Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Notices 9211 

1 700 MHz Block A Good Faith Purchaser 

Alliance Petition for Rulemaking Regarding the 

Need for 700 MHz Mobile Equipment to be Capable 

of Operating on All Paired Commercial 700 MHz 

Frequency Blocks, filed Sept. 29, 2009 (Petition), at 

1. The Alliance is a ‘‘joint venture’’ consisting of 

Cellular South Licenses, Inc.; Cavalier Wireless, 

LLC; Continuum 700, LLC; and King Street 

Wireless, L.P., each of which is currently the 

licensee of Lower 700 MHz Band A Block spectrum. 

Id. 

2Petition at iii, 12. 

3Petition at 1–2. 

4The Bureau notes that several parties have 

already filed comments in various proceedings that 

discuss either the Petition or substantially similar 

issues. See, e.g., Cellular South Comments, WT 

Docket No. 09–66 (filed Sept. 30, 2009) at 8–15; 

Verizon Wireless Reply Comments, WT Docket No. 

09–66 (filed Oct. 22, 2009), at 85–92; AT&T, Inc. 

Reply Comments, WT Docket No. 09–66 (filed Oct. 

22, 2009) (AT&T Reply Comments), at 70–72; 

Verizon Wireless Ex parte, WT Docket No. 09–66; 

GN Docket No. 09–157 (filed Dec. 18, 2009) 

(Verizon Ex parte); Qualcomm Ex parte, WT Docket 

No. 09–66; GN Docket No. 09–157 (filed Jan. 25, 

2010); Motorola Comments, RM–11592 (filed 

Feb. 12, 2010). 

5See AT&T Reply Comments at 72; Verizon 

Wireless Ex parte at 7. 

6Petition at 2, 4. 

7Petition at 7–9. 

• People With Disabilities: To request 

materials in accessible formats for 

people with disabilities (braille, large 

print, electronic files, audio format), 

send an e-mail to fcc504@fcc.gov or call 

the Consumer & Governmental Affairs 

Bureau at 202–418–0530 (Voice), 202– 

418–0432 (TTY). 

All filings must be addressed to the 

Commission’s Secretary, Marlene H. 

Dortch, Office of the Secretary, Federal 

Communications Commission, 445 12th 

Street, SW., Washington, DC 20554. 

Documents in RM No. 11592, including 

a copy of the petition, are available for 

public inspection and copying during 

business hours at the FCC Reference 

Information Center, Portals II, 445 12th 

Street, SW., Room CY–A257, 

Washington, DC 20554. The documents 

may also be purchased from BCPI, 

telephone (202) 488–5300, facsimile 

(202) 488–5563, TTY (202) 488–5562, 

e-mail fcc@bcpiweb.com. 

This matter shall be treated as a 

‘‘permit-but-disclose’’ proceeding in 

accordance with the Commission’s ex 

parte rules. See 47 CFR 1.1200, 1.1206. 

Persons making oral ex parte 

presentations are reminded that 

memoranda summarizing the 

presentations must contain summaries 

of the substance of the presentations 

and not merely a listing of the subjects 

discussed. More than a one- or twosentence description of the views and 

arguments presented generally is 

required. See 47 CFR 1.1206(b). Other 

rules pertaining to oral and written ex 

parte presentations in permit-butdisclose proceedings are set forth in 

section 1.1206(b) of the Commission’s 

rules, 47 CFR 1.1206(b). 

FOR FURTHER INFORMATION CONTACT: Won 

Kim, Spectrum and Competition Policy 

Division, Wireless Telecommunications 

Bureau, at (202) 418–1368. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s Public 

Notice in RM No. 11592 and DA 10– 

278, released on February 18, 2010. On 

September 29, 2009, an alliance 

comprised of four Lower 700 MHz Band 

A Block licensees (Petitioners) filed a 

petition for rulemaking, asking the 

Commission to ‘‘assure that consumers 

will have access to all paired 700 MHz 

spectrum that the Commission licenses, 

to act so that the entire 700 MHz band 

will develop in a competitive fashion, 

and to adopt rules that prohibit 

restrictive equipment arrangements that 

are contrary to the public interest.’’ 1

Specifically, the Petitioners ask the 

Commission to require that all mobile 

units for the 700 MHz band be capable 

of operating over all frequencies in the 

band.2 The Petitioners further request 

‘‘an immediate freeze on the 

authorization of mobile equipment that 

is not capable of operation on all paired 

commercial 700 MHz frequencies.’’ 3

The Wireless Telecommunications 

Bureau seeks comment on the Petition.4

AT&T and Verizon Wireless have 

indicated that they are pursuing 700 

MHz Long Term Evolution (LTE) mobile 

devices that operate over the 700 MHz 

spectrum blocks associated with some 

or all of their own respective 700 MHz 

band licenses but that do not include 

the Lower 700 MHz Band A Block (A 

Block).5 The Petitioners assert that these 

‘‘equipment design and procurement 

practices contravene the public 

interest,’’ arguing that, if the equipment 

offered by these large carriers does not 

operate over A Block, mobile 700 MHz 

‘‘equipment needed by [A Block] 

licensees in smaller volumes will likely 

be available only later in time and at 

considerably higher price points.’’ 6 The 

Petitioners also argue that such 

practices ‘‘are unjustly discriminatory 

and anticompetitive’’ in violation of 

Sections 201(b) and 202(a) of the 

Communications Act (Act), and that 

they are in conflict with other 

provisions of the Act, including the 

universal service goals of Section 

254(b)(3) and the license application 

review criteria of Section 307(b).7

The Wireless Telecommunications 

Bureau seeks comment on relevant 

technical, legal, economic, and policy 

issues involving the Petitioners’ request 

that the Commission commence a 

rulemaking proceeding. The 

Commission notes, for instance, that 

devices capable of operating in the A 

Block will be using spectrum adjacent to 

the full-power DTV broadcasting 

operations on Channel 51, and to the 

Lower 700 MHz Band E Block, which 

may be used for higher-powered mobile 

services under Commission rules. 

Federal Communications Commission. 

Ruth Milkman, 

Chief, Wireless Telecommunications Bureau. 

