1306 Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Notices 

1 Insured Federal depository institution means an 

entity that is a Federal depository institution and 

an insured depository institution under the Federal 

Deposit Insurance Act. See 12 U.S.C. 1813(c)(2) and 

(4). National banks, Federal savings associations 

and insured Federal Branches are insured Federal 

depository institutions. 

2 12 U.S.C. 1813(c)(4). 

3Except as otherwise specified, this notice refers 

to both swaps and security-based swaps as swaps, 

and both swap dealers and security-based swap 

dealers as swap dealers. 

4 Guidance on the Effective Date of Section 716, 

77 FR 27465 (May 10, 2012). 

5See Dodd-Frank Act section 716(f), 15 U.S.C. 

8305(f). 

6The OCC is the appropriate Federal banking 

agency of Federal depository institutions. 12 U.S.C. 

1813(q)(1). 

lease. These requirements enable the 

OCC to ensure that a bank is not holding 

the property for speculative reasons and 

that the value of the property is 

recorded in accordance with generally 

accepted accounting principles (GAAP). 

Section 23.5 

Under 12 CFR 23.5, leases are subject 

to the lending limits prescribed by 12 

U.S.C. 84, as implemented by 12 CFR 

part 32, or, if the lessee is an affiliate of 

the bank, to the restrictions on 

transactions with affiliates prescribed by 

12 U.S.C. 371c and 371c–1. See 12 CFR 

23.6. Twelve U.S.C. 24 contains two 

separate provisions authorizing a 

national bank to acquire personal 

property for purposes of lease financing. 

Twelve U.S.C. 24(Seventh) authorizes 

leases of personal property (Section 

24(Seventh) (Leases) if the lease serves 

as the functional equivalent of a loan. 

See 12 CFR 23.20. A national bank may 

also acquire personal property for 

purposes of lease financing under the 

authority of 12 U.S.C. 24(Tenth) (CEBA 

Leases). Section 23.5 requires that if a 

bank enters into both types of leases, its 

records must distinguish between the 

two types of leases. This information is 

required to prove that the national bank 

is complying with the limitations and 

requirements applicable to the two 

types of leases. 

National banks use the information to 

ensure their compliance with applicable 

Federal banking law and regulations 

and accounting principles. The OCC 

uses the information in conducting bank 

examinations and as an auditing tool to 

verify bank compliance with laws and 

regulations. In addition, the OCC uses 

national bank requests for permission to 

extend the holding period for off-lease 

property to ensure national bank 

compliance with relevant laws and 

regulations and to ensure bank safety 

and soundness. 

Type of Review: Extension of a 

currently approved collection. 

Affected Public: Individuals; 

Businesses or other for-profit. 

Estimated Number of Respondents: 

370. 

Estimated Total Annual Responses: 

370. 

Frequency of Response: On occasion. 

Estimated Total Annual Burden: 685. 

The OCC published this collection for 

60 days of comment on October 5, 2012 

(77 FR 61050). No comments were 

received. Comments continue to be 

invited on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information has practical utility; 

(b) The accuracy of the agency’s 

estimate of the burden of the collection 

of information; 

(c) Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

(d) Ways to minimize the burden of 

the collection on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology; and 

(e) Estimates of capital or start-up 

costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 

Dated: January 2, 2013. 

Michele Meyer, 

Assistant Director, Legislative and Regulatory 

Activities Division. 

[FR Doc. 2013–00091 Filed 1–7–13; 8:45 am] 

BILLING CODE 4810–33–P 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

[Docket ID OCC–2013–0001] 

Transition Period Under Section 716 of 

the Dodd-Frank Wall Street Reform and 

Consumer Protection Act 

AGENCY: Office of the Comptroller of the 

Currency, Department of the Treasury. 

ACTION: Notice of guidance. 

SUMMARY: The Office of the Comptroller 

of the Currency (OCC) is notifying 

insured Federal depository institutions 1

that are or may become swap dealers 

that the OCC is prepared to consider 

favorably requests for a transition period 

pursuant to section 716(f) of the DoddFrank Act, provided that such requests 

conform to the procedures and 

conditions established in this notice. 

DATES: This guidance is effective 

immediately. Written requests for 

transition periods should be submitted 

to the OCC by January 31, 2013. 

FOR FURTHER INFORMATION CONTACT: 

Roman Goldstein, Senior Attorney, Ted 

Dowd, Assistant Director, or Ellen 

Broadman, Director, Securities and 

Corporate Practices Division, (202) 649– 

5510, 400 7th St. SW., Washington, DC 

20219. 

