[Federal Register Volume 83, Number 33 (Friday, February 16, 2018)]
[Notices]
[Pages 7104-7106]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-03253]


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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; Investment Securities

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

[[Page 7105]]

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 respondents are 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 the renewal of its 
information collection titled, ``Investment Securities.'' The OCC also 
is giving notice that it has sent the collection to OMB for review.

DATES: You should submit written comments by March 19, 2018.

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: 1557-0205, 400 7th Street SW, Suite 3E-218, 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 or, for persons who are deaf or hearing impaired, TTY, (202) 649-
5597. 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, 1557-0205, U.S. Office of Management and Budget, 725 17th 
Street NW, #10235, Washington, DC 20503 or by email to oira 
[email protected].

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, OCC Clearance 
Officer, (202) 649-5490 or, for persons who are deaf or hearing 
impaired, TTY, (202) 649-5597, Legislative and Regulatory Activities 
Division, Office of the Comptroller of the Currency, 400 7th Street SW, 
Washington, DC 20219.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501-3520), federal 
agencies must obtain approval from the OMB for each collection of 
information that they conduct or sponsor. ``Collection of information'' 
is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency 
requests or requirements that members of the public submit reports, 
keep records, or provide information to a third party. The OCC requests 
that OMB extend its approval of this collection.
    Title: Investment Securities.
    OMB Control No.: 1557-0205.
    Description: Under 12 CFR 1.3(h)(2), a national bank may request an 
OCC determination that it may invest in an entity that is exempt from 
registration under section 3(c)(1) of the Investment Company Act of 
1940 \1\ if the portfolio of the entity consists exclusively of assets 
that a national bank may purchase and sell for its own account. The OCC 
uses the information contained in the request as a basis for ensuring 
that the bank's investment is consistent with its investment authority 
under applicable law and does not pose unacceptable risk.
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    \1\ 15 U.S.C. 80a-3(c)(1).
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    Under 12 CFR 1.7(b), a national bank may request OCC approval to 
extend the five-year holding period for securities held in satisfaction 
of debts previously contracted for up to an additional five years. In 
its request, the bank must provide a clearly convincing demonstration 
of why any additional holding period is needed. The OCC uses the 
information in the request to ensure, on a case-by-case basis, that the 
bank's purpose in retaining the securities is not speculative and that 
the bank's reasons for requesting the extension are adequate. The OCC 
also uses the information to evaluate the risks to the bank of 
extending the holding period, including potential effects on the bank's 
safety and soundness.
    Type of Review: Extension of a currently approved collection.
    Affected Public: Businesses or other for-profit.
    Estimated Number of Respondents: 25.
    Estimated Total Annual Burden: 460 hours.
    Frequency of Response: On occasion.
    Comments: The OCC issued a notice for 60 days of comment regarding 
this collection on November 21, 2017, 82 FR 55487. The OCC received one 
comment from an individual.
    The comment related to 12 CFR 1.7(b). Twelve CFR 1.7(b) provides 
that a bank may hold securities in satisfaction of debts previously 
contracted for a period of five years and permits the OCC to extend the 
holding period up to an additional five years if the bank provides a 
clearly convincing demonstration as to why an additional holding period 
is needed.
    The commenter stated that banks should rarely need to hold 
securities in satisfaction of debts previously contracted longer than 
five years. The commenter requested that the OCC conduct a 
retrospective analysis on the need, fairness, and appropriateness of 
the text in 12 CFR 1.7(b) that permits the OCC to extend the holding 
period beyond five years. The commenter stated that this retrospective 
analysis would enable the OCC to narrow the requirements for an 
extended holding period and to specify in 12 CFR 1.7(b) the rare and 
unusual reasons why banks may need more than five years to dispose of a 
security. The commenter further stated that 12 CFR 1.7(b) currently 
encourages banks to speculate on securities acquired in satisfaction of 
debts previously contracted.
    In response to this comment, the OCC notes that the OCC cannot 
rescind regulations through the PRA renewal process. Moreover, as part 
of the OCC's ten-year regulatory review required under by section 222 
of the Economic Growth and Regulatory Paperwork Reduction Act 
(``EGRPRA''), the OCC issued notices soliciting comments on all OCC 
regulations, including 12 CFR part 1.\2\ The OCC did not receive any 
comments regarding 12 CFR part 1 in response to the relevant OCC 
notice. The OCC therefore did not propose any revisions to Part 1 in 
connection with the review required under EGRPRA. Furthermore, the text 
of 12 CFR 1.7(d) explicitly states that banks may not hold securities 
under 12 CFR 1.7 for speculative purposes. Finally, 12 CFR 1.7(b) makes 
clear that the burden is on the bank to provide ``a clearly convincing 
demonstration as to why an additional holding period is needed.'' In 
light of the prohibition on holding securities acquired under 12 CFR 
1.7 for speculative purposes, as well as the high standard that a bank 
must meet to receive an extended holding period under 12 CFR 1.7(b), 
the OCC does not believe that a retrospective analysis on the need, 
fairness, and appropriateness of the text in 12 CFR 1.7(b) is warranted 
at this time.
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    \2\ See Regulatory Publication and Review Under the Economic 
Growth and Regulatory Paperwork Reduction Act of 1996, 79 FR 32172, 
32178 (Jun. 4, 2014).
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    Comments continue to be invited on:
    (a) Whether the collection of information is necessary for the 
proper

[[Page 7106]]

performance of the functions of the OCC, including whether the 
information has practical utility;
    (b) The accuracy of the OCC'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: February 12, 2018.
Karen Solomon,
Acting Senior Deputy Comptroller and Chief Counsel, Office of the 
Comptroller of the Currency.
[FR Doc. 2018-03253 Filed 2-15-18; 8:45 am]
BILLING CODE 4810-33-P