[FR Doc. 2010–4140 Filed 2–26–10; 8:45 am] 

BILLING CODE 6712–01–P 

FEDERAL RESERVE SYSTEM 

Agency Information Collection 

Activities: Announcement of Board 

Approval Under Delegated Authority 

and Submission to OMB; Correction 

This notice corrects a notice (FR Doc. 

2010–3578) published on pages 8355 

through 8362 of the issue for February 

24, 2010. 

Under the Federal Reserve System 

heading, the entry for Agency 

Information Collection Activities: 

Announcement of Board Approval 

Under Delegated Authority and 

Submission to OMB, is revised to read 

as follows: 

SUMMARY: Background. Notice is hereby 

given of the final approval of proposed 

information collections by the Board of 

Governors of the Federal Reserve 

System (Board) under OMB delegated 

authority, as per 5 CFR 1320.16 (OMB 

Regulations on Controlling Paperwork 

Burdens on the Public). Board-approved 

collections of information are 

incorporated into the official OMB 

inventory of currently approved 

collections of information. Copies of the 

Paperwork Reduction Act Submission, 

supporting statements and approved 

collection of information instruments 

are placed into OMB’s public docket 

files. The Federal Reserve may not 

conduct or sponsor, and the respondent 

is not required to respond to, an 

information collection that has been 

extended, revised, or implemented on or 

after October 1, 1995, unless it displays 

a currently valid OMB control number. 

FOR FURTHER INFORMATION CONTACT: 

Federal Reserve Board Clearance 

Officer—Michelle Shore—Division of 

Research and Statistics, Board of 

Governors of the Federal Reserve 

System, Washington, DC 20551 (202– 

452–3829) 

OMB Desk Officer—Shagufta 

Ahmed—Office of Information and 

Regulatory Affairs, Office of 

Management and Budget, New 

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9212 Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Notices 

Executive Office Building, Room 10235, 

Washington, DC 20503. 

Final approval under OMB delegated 

authority of the revision, without 

extension, of the following reports: 

1. Report title: Consolidated Financial 

Statements for Bank Holding 

Companies. 

Agency form number: FR Y–9C. 

OMB control number: 7100–0128. 

Frequency: Quarterly. 

Reporters: BHCs. 

Estimated annual reporting hours: 

174,070 hours. 

Estimated average hours per response: 

42.25 hours. 

Number of respondents: 1,030. 

General description of report: This 

information collection is mandatory (12 

U.S.C. 1844(c)). Confidential treatment 

is not routinely given to the data in 

these reports. However, confidential 

treatment for the reporting information, 

in whole or in part, can be requested in 

accordance with the instructions to the 

form, pursuant to sections (b)(4), 

(b)(6)and (b)(8) of the Freedom of 

Information Act (5 U.S.C. 552(b)(4), 

(b)(6) and (b)(8)). 

Abstract: The FR Y–9 family of 

reports historically has been, and 

continues to be, the primary source of 

financial information on BHCs between 

on-site inspections. Financial 

information from these reports is used 

to detect emerging financial problems, 

to review performance and conduct preinspection analysis, to monitor and 

evaluate capital adequacy, to evaluate 

BHC mergers and acquisitions, and to 

analyze a BHC’s overall financial 

condition to ensure safe and sound 

operations. 

The FR Y–9C consists of standardized 

financial statements similar to the 

Federal Financial Institutions 

Examination Council (FFIEC) 

Consolidated Reports of Condition and 

Income (Call Reports) (FFIEC 031 & 041; 

OMB No. 7100–0036) filed by 

commercial banks. The FR Y–9C 

collects consolidated data from BHCs. 

The FR Y–9C is filed by top-tier BHCs 

with total consolidated assets of $500 

million or more. (Under certain 

circumstances defined in the General 

Instructions, BHCs under $500 million 

may be required to file the FR Y–9C.) 

Current Actions: On September 25, 

2009, the Federal Reserve published a 

notice in the Federal Register (74 FR 

48960) requesting public comment for 

60 days on the revision, without 

extension, of the FR Y–9C report. The 

comment period for this notice expired 

on November 24, 2009. The Federal 

Reserve received one comment letter on 

this proposal. In addition, the Federal 

Reserve, Federal Deposit Insurance 

Corporation (FDIC), and Office of the 

Comptroller of the Currency (OCC) (the 

banking agencies) received six comment 

letters on proposed revisions to the 

Consolidated Reports of Condition and 

Income (Call Reports) (FFIEC 031 & 041; 

OMB No. 7100–0036) that parallel the 

proposed revisions to the FR Y–9C and 

are taken into consideration for this 

proposal. 

Summary of Comments 

The Federal Reserve received one 

comment letter from a bankers’ 

organization on proposed revisions to 

the FR Y–9C (who also submitted 

comparable comments on proposed 

changes to the Call Report). In addition, 

the banking agencies received comment 

letters from six organizations: two 

banks, one bank holding company 

(BHC), two bankers’ organizations, and 

a bank insurance consultant on 

proposed changes to the Call Report, 

many of which parallel proposed 

changes to the FR Y–9C and are taken 

into consideration for this proposal. 

None of the commenters addressed all 

aspects of the proposed changes to the 

FR Y–9C and Call Report. Rather, 

individual respondents commented on 

one or more of the proposed changes. 

Four of the commenters offered general 

views on the overall proposal. One bank 

expressed general support for the 

proposal and identified a few items that 

deserved further consideration. The 

bankers’ organization commented that 

its members expressed no concerns with 

many of the proposed changes, but it 

urged the Federal Reserve and the 

banking agencies to consider several 

suggested changes in the final revisions. 

The organization’s suggested changes 

also included the proposed collection of 

data in one subject area that was not 

addressed in the proposal. 

One bank opposed the proposed 

revisions, stating they would not 

improve the safety and soundness of 

any banking organization, yet would 

add to banking organizations’ costs of 

operations. While an important use of 

FR Y–9C data is to assist the Federal 

Reserve in fulfilling their supervisory 

responsibilities with respect to the 

safety and soundness of individual 

BHCs as well as the banking system as 

a whole, FR Y–9C data are also used for 

a variety of other purposes, such as 

supporting the conduct of monetary 

policy and assessing the availability of 

credit. Furthermore, in developing the 

FR Y–9C revisions for 2010, the Federal 

Reserve carefully considered the 

purposes for which the proposed 

additional data would be used, which 

are described in the September 25, 2009, 

Federal Register notice and, to the 

extent appropriate, in this Federal 

Register notice. The Federal Reserve 

also considered the estimated cost and 

burden to BHCs of reporting these 

additional data. 

