defines the duration for which 
property can be held before it must be occupied or disposed and, 
defines prohibited transactions. This information collection enables 
NCUA to evaluate waiver requests of these limitations.

DATES: Comments will be accepted until October 7, 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: Requests for additional information, a 
copy of the information collection

[[Page 54684]]

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 reinstating and amending the collection for 3133-0040. 12 
CFR 701.36 requires that a federal credit union with $1 million or more 
in assets obtain the approval of the NCUA before investing in fixed 
assets in excess of 5% of shares and retained earnings. This section 
also requires that a federal credit union prepare a definitive plan for 
full use of premises acquired for future expansion if it has not fully 
occupied the premises within one year of acquisition, and that a 
federal credit union that has not at least partially occupied such 
premises within three years, six years for unimproved real property, 
obtain NCUA approval to continue without partial occupation. This 
section also requires a federal credit union that does not dispose of 
abandoned property within 5 years of abandonment obtain NCUA approval 
to continue to hold the property. Federal credit unions must also 
obtain NCUA approval prior to investing in property from a prohibited 
party. The rule requires federal credit unions to submit documentation 
in support of any of the above requests. This information collection 
requirement is submitted for approval. The intent of the regulation and 
associated information collection is to prevent, or at least curb, 
excess investments in fixed assets and the related costs and expenses 
that may be beyond the financial capability of the credit union. 
Statistics indicate a correlation between high fixed asset investments 
and difficulty in achieving positive earnings. Further, the Federal 
Credit Union Act does not permit federal credit unions to own real 
estate for purposes other than for providing financial services to 
members. NCUA uses the information collection to evaluate the impact a 
waiver approval may have on the safety and soundness of a federal 
credit union. The increase in burden hours is associated with the 
termination of the Regulatory Flexibility Program. This program 
exempted federal credit unions in certain standing from the 5 percent 
limitation on fixed assets. The end of the program has resulted in an 
increase in waiver requests. 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: Federal Credit Union Ownership of Fixed Assets.
    OMB Number: 3133-0040.
    Form Number: None.
    Type of Review: Reinstatement, with change, of a previously 
approved collection.
    Description: The rule limits the aggregate amount of fixed assets, 
defines the duration for which property can be held before it must be 
occupied or disposed and, defines prohibited transactions. Credit 
unions may apply for a waiver to these limitations, which is the 
purpose of this data collection.
    Respondents: Federal credit unions.
    Estimated No. of Respondents/Recordkeepers: 193.
    Estimated Burden Hours per Response: 14.7 hours.
    Frequency of Response: On occasion.
    Estimated Total Annual Burden Hours: 2,830 hours.
    Estimated Total Annual Cost: $82,213.80

    By the National Credit Union Administration, Board August 29, 
2013.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2013-21493 Filed 9-4-13; 8:45 am]
BILLING CODE 7535-01-P