SUPPLEMENTARY INFORMATION: 

A. Background 

Section 716 of the Dodd-Frank Wall 

Street Reform and Consumer Protection 

Act (Dodd-Frank Act) prohibits 

providing Federal assistance to swaps 

entities, a term that includes Federal 

depository institutions 2 that are swap 

dealers.3 The prohibition does not apply 

to insured depository institutions that 

limit their swap activities to those 

activities specified in section 716(d) 

(conforming swap activities). The OCC, 

Board of Governors of the Federal 

Reserve System (Board), and Federal 

Deposit Insurance Corporation (FDIC) 

jointly issued guidance that section 

716’s effective date is July 16, 2013.4

Section 716(f) provides that the 

appropriate Federal banking agency 

shall permit a transition period, as 

appropriate, for insured depository 

institution swap entities to divest or 

cease nonconforming swap activities.5

The prohibition on Federal assistance 

does not apply during this transition 

period. The transition period, which 

begins on the effective date, initially 

may be up to 24 months, as determined 

by the insured depository institution’s 

appropriate Federal banking agency 6 in 

consultation with the Commodity 

Futures Trading Commission (CFTC) 

and the Securities and Exchange 

Commission (SEC). The appropriate 

Federal banking agency, after consulting 

with the CFTC and SEC, may extend the 

transition period for up to one 

additional year. 

In establishing the length of a 

transition period for an insured 

depository institution, the appropriate 

Federal banking agency must take into 

account and make written findings 

regarding the potential impact of the 

divestiture or cessation of 

nonconforming swap activities on the 

institution’s (1) mortgage lending, (2) 

small business lending, (3) job creation, 

and (4) capital formation versus the 

potential negative impact on insured 

depositors and the FDIC’s Deposit 

Insurance Fund (DIF). The appropriate 

Federal banking agency may consider 

such other factors as it deems 

appropriate. 


srobinson on DSK4SPTVN1PROD with 
Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Notices 1307 

7Furthermore, mandatory clearing rules are not 

in place for many standardized credit default swaps 

(CDS) and the market has not moved to cleared CDS 

for a variety of products. Section 716(d)(3) provides 

that an insured depository institution may act as a 

swaps entity for CDS if they are cleared. 

8The Commodity Futures Trading Commission 

recently exempted certain swap dealers from 

certain requirements imposed by title VII of the 

Dodd-Frank Act in order to ensure an orderly 

transition to the new regulatory regime and to 

provide greater legal certainty to market 

participants. Final Exemptive Order Regarding 

Compliance with Certain Swap Regulation, at 58 

(Dec. 21, 2012), available at http://www.cftc.gov/ 

ucm/groups/public/@newsroom/documents/file/ 

federalregister122112.pdf. 

9Transition periods will provide appropriate time 

for institutions to negotiate and document new 

master swap agreements individually with each of 

their clients, customers, and counterparties as 

necessary for section 716 conformance. 

Additionally, a transition period will provide more 

time for the transfer of non-conforming swaps 

activities to affiliates, including in some cases the 

establishment of new affiliates entailing requisite 

regulatory approvals from the SEC, CFTC, and state 

authorities, and in all cases the transfer of backoffice functions and the making of necessary 

arrangements for the custody of customer margin 

collateral. 

10An insured depository institution whose swap 

activities are presently limited to conforming swap 

activities is not eligible for a transition period 

because it would not be subject to the prohibition 

on Federal assistance. See Dodd-Frank Act section 

716(f), 15 U.S.C. 8305(f). 

11See Further Definition of Swap Dealer, 77 FR 

30595 (May 23, 2012). 

12See Dodd-Frank Act section 716(f), 15 U.S.C. 

8305(f). 

B. Transition Period 

For the following reasons, the OCC 

has concluded that transition periods 

should be provided to insured Federal 

depository institutions to provide 

sufficient opportunity for institutions to 

conform their swaps activities in an 

orderly manner. First, section 716 

assumes a regulatory framework that is 

not yet complete. Further development 

of the Title VII regulatory framework is 

necessary for insured Federal depository 

institutions to make well-informed 

determinations concerning business 

restructurings that may be necessary for 

section 716 conformance.7 Second, the 

provision of transition periods while the 

Title VII regulatory framework 

continues to develop will provide 

regulatory certainty for insured Federal 

depository institutions in the near term 

and will mitigate potential disruptions 

to client services.8 Third, transition 

periods will mitigate operational and 

credit risks for insured Federal 

depository institutions.9

Section 716 anticipates that transition 

periods will be provided to avoid 

unwanted adverse consequences from 

premature implementation of section 

716. For the reasons discussed above, 

the OCC believes that implementation of 

section 716 without transition periods 

would cause unwanted adverse 

consequences and that transition 

periods therefore are appropriate. 