The following section of this notice 

describes the proposed FR Y–9C report 

changes and discusses the Federal 

Reserve’s evaluation of the comments 

received on the proposed changes, 

including modifications made in 

response to those comments. The 

following section also addresses the 

Federal Reserve’s response to the 

recommendation from the bankers’ 

organization’s concerning the collection 

of certain additional data that had not 

been included in the September 25, 

2009, notice. 

After considering the comments, the 

Federal Reserve will move forward in 

2010 with the proposed reporting 

changes after making certain 

modifications in response to the 

comments. In addition, the Federal 

Reserve will add four data items to the 

FR Y–9C on assets covered by FDIC 

loss-sharing agreements in response to 

the recommendation from the bankers’ 

organization. 

The Federal Reserve recognizes 

institutions’ need for lead time to 

prepare for reporting changes. Thus, 

consistent with longstanding practice, 

for the March 31, 2010, report date, 

BHCs may provide reasonable estimates 

for any new or revised FR Y–9C data 

item initially required to be reported as 

of that date for which the requested 

information is not readily available. 

Furthermore, the specific wording of the 

captions for the new or revised FR Y– 

9C data items discussed in this notice 

and the numbering of these data items 

should be regarded as preliminary. 

I. FR Y–9C Revisions Proposed for 

March 2010 

The Federal Reserve and the banking 

agencies received either no comments 

on or comments expressing support for 

the following revisions that were 

proposed to take effect as of March 31, 

2010, and therefore the Federal Reserve 

will implement these revisions as 

proposed: 

• New Memorandum items in 

Schedule HI, Income Statement, 

identifying total other-than-temporary 

impairment losses on debt securities, 

the portion of the total recognized in 

other comprehensive income, and the 

net losses recognized in earnings, 

consistent with the presentation 

requirements of a recent accounting 

standard; 

• Clarification of the instructions for 

reporting brokered deposits in Schedule 

HC–E, and 

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Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Notices 9213 

1Statement of Financial Accounting Standards 

(FAS Statements) No. 166, Accounting for Transfers 

of Financial Assets, amends FAS Statement No. 

140, Accounting for Transfers and Servicing of 

Financial Assets and Extinguishments of Liabilities. 

FAS Statement No. 167, Amendments to Financial 

Accounting Standards Board (FASB) Interpretation 

No. 46(R), amends FASB Interpretation No. 46(R), 

Consolidation of Variable Interest Entities. In 

general, under the FASB Accounting Standards 

CodificationTM, see Topics 860, Transfers and 

Servicing, and 810, Consolidation. 

• Reformatting of loan information 

collected on Schedule HC–K, Quarterly 

Averages. 

The Federal Reserve and the banking 

agencies received one or more 

comments addressing or otherwise 

relating to each of the following 

proposed revisions: 

• Clarification of the instructions for 

reporting unused commitments in 

Schedule HC–L, Derivatives and OffBalance-Sheet Items; 

• Breakdowns of the existing data 

items in Schedule HC–L for unused 

credit card lines and other unused 

commitments, with the former 

breakdown required only for certain 

institutions, and a related breakdown of 

the existing data item for other loans in 

Schedule HC–C, Loans and Lease 

Financing Receivables; and 

• Clarification of impact of FAS 

Statements Nos. 166 and 167 1 on the 

reporting instructions, and related 

potential future proposed revisions. 

The Federal Reserve and the banking 

agencies also received one comment 

recommending the addition of data to 

the FR Y–9C on assets covered by FDIC 

loss-sharing agreements, which the 

Federal Reserve had not proposed. 

A. Clarification of the Instructions for 

Reporting Unused Commitments 

BHCs report unused commitments in 

data item 1 of Schedule HC–L, 

Derivatives and Off-Balance Sheet 

Items. The instructions for this data 

item identify various arrangements that 

should be reported as unused 

commitments, including but not limited 

to commitments for which the BHC has 

charged a commitment fee or other 

consideration, commitments that are 

legally binding, loan proceeds that the 

BHC is obligated to advance, 

commitments to issue a commitment, 

and revolving underwriting facilities. 

However, the Federal Reserve has found 

that some BHCs have not reported 

commitments that they have entered 

into until they have signed the loan 

agreement for the financing that they 

have committed to provide. Although 

the Federal Reserve considers these 

arrangements to be commitments to 

issue a commitment and within the 

scope of the existing instructions for 

reporting commitments in Schedule 

HC–L, the Federal Reserve believes that 

these instructions may not be 

sufficiently clear. Therefore, the Federal 

Reserve proposed to revise the 

instructions for Schedule HC–L, data 

item 1, Unused commitments, to clarify 

that commitments to issue a 

commitment at some point in the future 

are those where the BHC has extended 

terms and the borrower has accepted the 

offered terms, even though the related 

loan agreement has not yet been signed. 

One bank and the bankers’ 

organization commented on this 

proposed revision to the instructions for 

reporting commitments to issue a 

commitment. The bank recommended 

that these instructions ‘‘should include 

only terms extended and accepted in 

writing to allow the banks to develop a 

reliable tracking system.’’ Similarly, the 

bankers’ organization recommended 

that the commitment be in writing, but 

also stated that banking organizations 

should only be required to report when 

the commitment ‘‘has an expiration date 

of greater than 90 days.’’ The bankers’ 

organization further added that it 

‘‘would be exceedingly difficult to 

capture commitments that have an 

expiration date of 90 days or less and 

that are not in writing.’’ The 

organization requested that the Federal 

Reserve and the banking agencies delay 

the effective date of the revised 

instructions for reporting commitments 

to issue a commitment by at least six 

months ‘‘to allow [banking 

organizations] sufficient time to adjust 

their systems.’’ 

