[Federal Register Volume 80, Number 119 (Monday, June 22, 2015)]
[Notices]
[Pages 35737-35739]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15297]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Submission for OMB Review; Subordinated Debt

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury.

ACTION: Notice and request for comment.

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[[Page 35738]]

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 (PRA).
    In accordance with the requirements of the PRA, the OCC may not 
conduct or sponsor, and the 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 renewal of its information 
collection titled, ``Subordinated Debt.'' The OCC also is giving notice 
that it has sent the collection to OMB for review.

DATES: Comments must be submitted on or before July 22, 2015.

ADDRESSES: Because paper mail in the Washington, DC area and at the OCC 
is subject to delay, commenters are encouraged to submit comments by 
email, if possible. Comments may be sent to: Legislative and Regulatory 
Activities Division, Office of the Comptroller of the Currency, 
Attention: 1557-0320, 400 7th Street SW., Suite 3E-218, Mail Stop 9W-
11, Washington, DC 20219. In addition, comments may be sent by fax to 
(571) 465-4326 or by electronic mail to [email protected]. You may 
personally inspect and photocopy comments at the OCC, 400 7th 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) 649-6700. Upon arrival, visitors will be required to 
present valid government-issued photo identification and submit to 
security screening in order to inspect and photocopy comments.
    All comments received, including attachments and other supporting 
materials, are part of the public record and subject to public 
disclosure. Do not include any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-0320, U.S. Office of Management and Budget, 725 17th 
Street NW., #10235, Washington, DC 20503, or by email to: 
[email protected].

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer, 
(202) 649-5490, for persons who are deaf or hard of hearing, TTY, (202) 
649-5597, Legislative and Regulatory Activities Division, Office of the 
Comptroller of the Currency, 400 7th Street SW., Suite 3E-218, Mail 
Stop 9W-11, Washington, DC 20219.

SUPPLEMENTARY INFORMATION: OMB granted the OCC a six-month approval for 
the information collection requirements contained in the interim final 
rule entitled ``Subordinated Debt Issued by a National Bank'' (December 
2014 Interim Final Rule).\1\ The OCC obtained this approval under 
existing OMB Control No. 1557-0320, which contained the information 
collection requirements in the interim final rule entitled ``Basel III 
Conforming Amendments Related to Cross-References, Subordinated Debt 
and Limits Based on Regulatory Capital'' (February 2014 Interim Final 
Rule).\2\ The OCC proposes to extend OMB approval of the entire 
information collection for the standard three year period.
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    \1\ 79 FR 75417 (December 18, 2014).
    \2\ 79 FR 11300 (February 28, 2014).
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    Title: Subordinated Debt.
    OMB Control No.: 1557-0320.
    Frequency of Response: On occasion.
    Affected Public: Business or other for-profit.
    Burden Estimates:
     Prepayment of Subordinated Debt in Form of Call Option: 184 
respondents; 1.30 burden hours per respondent; 239 total burden hours.
     Authority to Limit Distributions: 42 respondents; 0.5 hours per 
respondent; 21 total burden hours.
     Total Burden: 260 hours.
    Description: The OCC amended its rules governing subordinated debt 
twice in 2014. The first set of revisions, contained in the February 
2014 Interim Final Rule, amended the rules applicable to both national 
banks and Federal savings associations (12 CFR 5.47 and 163.81, 
respectively). The second revisions, contained in the December 2014 
Interim Final Rule, amended only the rules applicable to national 
banks.
    The February 2014 Interim Final Rule revised the requirements of 12 
CFR 5.47 applicable to national banks. Specifically, those revisions 
require that all national banks must receive prior OCC approval in 
order to prepay subordinated debt that is included in tier 2 capital 
and certain national banks must receive prior OCC approval to prepay 
subordinated debt that is not included in tier 2 capital. If the 
prepayment is in the form of a call option and the subordinated debt is 
included in tier 2 capital, a national bank must submit the information 
required for general prepayment requests under 12 CFR 5.47(g)(1)(ii)(A) 
\3\ and also must comply with 12 CFR 5.47(g)(1)(ii)(B)(2),\4\ which 
requires a national bank to submit either: (1) A statement explaining 
why the bank believes that following the proposed prepayment the bank 
would continue to hold an amount of capital commensurate with its risk 
or (2) a description of the replacement capital instrument that meets 
the criteria for tier 1 or tier 2 capital under 12 CFR 3.20, including 
the amount of such instrument and the time frame for issuance.
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    \3\ Appeared as Sec.  5.47(n)(1)(ii)(B) in the February 2014 
Interim Final Rule and subsequently redesignated as Sec.  
5.47(g)(1)(ii)(B).
    \4\ Appeared as Sec.  5.47(n)(1)(ii)(A) in the February 2014 
Interim Final Rule and subsequently redesignated as Sec.  
5.47(g)(1)(ii)(A).
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    The February 2014 Interim Final Rule also revised the requirements 
of 12 CFR 163.81 \5\ applicable to Federal savings associations. 
Specifically, those revisions require a Federal savings association to 
obtain prior OCC approval to prepay subordinated debt securities or 
mandatorily redeemable preferred stock (covered securities) included in 
tier 2 capital. In addition, if the prepayment is in the form of a call 
option, a Federal savings association must submit the information 
required for general prepayment requests under 12 CFR 163.81(j)(2)(i) 
and also comply with 12 CFR 163.81(j)(2)(ii)(A), which requires a 
Federal savings association to submit either: (1) A statement 
explaining why the Federal savings association believes that following 
the proposed prepayment the Federal savings association would continue 
to hold an amount of capital commensurate with its risk or (2) a 
description of the replacement capital instrument that meets the 
criteria for tier 1 or tier 2 capital under 12 CFR 3.20, including the 
amount of such instrument and the time frame for issuance.
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    \5\ The OCC renumbered this section as new Sec.  5.56 in its 
final rule entitled ``Integration of National Bank and Federal 
Savings Association Regulations: Licensing Rules,'' 80 FR 28346 (May 
18, 2015).
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    The December 2014 Interim Final Rule revised 12 CFR 5.47 to add a 
disclosure requirement in 12 CFR 5.47(d)(3)(ii)(C). A national bank 
must describe in the subordinated debt note the OCC's authority under 
12 CFR 3.11 to limit distributions, including interest payments on any 
tier 2 capital instrument, if the national bank has full discretion to 
permanently or temporarily suspend such payments without triggering an 
event of default.
    The OCC issued a 60-day Federal Register notice on April 14, 2015,

[[Page 35739]]

regarding the collection (80 FR 20074). No comments were received 
regarding the information collection. One comment was received 
regarding subordinated debt guidelines and rulemakings issued 
separately by the OCC. The comment will be considered with regard to 
those issuances. Comments continue to be invited on:
    (a) Whether the collections of information are necessary for the 
proper performance of the OCC's functions, including whether the 
information has practical utility;
    (b) The accuracy of the OCC's estimates of the burden of the 
information collections, including the validity of the methodology and 
assumptions used;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected; and
    (d) Ways to minimize the burden of information collections on 
respondents, including through the use of automated collection 
techniques or other forms of information technology.

    Dated: June 17, 2015.
Mary H. Gottlieb,
Regulatory Specialist, Legislative and Regulatory Activities Division.
[FR Doc. 2015-15297 Filed 6-19-15; 8:45 am]
BILLING CODE 4810-33-P