[Federal Register Volume 86, Number 72 (Friday, April 16, 2021)]
[Notices]
[Pages 20151-20152]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-07801]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is adopting a proposal to extend for three years, without revision, the 
Margin Credit Reports (FR G-1, FR G-2, FR G-4, FR G-3, FR T-4 and FR U-
1; OMB No. 7100-0011).

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of 
Governors of the Federal Reserve System, Washington, DC 20551, (202) 
452-3829. Office of Management and Budget (OMB) Desk Officer--Shagufta 
Ahmed--Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Room 10235, 725 
17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.

SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board 
authority under the PRA to approve and assign OMB control numbers to 
collections of information conducted or sponsored by the Board. Board-
approved collections of information are incorporated into the official 
OMB inventory of currently approved collections of information. The OMB 
inventory, as well as copies of the PRA Submission, supporting 
statements, and approved collection of information instrument(s) are 
available at https://www.reginfo.gov/public/do/PRAMain. These documents 
are also available on the Federal Reserve Board's public website at 
https://www.federalreserve.gov/apps/reportforms/review.aspx or may be 
requested from the agency clearance officer, whose name appears above.

Final Approval Under OMB Delegated Authority of the Extension for Three 
Years, Without Revision, of the Following Information Collections

    Report title: Registration Statement for Persons Who Extend Credit 
Secured by Margin Stock (Other Than Banks, Brokers, or Dealers).
    Agency form number: FR G-1.
    OMB control number: 7100-0011.
    Frequency: Event-generated.
    Respondents: Federal and state credit unions; insurance companies; 
commercial and consumer credit organizations; production credit 
associations; small businesses; insurance premium funding plans; plan-
lenders (a company or its affiliate that extends credit to employees to 
purchase company stock under an eligible employee stock option or stock 
purchase plan); lenders to Employee Stock Ownership Plans (ESOPs), 
thrift plans, and broker-dealer affiliates; and other lenders.
    Estimated number of respondents: 13.
    Estimated average hours per response: 2.5.
    Estimated annual burden hours: 33.
    General description of report: The FR G-1 registration statement is 
required to enable the Federal Reserve to identify nonbank lenders 
subject to Regulation U, to verify compliance with the regulation, and 
to monitor margin credit. In addition, registered nonbank lenders can 
be subject to periodic review by the Board, National Credit Union 
Administration, and Farm Credit Administration. Information collected 
on the registration statement consists of certain background questions, 
information regarding the credit being extended, and dollar amounts of 
margin credit.

    Report title: Deregistration Statement for Persons Registered 
Pursuant to Regulation U.
    Agency form number: FR G-2.
    OMB control number: 7100-0011.
    Frequency: Event-generated.
    Respondents: Federal and state credit unions; insurance companies; 
commercial and consumer credit organizations; production credit 
associations; small businesses; insurance premium funding plans; plan-
lenders (a company or its affiliate that extends credit to employees to 
purchase company stock under an eligible employee stock option or stock 
purchase plan); lenders to Employee Stock Ownership Plans (ESOPs), 
thrift plans, and broker-dealer affiliates; and other lenders.
    Estimated number of respondents: 8.
    Estimated average hours per response: 0.25.
    Estimated annual burden hours: 2.
    General description of report: The FR G-2 deregistration statement 
is used by nonbank lenders to deregister if their margin credit 
activities no longer exceed the regulatory threshold found in 
Regulation U. Under section 221.3(b)(2) of Regulation U, a registered 
nonbank lender may apply to terminate its registration if the lender 
has not, during the preceding six calendar months, had more than 
$200,000 of such credit outstanding. The deregistration statement 
requires six items, including the name and phone number of the 
registrant, the firm's Internal Revenue Service Identification Number 
(registrants that are individuals are not required to disclose their 
Social Security number), the authorizing officer's signature and title, 
and the date. A nonbank lender who has deregistered must reregister if 
subsequent lending volume exceeds the thresholds identified in 
Regulation U.

    Report title: Statement of Purpose for an Extension of Credit 
Secured by Margin Stock by a Person Subject to Registration Under 
Regulation U.
    Agency form number: FR G-3.
    OMB control number: 7100-0011.
    Frequency: Event-generated.
    Respondents: Other lenders (not brokers, dealers, or banks).
    Estimated number of respondents: 6.
    Estimated average hours per response: 0.17.
    Estimated annual burden hours: 20.
    General description of report: Any nonbank lender subject to the 
registration requirements of Regulation

[[Page 20152]]

U must complete an FR G-3 purpose statement for each extension of 
credit secured directly or indirectly, in whole or in part, by any 
margin stock. The purpose statement is intended to ensure that a lender 
does not extend credit to purchase or carry margin stock in excess of 
the amount permitted by the Federal Reserve pursuant to Regulation U.