The Federal Reserve generally agrees 

with the recommendation that the 

instructions for reporting commitments 

to issue a commitment should cover 

situations where the terms extended and 

accepted are in writing. However, in 

those circumstances where the 

extension and acceptance of the terms 

are not in writing but are legally binding 

on both the BHC and the borrower 

under applicable law, the Federal 

Reserve believes that such commitments 

should be reported. Furthermore, when 

the terms of a commitment to issue a 

commitment have been extended and 

accepted in writing or, if not in writing, 

are legally binding, the Federal Reserve 

believes that it is a sound banking 

practice and a sound internal control for 

the BHC entering into such 

commitments to maintain an 

appropriate tracking system for the 

commitments whether or not there is a 

related regulatory reporting 

requirement. 

Accordingly, the Federal Reserve 

recommends revising the proposed 

instructional clarification pertaining to 

the reporting of commitments to issue a 

commitment in Schedule HC–L, data 

item 1, Unused commitments, to state 

that commitments to issue a 

commitment at some point in the future 

are those where the BHC has extended 

terms, the borrower has accepted the 

offered terms, and the terms extended 

and accepted are in writing or, if not in 

writing, are legally binding on the BHC 

and the borrower, even though the 

related loan agreement has not yet been 

signed. Although the Federal Reserve 

will not delay the effective date for this 

instructional clarification, BHCs will be 

reminded that, because of the revision 

to the instructions for reporting 

commitments to issue a commitment in 

Schedule HC–L, data item 1, they may 

provide a reasonable estimate of the 

amount of such commitments in their 

FR Y–9C reports for March 31, 2010. In 

response to the comments received, the 

revised instructions for Schedule HC–L, 

data item 1, would read as follows: 

Report in the appropriate subitem the 

unused portions of commitments. Unused 

commitments are to be reported gross, i.e., 

include in the appropriate subitem the 

unused amount of commitments acquired 

from and conveyed or participated to others. 

However, exclude commitments conveyed or 

participated to others that the bank holding 

company is not legally obligated to fund even 

if the party to whom the commitment has 

been conveyed or participated fails to 

perform in accordance with the terms of the 

commitment. 

For purposes of this item, commitments 

include: 

(1) Commitments to make or purchase 

extensions of credit in the form of loans or 

participations in loans, lease financing 

receivables, or similar transactions. 

(2) Commitments for which the bank 

holding company has charged a commitment 

fee or other consideration. 

(3) Commitments that are legally binding. 

(4) Loan proceeds that the bank holding 

company is obligated to advance, such as: 

(a) Loan draws; 

(b) Construction progress payments; and 

(c) Seasonal or living advances to farmers 

under prearranged lines of credit. 

(5) Rotating, revolving, and open-end 

credit arrangements, including, but not 

limited to, retail credit card lines and home 

equity lines of credit. 

(6) Commitments to issue a commitment at 

some point in the future, where the bank 

holding company has extended terms, the 

borrower has accepted the offered terms, and 

the extension and acceptance of the terms are 

in writing or, if not in writing, are legally 

binding on the bank holding company and 

the borrower, even though the related loan 

agreement has not yet been signed. 

(7) Overdraft protection on depositors’ 

accounts offered under a program where the 

bank holding company advises account 

holders of the available amount of overdraft 

protection, for example, when accounts are 

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9214 Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Notices 

opened or on depositors’ account statements 

or ATM receipts. 

(8) The bank holding company’s own 

takedown in securities underwriting 

transactions. 

(9) Revolving underwriting facilities 

(RUFs), note issuance facilities (NIFs), and 

other similar arrangements, which are 

facilities under which a borrower can issue 

on a revolving basis short-term paper in its 

own name, but for which the underwriting 

bank holding company has a legally binding 

commitment either to purchase any notes the 

borrower is unable to sell by the rollover date 

or to advance funds to the borrower. 

Exclude forward contracts and other 

commitments that meet the definition of 

a derivative and must be accounted for 

in accordance with FASB Accounting 

Standards Codifications Subtopic 815– 

10, Derivatives and Hedging—Overall 

(formerly referred to as Statement No. 

133), which should be reported in 

Schedule HC–L, item 13. Include the 

amount (not the fair value) of the 

unused portions of loan commitments 

that do not meet the definition of a 

derivative that the bank holding 

company has elected to report at fair 

value under a fair value option. Also 

include forward contracts that do not 

meet the definition of a derivative. 

The unused portions of commitments 

are to be reported in the appropriate 

subitem regardless of whether they 

contain ‘‘material adverse change’’ 

clauses or other provisions that are 

intended to relieve the issuer of its 

funding obligations under certain 

conditions and regardless of whether 

they are unconditionally cancelable at 

any time. 

In the case of commitments for 

syndicated loans, report only the bank 

holding company’s proportional share 

of the commitment. 

For purposes of reporting the unused 

portions of revolving asset-based 

lending commitments, the commitment 

is defined as the amount a bank holding 

company is obligated to fund—as of the 

report date—based on the contractually 

agreed upon terms. In the case of 

revolving asset-based lending, the 

unused portions of such commitments 

should be measured as the difference 

between (a) the lesser of the contractual 

borrowing base (i.e., eligible collateral 

times the advance rate) or the note 

commitment limit, and (b) the sum of 

outstanding loans and letters of credit 

under the commitment. The note 

commitment limit is the overall 

maximum loan amount beyond which 

the bank holding company will not 

advance funds regardless of the amount 

of collateral posted. This definition of 

‘‘commitment’’ is applicable only to 

revolving asset-based lending, which is 

a specialized form of secured lending in 

which a borrower uses current assets 

(e.g., accounts receivable and inventory) 

as collateral for a loan. The loan is 

structured so that the amount of credit 

is limited by the value of the collateral. 

B. Additional Categories of Unused 

Commitments and Loans 

The extent to which banks and other 

financial intermediaries are reducing 

the supply of credit during the current 

financial crisis has been of great interest 

to the Federal Reserve and to Congress. 

Also, BHC lending plays a central role 

in any economic recovery and the 

Federal Reserve needs data to better 

determine when credit conditions ease. 

One way to measure the supply of credit 

is to analyze the change in total lending 

commitments by BHCs, considering 

both the amount of loans outstanding 

and the volume of unused credit lines. 

