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###### Department of the Treasury

###### Office of the Comptroller of the Currency

# 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 off-                          ( print page 1306)                        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