Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013 / Notices 1305 

[FR Doc. 2013–00167 Filed 1–7–13; 8:45 am] 

BILLING CODE C 

DEPARTMENT OF THE TREASURY 

Office of the Comptroller of the 

Currency 

Agency Information Collection 

Activities: Submission for OMB 

Review; Comment Request 

AGENCY: Office of the Comptroller of the 

Currency, Treasury. 

ACTION: Notice and request for comment. 

SUMMARY: The OCC, as part of its 

continuing effort to reduce paperwork 

and respondent burden, invites the 

general public and other Federal 

agencies to take this opportunity to 

comment on a continuing information 

collection, as required by the Paperwork 

Reduction Act of 1995. An agency may 

not conduct or sponsor, and a 

respondent is not required to respond 

to, an information collection unless it 

displays a currently valid OMB control 

number. The OCC is soliciting comment 

concerning its information collection 

titled, ‘‘Leasing.’’ The OCC is also giving 

notice that it has sent the collection to 

OMB for review. 

DATES: Comments must be received by 

February 7, 2013. 

ADDRESSES: Communications Division, 

Office of the Comptroller of the 

Currency, Public Information Room, 

Mail Stop 6W–11, Attention: 1557– 

0206, Washington, DC 20219. In 

addition, comments may be sent by fax 

to (202) 649–5709 or by electronic mail 

to regs.comments@occ.treas.gov. You 

can inspect and photocopy the 

comments at the OCC, 400 7th Street 

SW., Washington, DC 20219. For 

security reasons, the OCC requires that 

visitors make an appointment to inspect 

comments. You may do so by calling 

(202) 649–6700. 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, you should send a copy 

of your comments to OCC Desk Officer, 

1557–0206, by mail to U.S. Office of 

Management and Budget, 725, 17th 

Street NW., #10235, Washington, DC 

20503, or by electronic mail to oira 

submission@omb.eop.gov. 

FOR FURTHER INFORMATION CONTACT: You 

can request additional information or a 

copy of the collection from Johnny 

Vilela or Mary H. Gottlieb, OCC 

Clearance Officers, (202) 8649–5490, 

Legislative and Regulatory Activities 

Division, Office of the Comptroller of 

the Currency, 250 E Street SW., 

Washington, DC 20219. 

SUPPLEMENTARY INFORMATION: 

The OCC is proposing to extend OMB 

approval of the following information 

collection: 

Title: Leasing (12 CFR Part 23). 

OMB Number: 1557–0206. 

Description: This submission covers 

an existing regulation and involves no 

change to the regulation or to the 

information collection requirements. 

The OCC requests only that OMB extend 

the expiration date. 

Information Collection Requirements 

Found in 12 CFR Part 23 

12 CFR 23.4(c) 

Under 12 CFR 23.4(c), national banks 

must liquidate or re-lease personal 

property that is no longer subject to 

lease (off-lease property) within five 

years from the date of the lease 

expiration. If a bank wishes to extend 

the five-year holding period for up to an 

additional five years, it must obtain 

OCC approval. Permitting a bank to 

extend the holding period may result in 

cost savings to national banks. It also 

provides flexibility for a bank that 

experiences unusual or unforeseen 

conditions which would make it 

imprudent to dispose of the off-lease 

property. Section 23.4(c) requires a bank 

seeking an extension to provide a 

clearly convincing demonstration as to 

why an additional holding period is 

necessary. In addition, a bank must 

value off-lease property at the lower of 

current fair market value or book value 

promptly after the property comes offVerDate Mar<15>2010 19:11 Jan 07, 2013 Jkt 229001 PO 00000 Frm 00110 Fmt 4703 Sfmt 4703 E:\FR\FM\08JAN1.SGM 08JAN1

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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. 


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