These data are also needed for safety 

and soundness purposes because draws 

on commitments during periods when 

BHCs face significant funding pressures, 

such as during the Fall of 2008, can 

place significant and unexpected 

demands on the liquidity and capital 

positions of BHCs. Therefore, the 

Federal Reserve proposed breaking out 

in further detail two categories of 

unused commitments on Schedule HC– 

L, Derivatives and Off-Balance-Sheet 

Items. The Federal Reserve also 

proposed to break out in further detail 

one new loan category on Schedule HC– 

C, Loans and Lease Financing 

Receivables. These new data items 

would improve the Federal Reserve’s 

ability to get timely and accurate 

readings on the supply of credit to 

households and businesses. These data 

would also be useful in determining the 

effectiveness of the government’s 

economic stabilization programs. 

Unused commitments associated with 

credit card lines are currently reported 

in Schedule HC–L, data item 1.b. This 

data item is not meaningful for 

monitoring the supply of credit because 

it mixes consumer credit card lines with 

credit card lines for businesses and 

other entities. As a result of this 

aggregation, it is not possible to fully 

monitor credit available specifically to 

households. Furthermore, the Federal 

Reserve would benefit from the split 

because the usage patterns, profitability, 

and evolution of credit quality through 

the business cycle are likely to differ for 

consumer credit cards and business 

credit cards. Therefore, the Federal 

Reserve proposed to split Schedule HC– 

L, data item 1.b into unused consumer 

credit card lines and other unused 

credit card lines. Draws from these 

credit lines that have not been sold are 

already reported on Schedule HC–C. For 

example, BHCs must report draws on 

credit cards issued to nonfarm 

nonfinancial businesses as commercial 

and industrial (C&I) loans in Schedule 

HC–C, data item 4, and draws on 

personal credit cards as consumer loans 

in Schedule HC–C, data item 6.a. 

Schedule HC–L, data item 1.e, 

aggregates all other unused 

commitments and includes unused 

commitments to fund C&I loans (other 

than credit card lines to commercial and 

industrial enterprises, which are 

reported in data item 1.b, and 

commitments to fund commercial real 

estate, construction, and land 

development loans not secured by real 

estate, which are reported in data item 

1.c.(2)). Separating these C&I lending 

commitments from the other 

commitments included in other unused 

commitments would considerably 

improve the Federal Reserve’s ability to 

analyze business credit conditions. A 

very large percentage of banks 

responding to the Federal Reserve’s 

Senior Loan Officer Opinion Survey on 

Bank Lending Practices (FR 2018; OMB 

No. 7100–0058) reported having 

tightened lending policies for C&I loans 

and credit lines during 2008; however, 

C&I loans on banks’ balance sheets 

expanded through the end of October 

2008, reportedly as a result of 

substantial draws on existing credit 

lines. In contrast, other unused 

commitments reported on the Call 

Report contracted. Without the 

proposed breakouts of such 

commitments, it was not possible to 

know how total business borrowing 

capacity had changed. The FR 2018 data 

do not suffice because they are 

qualitative rather than quantitative and 

are collected only from a sample of 

institutions up to six times per year. 

Having the additional unused 

commitment data reported separately on 

the FR Y–9C (and Call Report), along 

with the proposed changes to schedule 

HC–C described below, would have 

indicated more clearly whether there 

was a widespread restriction in new 

credit available to businesses. 

Therefore, the Federal Reserve 

proposed to split Schedule HC–L, data 

item 1.e into three categories: (1) 

Unused commitments to fund 

commercial and industrial loans (which 

would include only commitments not 

reported in Schedule HC–L, data items 

1.b and 1.c(2), for loans that, when 

funded, would be reported in Schedule 

HC–C, data item 4), (2) unused 

commitments to fund loans to financial 

institutions (defined to include 

depository institutions and 

nondepository institutions such as real 

estate investment trusts, mortgage 

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Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Notices 9215 

2FASB News Release, June 12, 2009, http:// 

www.fasb.org/cs/ContentServer?c=

FASBContent_C&pagename=FASB/

FASBContent_C/NewsPage&cid

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companies, holding companies of other 

depository institutions, insurance 

companies, finance companies, 

mortgage finance companies, factors and 

other financial intermediaries, shortterm business credit institutions, 

personal finance companies, investment 

banks, bank’s own trust department, 

other domestic and foreign financial 

intermediaries, and Small Business 

Investment Companies), and (3) all 

other unused commitments. 

With respect to Schedule HC–C, the 

Federal Reserve proposed to split data 

item 9.b for all other loans into loans to 

nondepository financial institutions (as 

defined above) and all other loans. 

BHCs already report data on loans to 

depository institutions in Schedule HC– 

C, data item 2. This change to schedule 

HC–C would allow the Federal Reserve 

to fully analyze the information gained 

by splitting data item 1.e on Schedule 

HC–L. Lending by nondepository 

financial institutions was a key 

characteristic of the recent credit cycle 

and many such institutions failed, but 

little information existed on the 

exposure of the banking system to those 

firms as this information was obscured 

by the current structure of the FR Y–9C 

and Call Report loan schedule. The 

proposed addition of separate data items 

for unused commitments to financial 

institutions and loans to nondepository 

financial institutions, together with the 

existing data on loans to depository 

institutions, would allow supervisors 

and other interested parties to more 

closely monitor the exposure of 

individual BHCs to financial 

institutions and to assess the impact 

that changes in the credit availability to 

this sector have on the economy. 

Two commenters addressed these 

proposed revisions to Schedules HC–L 

and HC–C. The bankers’ organization 

indicated that the proposed revisions 

relating to additional categories of 

unused commitments were acceptable. 

One bank expressed support for the 

proposed reporting of unused 

commitments and loans to 

nondepository financial institutions, 

agreeing that this information would be 

useful to the Federal Reserve and the 

banking agencies in their monitoring of 

lending activity. However, this bank 

also asserted that the instructions for 

categorizing loans in Schedule HC–C 

‘‘are complex, require considerable 

effort, and introduce the potential for 

inconsistency across reporting 

institutions.’’ The bank asked the 

Federal Reserve and the banking 

agencies to consider simplifying the 

loan categorization requirements by ‘‘(1) 

consolidating reporting categories, 

where feasible, (2) creating a decision 

tree matrix with prioritization for 

competing criteria, and (3) 

recommending the use of more objective 

criteria (such as SIC classifications).’’ 

