[Federal Register Volume 85, Number 247 (Wednesday, December 23, 2020)]
[Notices]
[Pages 83950-83952]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28327]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice, request for comment.

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

DATES: Comments must be submitted on or before February 22, 2021.

ADDRESSES: You may submit comments, identified by FR G-1, FR G-2, FR G-
3, FR G-4, FR T-4, or FR U-1, by any of the following methods:
    <bullet> Agency website: https://www.federalreserve.gov/. Follow 
the instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#196b7c7e6a377a7674747c776d6a597f7c7d7c6b78756b7c6a7c6b6f7c377e766f"><span class="__cf_email__" data-cfemail="23514644500d404c4e4e464d5750634546474651424f514650465155460d444c55">[email protected]</span></a>. Include the OMB 
number in the subject line of the message.
    <bullet> Fax: (202) 452-3819 or (202) 452-3102.
    <bullet> Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available from the Board's website at 
https://

[[Page 83951]]

www.federalreserve.gov/apps/foia/proposedregs.aspx as submitted, unless 
modified for technical reasons or to remove personally identifiable 
information at the commenter's request. Accordingly, comments will not 
be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper in Room 146, 
1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m. and 
5:00 p.m. on weekdays. For security reasons, the Board requires that 
visitors make an appointment to inspect comments. You may do so by 
calling (202) 452-3684. Upon arrival, visitors will be required to 
present valid government-issued photo identification and to submit to 
security screening in order to inspect and photocopy comments.
    Additionally, commenters may send a copy of their comments to the 
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.

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.

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. In 
exercising this delegated authority, the Board is directed to take 
every reasonable step to solicit comment. In determining whether to 
approve a collection of information, the Board will consider all 
comments received from the public and other agencies.
    A copy of the Paperwork Reduction Act (PRA) OMB submission, 
including the reporting form and instructions, supporting statement, 
and other documentation will be placed into OMB's public docket files, 
if approved. These documents will also be made available on the 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.

Request for Comment on Information Collection Proposal

    The Board invites public comment on the following information 
collection, which is being reviewed under authority delegated by the 
OMB under the PRA. Comments are invited on the following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Board's functions, including whether the 
information has practical utility;
    b. The accuracy of the Board's estimate of the burden of the 
proposed information collection, including the validity of the 
methodology and assumptions used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.
    At the end of the comment period, the comments and recommendations 
received will be analyzed to determine the extent to which the Board 
should modify the proposal.

Proposal Under OMB Delegated Authority To Extend for Three Years, 
Without Revision, 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

[[Page 83952]]

registration requirements of Regulation 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 personnel, 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, the 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 may 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.

    Board of Governors of the Federal Reserve System, December 17, 
2020.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2020-28327 Filed 12-22-20; 8:45 am]
BILLING CODE 6210-01-P


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