[Federal Register Volume 85, Number 75 (Friday, April 17, 2020)]
[Notices]
[Pages 21474-21475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08188]


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NATIONAL CREDIT UNION ADMINISTRATION


Agency Information Collection Activities: Proposed Collection; 
Comment Request; Leasing

AGENCY: National Credit Union Administration (NCUA).

ACTION: Notice and request for comment.

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SUMMARY: The National Credit Union Administration (NCUA), as part of a 
continuing effort to reduce paperwork and respondent burden, invites 
the general public and other Federal agencies to comment on the 
following extension of a currently approved collection, as required by 
the Paperwork Reduction Act of 1995.

DATES: Written comments should be received on or before June 16, 2020 
to be assured consideration.

ADDRESSES: Interested persons are invited to submit written comments on 
the information collection to Mackie Malaka, National Credit Union 
Administration, 1775 Duke Street, Suite 6060, Alexandria, Virginia 
22314; Fax

[[Page 21475]]

No. 703-519-8579; or email at [email protected].

FOR FURTHER INFORMATION CONTACT: Address requests for additional 
information to Mackie Malaka at the address above or telephone 703-548-
2704.

SUPPLEMENTARY INFORMATION: OMB Number: 3133-0151.
    Title: Leasing, 12 CFR part 714.
    Type of Review: Extension of a currently approved collection.
    Abstract: Section 714.5 of NCUA's Regulations requires a federal 
credit union engaged in leasing to obtain or have on file financial 
documentation demonstrating that the guarantor of an estimated residual 
value has the resources to meet the guarantee. Estimated residual value 
is the projected future value of leased property at lease end. The 
accuracy of the estimated residual values used in a lease program is a 
fundamental element in the success or failure of a lease program. The 
higher the estimated residual values used by a federal credit union, 
the greater the potential for loss. To mitigate this risk, the leasing 
rule requires that if the amount of the estimated residual value relied 
on by the federal credit union to satisfy the full payout lease 
requirement exceeds 25 percent of the original cost of the leased 
property, the credit union must obtain a guarantee of the excess from a 
financially capable party. If the guarantor cannot meet its guarantee, 
a federal credit union may suffer serious financial loss. Accordingly, 
it is important that a federal credit union documents that a guarantor 
has the financial resources and capability to meet the guarantee. If 
the guarantor is an insurance company, the federal credit union may 
satisfy this record keeping requirement by obtaining and maintaining 
information demonstrating that the insurance company has a rating 
equivalent to a B+ or better from a major rating company.
    Affected Public: Private Sector: Not-for-profit institutions.
    Estimated No. of Respondents: 68.
    Estimated No. of Responses per Respondent: 5.
    Estimated Total Annual Responses: 340
    Estimated Burden Hours per Response: 2.
    Estimated Total Annual Burden Hours: 680.
    Request for Comments: Comments submitted in response to this notice 
will be summarized and included in the request for Office of Management 
and Budget approval. All comments will become a matter of public 
record. The public is invited to submit comments concerning: (a) 
Whether the collection of information is necessary for the proper 
execution of the function of the agency, including whether the 
information will have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the collection of information, 
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 the collection of 
the information on the respondents, including the use of automated 
collection techniques or other forms of information technology.
    By Gerard Poliquin, Secretary of the Board, the National Credit 
Union Administration, on April 14, 2020.

    Dated: April 14, 2020.
Mackie I. Malaka,
NCUA PRA Clearance Officer.
[FR Doc. 2020-08188 Filed 4-16-20; 8:45 am]
BILLING CODE 7535-01-P