The Federal Reserve periodically 

reviews the reporting categories used in 

Schedule HC–C and have found that 

additional loan categories are needed to 

better monitor the credit risk profiles of 

individual institutions and the industry 

as a whole, to assess credit availability, 

and to conduct the Federal Reserve’s 

other activities. When assigning loans to 

the loan categories in Schedule HC–C, 

the schedule already assigns priority to 

loans secured by real estate, regardless 

of borrower loan purpose. Loans that do 

not meet the definition of the term loan 

secured by real estate are then 

categorized by borrower or purpose. The 

Federal Reserve believes the remaining 

loan categories (e.g., loans to depository 

institutions; commercial and industrial 

loans; loans to individuals for 

household, family, and other personal 

expenditures; and loans to foreign 

governments and official institutions) 

are sufficiently distinct from one 

another. The instructions for Schedule 

HC–C provide detailed descriptions of 

the types of loans and borrowers that 

fall within the scope of each loan 

category. 

C. Effect of New Accounting Standards 

on Schedule HC–S, Servicing, 

Securitization, and Asset Sale Activities 

On June 12, 2009, the Financial 

Accounting Standards Board (FASB) 

issued FAS Statements Nos. 166 and 

167, which revise the existing standards 

governing the accounting for financial 

asset transfers and the consolidation of 

variable interest entities. FAS Statement 

No. 166 eliminates the concept of a 

qualifying special-purpose entity, 

changes the requirements for 

derecognizing financial assets, and 

requires additional disclosures. FAS 

Statement No. 167 changes how a 

company determines when an entity 

that is insufficiently capitalized or is not 

controlled through voting (or similar 

rights) should be consolidated. This 

consolidation determination is based 

on, among other things, an entity’s 

purpose and design and a company’s 

ability to direct the activities of the 

entity that most significantly impact the 

entity’s economic performance.2 In 

general, the revised standards took 

effect January 1, 2010. The standards are 

expected to cause a substantial volume 

of assets in banking organizationsponsored entities associated with 

securitization and structured finance 

activities to be brought onto BHCs 

balance sheets. 

The Federal Reserve currently collects 

data on BHCs’ securitization and 

structured finance activities in Schedule 

HC–S, Servicing, Securitization, and 

Asset Sale Activities. The Federal 

Reserve will continue to collect 

Schedule HC–S after the effective date 

of FAS Statements Nos. 166 and 167 

and BHCs should continue to complete 

this schedule in accordance with its 

existing instructions, taking into 

account the changes in accounting 

brought about by these two FASB 

statements. In this regard, data items 1 

through 8 of Schedule HC–S involve the 

reporting of information for 

securitizations that the reporting BHC 

has accounted for as sales. Therefore, 

after the effective date of FAS 

Statements Nos. 166 and 167, a BHC 

should report information in data items 

1 through 8 only for those 

securitizations for which the transferred 

assets qualify for sale accounting or are 

otherwise not carried as assets on the 

BHC’s consolidated balance sheet. Thus, 

if a securitization transaction that 

qualified for sale accounting prior to the 

effective date of FAS Statements Nos. 

166 and 167 must be brought back onto 

the reporting BHC’s consolidated 

balance sheet upon adoption of these 

statements, the BHC would no longer 

report information about the 

securitization in data items 1 through 8 

of Schedule HC–S. 

Data items 11 and 12 of Schedule HC– 

S are applicable to assets that the 

reporting BHC has sold with recourse or 

other seller-provided credit 

enhancements, but has not securitized. 

In Memorandum item 1 of Schedule 

HC–S, a BHC reports certain transfers of 

small business obligations with recourse 

that qualifies for sale accounting. The 

scope of these data items will continue 

to be limited to such sold financial 

assets after the effective date of FAS 

Statements Nos. 166 and 167. In 

Memorandum item 2 of Schedule HC– 

S, a BHC currently reports the 

outstanding principal balance of loans 

and other financial assets that it services 

for others when the servicing has been 

purchased or when the assets have been 

originated or purchased and 

subsequently sold with servicing 

retained. Thus, after the effective date of 

FAS Statements Nos. 166 and 167, a 

BHC should continue to report retained 

servicing for those assets or portions of 

assets reported as sold as well as 

purchased servicing in Memorandum 

item 2. Finally, Memorandum item 3 of 

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9216 Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Notices 

backed commercial paper conduits 

regardless of whether the reporting BHC 

must consolidate the conduit in 

accordance with FASB Interpretation 

No. 46(R). This will continue to be the 

case after the effective date of FAS 

Statement No. 167, which amended this 

FASB interpretation. 

The Federal Reserve plans to evaluate 

the disclosure requirements in FAS 

Statements Nos. 166 and 167 and the 

disclosure practices that develop in 

response to these requirements. This 

evaluation will assist the Federal 

Reserve in determining the need for 

revisions to Schedule HC–S that will 

improve its ability to assess the nature 

and scope of BHCs’ involvement with 

securitization and structured finance 

activities, including those accounted for 

as sales and those accounted for as 

secured borrowings. Such revisions, 

which would not be implemented 

before March 2011, would be 

incorporated into a formal proposal that 

the Federal Reserve would then publish 

with a request for comment in 

accordance with the requirements of the 

Paperwork Reduction Act of 1995 

(PRA). 

The bankers’ organization commented 

on the reporting of information 

associated with securitization and 

structured finance activities and 

recommended that information be 

required in Schedule HC–S for assets 

that must be consolidated under FAS 

Statements Nos. 166 and 167 that are 

held as securities by third parties as 

well as any applicable loan loss 

allowances and related deferred tax 

assets. The Federal Reserve will 

consider these recommendations as we 

evaluate our data needs with respect to 

on-balance-sheet securitizations and 

structured finance transactions. Any 

resulting potential new reporting 

requirements would be incorporated 

into the formal proposal mentioned 

above. 

D. Assets Covered by FDIC Loss-Sharing 

Agreements 

The bankers’ organization requested 

that the Federal Reserve revise the FR 

Y–9C to collect information on losssharing agreements with the FDIC even 

though this had not been proposed by 

the Federal Reserve. The organization 

noted that there is currently no 

guidance on how a BHC that acquires a 

failed bank should report any losssharing agreement in the FR Y–9C. It 

also stated that the FR Y–9C does not 

provide users with a ‘‘readily accessible 

summary of the [bank holding 

company’s] net exposures on assets that 

are subject to loss-share agreements.’’ 

