[Federal Register Volume 78, Number 187 (Thursday, September 26, 2013)]
[Notices]
[Pages 59375-59376]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-23465]


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

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.

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

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. Part 712 of the NCUA Rules and Regulations 
implements authority in the Federal Credit Union Act relating to 
federal credit union (FCU) lending or investment activity with credit 
union service organizations (CUSOs). The rule addresses NCUA's safety 
and soundness concerns for activities conducted by CUSOs and imposes 
certain recordkeeping obligations on FCUs that have relations with or 
conduct operations through CUSOs. The rule also imposes regulatory 
limits on the ability of FCUs to recapitalize their CUSOs in certain 
circumstances. Although the CUSO rule generally only applies to FCUs, 
the rule extends to all federally insured credit unions the provisions 
ensuring that credit union regulators have access to books and records 
and that CUSOs are operated as separate legal entities; however, the 
rule also contains a procedure through which state regulators may seek 
an exemption from the access to records provisions for credit unions in 
their state. NCUA has no direct regulatory authority over CUSOs.

[[Page 59376]]


DATES: Comments will be accepted until October 28, 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 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 3133-0149.
    Requirements in the rule are:
    (i) The credit union must obtain a written agreement from the CUSO, 
before making a loan to or investment in the CUSO, that the CUSO will: 
follow generally accepted accounting principles; will prepare financial 
statements at least quarterly and obtain an annual opinion audit from a 
certified public accountant; and agree to provide access to its books 
and records to the NCUA;
    (ii) The credit union must obtain a written legal opinion 
confirming the CUSO is established in a legally sufficient way to limit 
the credit union's exposure to loss of its loans or investments in the 
CUSO;
    (iii) Any FCU that is less than adequately capitalized must seek 
NCUA approval before recapitalizing a CUSO that has become insolvent.
    These requirements enable NCUA to monitor an FCU's involvement with 
its CUSO for safety and soundness purposes and help to assure that 
CUSOs are properly established and maintained in accordance with 
applicable state law.
    The burden of this rule has decreased. The timeframe for credit 
unions to amend existing agreements with their CUSOs is over, thus 
eliminating the initial burden of the rule as approved in 2008.
    The information collection requirements now are one-time 
obligations that help NCUA assure the continued safety and soundness of 
the industry. The rule also requires certain less than adequately 
capitalized FCUs to obtain NCUA's prior approval before re-capitalizing 
an insolvent CUSO, helping minimize the risk of loss to the National 
Credit Union Share Insurance Fund.
    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: 12 CFR part 712, Credit Union Service Organizations.
    OMB Number: 3133-0149.
    Form Number: None.
    Type of Review: Reinstatement, with change, of a previously 
approved collection.
    Description: This rule helps ensure that relationships that credit 
unions have with credit union service organizations are adequately and 
properly documented.
    Respondents: Federal credit unions.
    Estimated No. of Respondents/Recordkeepers: 148 (133 written 
agreements plus 15 waivers).
    Estimated Burden Hours per Response: 2 hours total.
    Frequency of Response: On occasion.
    Estimated Total Annual Burden Hours: 562 hours.
    Estimated Total Annual Cost: 562 hours x $31.56/hr, or $17,737.

    By the National Credit Union Administration Board on September 
20, 2013.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2013-23465 Filed 9-25-13; 8:45 am]
BILLING CODE 7535-01-P