Accordingly, an insured Federal 

depository institution that is or will be 

a swaps entity and that seeks a 

transition period for its nonconforming 

swaps activities should formally request 

a transition period from the OCC.10 The 

OCC is prepared to consider such 

requests favorably, provided that the 

requests conform to the guidance 

provided below. 

Each request must be written and 

specify the transition period appropriate 

to the institution, up to a two-year 

transition period commencing from July 

16, 2013. The request must also discuss: 

1. The institution’s plan for 

conforming its swap activities; 

2. How the requested transition 

period would mitigate adverse effects on 

mortgage lending, small business 

lending, job creation, and capital 

formation; 

3. The extent to which the requested 

transition period could have a negative 

impact on the institution’s insured 

depositors and the DIF; 

4. Operational risks and other safety 

and soundness concerns that a 

transition period would mitigate. 

5. Other facts that the institution 

believes the OCC should consider. 

An insured Federal depository 

institution that is unsure if or when it 

will be or become a swaps entity may 

request a transition period. The request 

must contain the elements described 

above and additionally explain why the 

institution believes it might be or 

become a swaps entity under the CFTC’s 

definition of swap dealer or the SEC’s 

definition of security-based swap 

dealer.11 The OCC may require a 

requesting insured Federal depository 

institution to provide additional 

information before establishing a 

transition period. The OCC may impose 

such conditions on a transition period 

as it deems necessary and appropriate.12

Authority: 15 U.S.C. 8305. 

Dated: December 31, 2012. 

Thomas J. Curry, 

Comptroller of the Currency. 

[FR Doc. 2013–00093 Filed 1–7–13; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF THE TREASURY 

United States Mint 

Privacy Act of 1974; Systems of 

Records 

AGENCY: United States Mint, Treasury. 

ACTION: Notice of systems of records. 

SUMMARY: In accordance with the 

requirements of the Privacy Act of 1974, 

as amended, 5 U.S.C. 552a, the United 

States Mint, Treasury, is publishing its 

inventory of Privacy Act systems of 

records. 

SUPPLEMENTARY INFORMATION: Pursuant 

to the Privacy Act of 1974 (5 U.S.C. 

552a) and the Office of Management and 

Budget (OMB), Circular No. A–130, the 

United States Mint has completed a 

review of its Privacy Act systems of 

records notices to identify changes that 

will more accurately describe these 

records. The systems of records were 

last published in their entirety on July 

22, 2008, at 73 FR 42662–42670. 

The changes throughout the 

document are editorial in nature and 

reflect non-substantive updates to the 

United States Mint’s management and 

retention of records. 

Systems Covered by This Notice 

This notice covers all systems of 

records maintained by the United States 

Mint as of January 8, 2013. The system 

notices are reprinted in their entirety 

following the Table of Contents. 

Veronica Marco, 

Acting Deputy Assistant Secretary for Privacy, 

Transparency, and Records. 

Table of Contents 

United States Mint 

UNITED STATES MINT .001—Cash 

Receivable Accounting Information 

System. 

UNITED STATES MINT .003—Employee and 

Former Employee Travel and Training 

Accounting Information System. 

UNITED STATES MINT .004—Occupational 

Safety and Health, Accident and Injury 

Records, and Claims for Injuries or 

Damage Compensation Records. 

UNITED STATES MINT .005—EmployeeSupervisor Performance Evaluation, 

Counseling, and Time and Attendance 

Records. 

UNITED STATES MINT .007—General 

Correspondence. 

UNITED STATES MINT .008—Employee 

Background Investigations Files. 

UNITED STATES MINT .009—Retail Sales 

System (RSS); Customer Mailing List; 

Order Processing Records for Coin Sets, 

Medals and Numismatic Items; Records 

of Undelivered Orders; and Product 

Descriptions, Availability and Inventory. 

UNITED STATES MINT .012—Union and 

Agency Negotiated Grievances; Adverse 

Personnel Actions; Discrimination 

Complaints; Complaints and Actions 

before Arbitrators, Administrative 

Tribunals and Courts (Third Parties). 

United States Mint 


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