The organization observed that ‘‘[t]his 

will become an increasingly important 

long-term and more common reporting 

issue as additional failed banks are 

acquired from the FDIC under a lossshare agreement.’’ 

Under loss sharing, the FDIC agrees to 

absorb a portion of the loss on a 

specified pool of a failed institution’s 

assets in order to maximize asset 

recoveries and minimize the FDIC’s 

losses. In general, the FDIC will 

reimburse 80 percent of losses incurred 

by an acquiring institution on covered 

assets over a specified period of time up 

to a stated threshold amount, with the 

acquirer absorbing 20 percent. Any 

losses above the stated threshold 

amount will be reimbursed by the FDIC 

at 95 percent of the losses booked by the 

acquirer. Over the past year, the FDIC 

has entered into loss-sharing agreements 

with acquiring institutions in 

connection with approximately 80 

failed banks and thrifts. Some acquiring 

institutions have been involved in 

multiple failed institution acquisitions. 

The continued use of loss-sharing 

agreements is expected in connection 

with the resolution of failures of insured 

institutions by the FDIC. Assets covered 

by loss-sharing agreements include, but 

are not limited to, loans, other real 

estate, and debt securities. 

As the bankers’ organization 

indicated, the FR Y–9C does not include 

a ‘‘readily accessible summary’’ of assets 

that reporting BHCs have acquired from 

failed institutions that are covered by 

FDIC loss-sharing agreements. Any 

covered loans and leases that are past 

due 30 days or more or are in 

nonaccrual status are reportable in data 

items 11 and 11.a of Schedule HC–N, 

Past Due and Nonaccrual Loans, Leases, 

and Other Assets, as loans and leases 

that are wholly or partially guaranteed 

by the U.S. Government. However, these 

data items would also include loans and 

leases guaranteed by other U.S. 

Government agencies (such as the Small 

Business Administration and the 

Federal Housing Administration) that 

are past due 30 days or more or are in 

nonaccrual status and they would 

exclude loans and leases covered by 

FDIC loss-sharing agreements that do 

not meet these past due or nonaccrual 

reporting conditions as of the report 

date. Thus, the amount of covered loans 

and leases is not readily identifiable 

from the FR Y–9C and the amount of 

other covered assets cannot be 

determined at all from the FR Y–9C. 

The Federal Reserve agrees with the 

bankers’ organization that the reporting 

of summary data on covered assets 

would be beneficial to FR Y–9C report 

users and to BHCs holding covered 

assets. Therefore, the Federal Reserve 

will add such a summary to FR Y–9C 

Schedule HC–M, Memoranda, effective 

as of March 31, 2010. In this summary, 

BHCs that have entered into loss-sharing 

agreements with the FDIC will 

separately report the carrying amounts 

of loans and leases, other real estate 

owned, debt securities, and other assets 

covered by such agreements. The 

Federal Reserve will also consider 

whether the collection of additional 

information concerning covered assets 

would be warranted and, if so, it would 

be incorporated into a formal proposal 

that the Federal Reserve would then 

publish with a request for comment in 

accordance with the requirements of the 

PRA. 

2. Report title: Financial Statements of 

U.S. Nonbank Subsidiaries of U.S. Bank 

Holding Companies. 

Agency form number: FR Y–11. 

OMB control number: 7100–0244. 

Frequency: Quarterly and annually. 

Reporters: BHCs. 

Estimated annual reporting hours: FR 

Y–11 (quarterly), 15,504 hours; and FR 

Y–11 (annual), 1,802 hours. 

Estimated average hours per response: 

FR Y–11 (quarterly), 6.80 hours; and FR 

Y–11 (annual), 6.80 hours. 

Number of respondents: FR Y–11 

(quarterly), 570; and FR Y–11 (annual), 

265. 

General description of report: This 

information collection is mandatory (12 

U.S.C. §§ 1844(c)). Confidential 

treatment is not routinely given to the 

data in these reports. However, 

confidential treatment for the reporting 

information, in whole or in part, can be 

requested in accordance with the 

instructions to the form, pursuant to 

sections (b)(4), (b)(6)and (b)(8) of the 

Freedom of Information Act (5 U.S.C. 

552(b)(4), (b)(6) and (b)(8)). 

Abstract: The FR Y–11 reports collect 

financial information for individual 

non-functionally regulated U.S. 

nonbank subsidiaries of domestic BHCs. 

BHCs file the FR Y–11 on a quarterly or 

annual basis according to filing criteria. 

The FR Y–11 data are used with other 

BHC data to assess the condition of 

BHCs that are heavily engaged in 

nonbanking activities and to monitor 

the volume, nature, and condition of 

their nonbanking operations. 

Current Actions: On September 25, 

2009, the Federal Reserve published a 

notice in the Federal Register (74 FR 

48960) requesting public comment for 

60 days on the revision, without 

extension, of the FR Y–11. The 

comment period for this notice expired 

on November 24, 2009. The Federal 

Reserve did not receive any comments; 

the revisions will be implemented as 

proposed. 

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Federal Register / Vol. 75, No. 39 / Monday, March 1, 2010 / Notices 9217 

3. Report title: Financial Statements of 

Foreign Subsidiaries of U.S. Banking 

Organizations. 

Agency form number: FR 2314. 

OMB control number: 7100–0073. 

Frequency: Quarterly and annually. 

Reporters: U.S. state member banks 

(SMBs), BHCs, and Edge or agreement 

corporations. 

Estimated annual reporting hours: FR 

2314 (quarterly), 15,365 hours; and FR 

2314 (annual), 1,313 hours. 

Estimated average hours per response: 

FR 2314 (quarterly), 6.60 hours; and FR 

2314 (annual), 6.60 hours. 

Number of respondents: FR 2314 

(quarterly), 582; and FR 2314 (annual), 

199. 

General description of report: This 

information collection is mandatory (12 

U.S.C. §§ 324, 602, 625, and 1844(c)). 

Confidential treatment is not routinely 

given to the data in these reports. 