    Report title: Annual Report.
    Agency form number: FR G-4.
    OMB control number: 7100-0011.
    Frequency: Annually.
    Respondents: Federal and state credit unions; insurance companies; 
commercial and consumer credit organizations; production credit 
associations; small businesses; insurance premium funding plans; plan-
lenders (a company or its affiliate that extends credit to employees to 
purchase company stock under an eligible employee stock option or stock 
purchase plan); lenders to Employee Stock Ownership Plans (ESOPs), 
thrift plans, and broker-dealer affiliates; and other lenders.
    Estimated number of respondents: 70.
    Estimated average hours per response: 2.
    Estimated annual burden hours: 140.
    General description of report: The FR G-4 annual report requires 
nonbank lenders to provide the total amount of credit outstanding 
secured directly or indirectly by margin stock as of June 30, and the 
amount of credit extended secured directly or indirectly by margin 
stock during the year. Lenders are required to indicate whether the 
loans involved are purpose or nonpurpose and to disclose whether credit 
is used to fund employee stock options, purchases, or ownership plans. 
Those lenders funding stock options, purchases, and ownership plans 
must specify whether such credit was extended pursuant to the 
provisions set forth in section 221.4 of Regulation U, which authorizes 
employers to extend credit to employees and ESOPs without regard to the 
margin requirements. All nonbank lenders registered pursuant to 
Regulation U must file an annual report with the Federal Reserve. Any 
new registrants are required to file the annual report for the year 
following their registration date.

    Report title: Statement of Purpose for an Extension of Credit by a 
Creditor.
    Agency form number: FR T-4.
    OMB control number: 7100-0011.
    Frequency: Event-generated.
    Respondents: Brokers and dealers.
    Estimated number of respondents: 4.
    Estimated average hours per response: >0.17.
    Estimated annual burden hours: 14.
    General description of report: The FR T-4 must be completed only if 
the purpose of the credit being extended is not to purchase, carry, or 
trade in securities and the credit is in excess of that otherwise 
permitted under Regulation T (nonpurpose credit). The information 
captured on FR T-4 provides a written record of the amount of 
nonpurpose credit being extended, the purpose for which the money is to 
be used, and a listing and valuation of collateral.

    Report title: Statement of Purpose for an Extension of Credit 
Secured by Margin Stock.
    Agency form number: FR U-1.
    OMB control number: 7100-0011.
    Frequency: Event-generated.
    Respondents: Banks.
    Estimated number of respondents: 4.
    Estimated average hours per response: 0.17.
    Estimated annual burden hours: 51.
    General description of report: A bank must complete the FR U-1 
purpose statement when it extends credit in excess of $100,000 secured 
directly or indirectly, in whole or in part, by any margin stock. The 
information captured on FR U-1 provides a written record of the amount 
of credit being extended, the purpose for which the money is to be 
used, and a listing and valuation of collateral.
    Legal authorization and confidentiality: The FR G-1, G-2, G-3, G-4, 
T-4, and U-1 are authorized by Sections 7 and 23 of the Securities 
Exchange Act of 1934 which state, respectively, that the Board shall 
``prescribe rules and regulations with respect to the amount of credit 
that may be initially extended and subsequently maintained on any 
security'' and that ``[t]he Commission, the Board of Governors of the 
Federal Reserve System, and the other agencies enumerated in section 
78c(a)(34) of this title shall each have power to make such rules and 
regulations as may be necessary or appropriate to implement the 
provisions of this chapter for which they are responsible or for the 
execution of the functions vested in them by this chapter, and may for 
such purposes classify persons, securities, transactions, statements, 
applications, reports, and other matters within their respective 
jurisdictions, and prescribe greater, lesser, or different requirements 
for different classes thereof.''
    All six reports are mandatory. Individual respondents may request 
that information submitted to the Board through the FR G-1 and FR G-4 
be kept confidential. If a respondent requests confidential treatment, 
the Board will determine whether the information is entitled to 
confidential treatment on a case-by-case basis. To the extent a 
respondent submits nonpublic commercial or financial information, which 
is both customarily and actually treated as private by the respondent, 
the respondent may request confidential treatment pursuant to exemption 
4 of the Freedom of Information Act (FOIA). To the extent a respondent 
submits personal, medical, or similar files, the disclosure of which 
would constitute an unwarranted invasion of privacy, the respondent may 
request confidential treatment pursuant to exemption 6 of the FOIA.
    Because the FR T-4, FR U-1, and FR G-3 are maintained at each 
banking organization, FOIA would only be implicated if the Board 
obtained such records as part of the examination or supervision of a 
banking organization. In the event the records are obtained by the 
Board as part of an examination or supervision of a financial 
institution, this information would be considered confidential pursuant 
to exemption 8 of the FOIA, which protects information contained in 
``examination, operating, or condition reports'' obtained in the bank 
supervisory process. Information collected through the FR G-2 is not 
considered to be confidential.
    Current actions: On December 23, 2020, the Board published a notice 
in the Federal Register (85 FR 83950) requesting public comment for 60 
days on the extension, without revision, of the Margin Credit Reports. 
The comment period for this notice expired on February 22, 2021. The 
Board did not receive any comments.

    Board of Governors of the Federal Reserve System, April 12, 
2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021-07801 Filed 4-15-21; 8:45 am]
BILLING CODE 6210-01-P