[Federal Register Volume 83, Number 64 (Tuesday, April 3, 2018)]
[Notices]
[Pages 14316-14317]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-06583]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Comment Request; Subordinated Debt Licensing Requirements

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 
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 the renewal of its 
information collection titled, ``Subordinated Debt Licensing 
Requirements.''

DATES: Comments must be submitted on or before June 4, 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. You may submit comments by any of the following 
methods:
     Email: [email protected].
     Mail: Legislative and Regulatory Activities Division, 
Office of the Comptroller of the Currency, Attention: 1557-0320, 400 
7th Street SW, Suite 3E-218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0320'' in your comment. In general, the OCC will publish them on 
www.reginfo.gov without change, including any business or personal 
information that you provide, such as name and address information, 
email addresses, or phone numbers. 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.
    You may review comments and other related materials that pertain to 
this information collection beginning on the date of publication of the 
second notice for this collection \1\ by any of the following methods:
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    \1\ Following the close of the 60-Day comment period for this 
notice, the OCC will publish a notice for 30 days of comment for 
this collection.
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     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' tab. Underneath the 
``Currently under Review'' section heading, from the drop-down menu, 
select ``Department of Treasury'' and then click ``submit.'' This 
information collection can be located by searching by OMB control 
number ``1557-0320'' or ``Subordinated Debt Licensing Requirements.'' 
Upon finding the appropriate information collection, click on the 
related ``ICR Reference Number.'' On the next screen, select ``View 
Supporting Statement and Other Documents'' and then click on the link 
to any comment listed at the bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.
     Viewing Comments Personally: You may personally inspect 
and photocopy comments at the OCC, 400 7th Street SW, Washington, DC. 
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.

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 OMB for each collection of 
information 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. Section 
3506(c)(2)(A) of the PRA (44 U.S.C. 3506(c)(2)(A)) requires federal 
agencies to provide a 60-day notice in the Federal Register concerning 
each proposed collection of information, including each renewal of an 
existing collection of information, before submitting the collection to 
OMB for approval. To comply with this requirement, the OCC is 
publishing notice of the proposed collection of information set forth 
in this document.
    Title: Subordinated Debt Licensing Requirements.
    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 scope of this Information Collection Renewal is 
limited to the following: (1) The 12 CFR 5.47(g) and 12 CFR 5.56(b) 
requirements that national banks and federal savings associations 
(collectively, ``institutions'') apply for OCC approval prior to 
prepaying subordinated debt if the prepayment is in the form of a call 
option; and (2) the 12 CFR 5.47(d) requirement that national banks 
issuing subordinated debt disclose the OCC's authority under 12 CFR 
3.11 to limit distributions.
    National banks must receive prior OCC approval in order to prepay 
subordinated debt that is included in tier 2 capital, and certain banks 
must receive prior approval to prepay subordinated debt that is not 
included in tier 2 capital. If the prepayment is in the form of a call 
option, a national bank must submit the information required

[[Page 14317]]

for general prepayment requests under 12 CFR 5.47(g)(1)(ii)(A) and also 
comply with 12 CFR 5.47(g)(1)(ii)(B)(2), 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.
    Federal savings associations must receive OCC approval prior to 
prepaying subordinated debt securities or mandatorily redeemable 
preferred stock included in tier 2 capital. 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 
5.56(b)(2)(i) and also comply with 12 CFR 5.56(b)(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 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.
    Pursuant to 12 CFR 5.47(d)(3)(ii)(C), a national bank issuing 
subordinated debt must disclose on the face of the 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.
    Comments submitted in response to this notice will be summarized 
and included in the request for OMB approval. All comments will become 
a matter of public record. Comments are 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: March 27, 2018.
Karen Solomon,
Acting First Deputy Comptroller and Chief Counsel, Office of the 
Comptroller of the Currency.
[FR Doc. 2018-06583 Filed 4-2-18; 8:45 am]
 BILLING CODE 4810-33-P