However, confidential treatment for the 

reporting information, in whole or in 

part, can be requested in accordance 

with the instructions to the form, 

pursuant to sections (b)(4), (b)(6) and 

(b)(8) of the Freedom of Information Act 

(5 U.S.C. §§ 552(b)(4) (b)(6) and (b)(8)). 

Abstract: The FR 2314 reports collect 

financial information for nonfunctionally regulated direct or indirect 

foreign subsidiaries of U.S. SMBs, Edge 

and agreement corporations, and BHCs. 

Parent organizations (SMBs, Edge and 

agreement corporations, or BHCs) file 

the FR 2314 on a quarterly or annual 

basis according to filing criteria. The FR 

2314 data are used to identify current 

and potential problems at the foreign 

subsidiaries of U.S. parent companies, 

to monitor the activities of U.S. banking 

organizations in specific countries, and 

to develop a better understanding of 

activities within the industry, in 

general, and of individual institutions, 

in particular. 

Current Actions: On September 25, 

2009, the Federal Reserve published a 

notice in the Federal Register (74 FR 

48960) requesting public comment for 

60 days on the revision, without 

extension, of the FR 2314. The comment 

period for this notice expired on 

November 24, 2009. The Federal 

Reserve did not receive any comments; 

the revisions will be implemented as 

proposed. 

4. Report title: Financial Statements of 

U.S. Nonbank Subsidiaries Held by 

Foreign Banking Organizations. 

Agency form number: FR Y–7N. 

OMB control number: 7100–0125. 

Frequency: Quarterly and annually. 

Reporters: Foreign banking 

organizations (FBOs). 

Estimated annual reporting hours: FR 

Y–7N (quarterly), 4,787 hours; and FR 

Y–7N (annual), 1,387 hours. 

Estimated average hours per response: 

FR Y–7N (quarterly), 6.8 hours; and FR 

Y–7N (annual), 6.8 hours. 

Number of respondents: FR Y–7N 

(quarterly), 176; and FR Y–7N (annual), 

204. 

General description of report: This 

information collection is mandatory (12 

U.S.C. 1844(c), 3106(c), and 3108). 

Confidential treatment is not routinely 

given to the data in these reports. 

However, confidential treatment for 

information, in whole or in part, on any 

of the reporting forms can be requested 

in accordance with the instructions to 

the form, pursuant to sections (b)(4) and 

(b)(6) of the Freedom of Information Act 

(5 U.S.C. 522(b)(4) and (b)(6)). 

Abstract: The FR Y–7N collects 

financial information for nonfunctionally regulated U.S. nonbank 

subsidiaries held by FBOs other than 

through a U.S. BHC, U.S. FHC, or U.S. 

bank. FBOs file the FR Y–7N on a 

quarterly or annual basis based on size 

thresholds. 

Current Actions: On September 25, 

2009, the Federal Reserve published a 

notice in the Federal Register (74 FR 

48960) requesting public comment for 

60 days on the revision, without 

extension, of the FR Y–7N. The 

comment period for this notice expired 

on November 24, 2009. The Federal 

Reserve did not receive any comments; 

the revisions will be implemented as 

proposed. 

Board of Governors of the Federal Reserve 

System, February 24, 2010. 

Jennifer J. Johnson, 

Secretary of the Board. 

[FR Doc. 2010–4118 Filed 2–26–10; 8:45 am] 

BILLING CODE 6210–01–P 

DEPARTMENT OF DEFENSE 

GENERAL SERVICES 

ADMINISTRATION 

NATIONAL AERONAUTICS AND 

SPACE ADMINISTRATION 

[OMB Control No. 9000–00XX] 

Submission for OMB Review; 

Information Regarding Responsibility 

Matters 

AGENCY: Department of Defense (DOD), 

General Services Administration (GSA), 

and National Aeronautics and Space 

Administration (NASA). 

ACTION: Notice of request for public 

comments regarding a new OMB 

information clearance. 

SUMMARY: Under the provisions of the 

Paperwork Reduction Act of 1995 (44 

U.S.C. Chapter 35), the Regulatory 

Secretariat will be submitting to the 

Office of Management and Budget 

(OMB) a request to review and approve 

a new information collection 

requirement regarding Information 

Regarding Responsibility Matters. 

Public comments are particularly 

invited on: Whether this collection of 

information is necessary for the proper 

performance of functions of the FAR, 

and whether it will have practical 

utility; whether our estimate of the 

public burden of this collection of 

information is accurate, and based on 

valid assumptions and methodology; 

ways to enhance the quality, utility, and 

clarity of the information to be 

collected; and ways in which we can 

minimize the burden of the collection of 

information on those who are to 

respond, through the use of appropriate 

technological collection techniques or 

other forms of information technology. 

DATES: Submit comments on or before 

March 31, 2010. 

ADDRESSES: Submit comments regarding 

this burden estimate or any other aspect 

of this collection of information, 

including suggestions for reducing this 

burden to GSA Desk Officer, OMB, 

Room 10236, NEOB, Washington, DC 

20503, and a copy to the Regulatory 

Secretariat (MVCB), General Services 

Administration, 1800 F Street, NW., 

Room 4041, Washington, DC 20405. 

Please cite OMB Control No. 9000– 

00XX, Information Regarding 

Responsibility Matters, in all 

correspondence. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Millisa Gary, Procurement Analyst, 

Contract Policy Branch, at (202) 501– 

0699 or millisa.gary@gsa.gov. 

SUPPLEMENTARY INFORMATION: 

A. Purpose 

The collection of new information is 

in compliance with section 872 of the 

Duncan Hunter National Defense 

Authorization Act of 2009 (Pub. L. 110– 

417), enacted on October 14, 2008. 

Section 872 of the Act requires the 

General Services Administration (GSA) 

to develop and maintain a database 

containing specific information on the 

integrity and performance of covered 

Federal agency contractors and grantees. 

Section 872 defines a covered person 

as any person awarded a Federal agency 

contract or grant in excess of $500,000 

and any person awarded ‘‘such other 

category or categories of Federal agency 

contract as the FAR may provide * * *’’ 

Information to be included in the data 

system is listed in section 872 and must 

cover the most recent five-year period 

for— 

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