Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 61563 

Fillmore & Western Railroad Co. 

[Waiver Petition Docket Number FRA–2010– 

0139] 

The Fillmore & Western Railroad 

Company (FWRY) seeks a waiver of 

compliance from certain provisions of 

the Railroad Freight Car Safety 

Standards, 49 CFR 215.303, which 

requires stenciling of restricted cars; as 

well as 49 CFR 224.3, which requires 

Reflectorization for freight cars. FWRY 

owns sixteen rail cars that are older than 

50 years from their date of original 

construction, and are restricted by the 

provision of 49 CFR 215.203(a). FWRY 

is concurrently seeking special approval 

to continue to use these cars under 

proceeding according to 49 CFR 

215.203(b). 

To support its petition to seek relief 

from the stenciling and reflectorization 

requirements, FWRY states that the cars 

subject to this waiver are only used for 

tourist passengers, films, movies, props, 

still photos and the like. Although 

FWRY is considered a general system 

railroad, these subject cars are not 

interchanged in or with the general 

system, and are not freight revenue cars. 

FWRY asks for this waiver due to the 

fact that the movie and television 

companies, still photographers and the 

like want the cars to be authentic in 

their antiquated and historic look. 

Interested parties are invited to 

participate in these proceedings by 

submitting written views, data, or 

comments. FRA does not anticipate 

scheduling a public hearing in 

connection with these proceedings since 

the facts do not appear to warrant a 

hearing. If any interested party desires 

an opportunity for oral comment, they 

should notify FRA, in writing, before 

the end of the comment period and 

specify the basis for their request. 

All communications concerning these 

proceedings should identify the 

appropriate docket number (e.g., Waiver 

Petition Docket Number FRA–2010– 

0139) and may be submitted by any of 

the following methods: 

• Web site: http:// 

www.regulations.gov. Follow the online 

instructions for submitting comments. 

• Fax: 202–493–2251. 

• Mail: Docket Operations Facility, 

U.S. Department of Transportation, 1200 

New Jersey Avenue, SE., W12–140, 

Washington, DC 20590. 

• Hand Delivery: 1200 New Jersey 

Avenue, SE., Room W12–140, 

Washington, DC 20590, between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. 

Communications received within 45 

days of the date of this notice will be 

considered by FRA before final action is 

taken. Comments received after that 

date will be considered as far as 

practicable. All written communications 

concerning these proceedings are 

available for examination during regular 

business hours (9 a.m.–5 p.m.) at the 

above facility. All documents in the 

public docket are also available for 

inspection and copying on the Internet 

at the docket facility’s Web site at http:// 

www.regulations.gov. 

Anyone is able to search the 

electronic form of any written 

communications and comments 

received into any of our dockets by the 

name of the individual submitting the 

document (or signing the document, if 

submitted on behalf of an association, 

business, labor union, etc.). You may 

review DOT’s complete Privacy Act 

Statement in the Federal Register 

published on April 11, 2000 (65 FR 

19477) or at http://www.dot.gov/ 

privacy.html. 

Issued in Washington, DC, on September 

28, 2010. 

Robert C. Lauby, 

Deputy Associate Administrator. 

[FR Doc. 2010–25002 Filed 10–4–10; 8:45 am] 

BILLING CODE 4910–06–P 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

Proposed Agency Information 

Collection Activities; Comment 

Request—Thrift Financial Report: 

Schedules SC, SO, VA, PD, LD, CC, CF, 

DI, SI, FS, CCR, and VIE 

AGENCY: Office of Thrift Supervision 

(OTS), Treasury. 

ACTION: Notice and request for comment. 

SUMMARY: The Department of the 

Treasury, as part of its continuing effort 

to reduce paperwork and respondent 

burden, invites the general public and 

other federal agencies to comment on 

proposed and continuing information 

collections, as required by the 

Paperwork Reduction Act of 1995, 44 

U.S.C. 3507. Today, the Office of Thrift 

Supervision within the Department of 

the Treasury solicits comments on 

proposed changes to the Thrift Financial 

Report (TFR), Schedule SC— 

Consolidated Statement of Condition, 

Schedule SO—Consolidated Statement 

of Operations, Schedule VA— 

Consolidated Valuation Allowances and 

Related Data, Schedule PD— 

Consolidated Past Due and Nonaccrual, 

Schedule LD—Loan Data, Schedule 

CC—Consolidated Commitments and 

Contingencies, Schedule CF— 

Consolidated Cash Flow Information, 

Schedule DI—Consolidated Deposit 

Information, Schedule SI—Consolidated 

Supplemental Information, Schedule 

FS—Fiduciary and Related Services, 

and Schedule CCR—Consolidated 

Capital Requirement, and on a proposed 

new Schedule VIE—Variable Interest 

Entities. The changes are proposed to 

become effective in March 2011. 

At the end of the comment period, 

OTS will analyze the comments and 

recommendations received to determine 

if it should modify the proposed 

revisions prior to giving its final 

approval. OTS will then submit the 

revisions to the Office of Management 

and Budget (OMB) for review and 

approval. 

DATES: Submit written comments on or 

before December 6, 2010. 

ADDRESSES: Send comments to 

Information Collection Comments, Chief 

Counsel’s Office, Office of Thrift 

Supervision, 1700 G Street, NW., 

Washington, DC 20552; send facsimile 

transmissions to FAX number (202) 

906–6518; send e-mails to 

infocollection.comments@ots.treas.gov; 

or hand deliver comments to the 

Guard’s Desk, east lobby entrance, 1700 

G Street, NW., on business days 

between 9 a.m. and 4 p.m. All 

comments should refer to ‘‘TFR 

Revisions—2011, OMB No. 1550–0023.’’ 

OTS will post comments and the related 

index on the OTS Internet Site at 

http://www.ots.treas.gov. In addition, 

interested persons may inspect 

comments at the Public Reading Room, 

1700 G Street, NW., by appointment. To 

make an appointment, call (202) 906– 

5922, send an e-mail to 

publicinfo@ots.treas.gov, or send a 

facsimile transmission to (202) 906– 

7755. 

FOR FURTHER INFORMATION: You can 

access sample copies of the proposed 

2011 TFR forms on OTS’s Web site at 

http://www.ots.treas.gov or you may 

request them by electronic mail from 

tfr.instructions@ots.treas.gov. You can 

request additional information about 

this proposed information collection 

from James Caton, Acting Managing 

Director, Economic Policy and Financial 

Monitoring and Analysis Division, (202) 

906–5680, Office of Thrift Supervision, 

1700 G Street, NW., Washington, DC 

20552. 

SUPPLEMENTARY INFORMATION: 

Title: Thrift Financial Report. 

OMB Number: 1550–0023. 

Form Number: OTS 1313. 

Abstract: 

OTS is proposing to revise and extend 

for three years the TFR, which is 

currently an approved collection of 

information. 

mstockstill on DSKH9S0YB1PROD with NOTICES

61564 Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 

All OTS-regulated savings 

associations must comply with the 

information collections described in this 

notice. OTS collects this information 

each calendar quarter or less frequently 

if so stated. OTS uses this information 

to monitor the condition, performance, 

and risk profile of individual 

institutions and systemic risk among 

groups of institutions and the industry 

as a whole. Except for selected items, 

these information collections are not 

given confidential treatment. 

Current Actions: 

I. Overview 

OTS last revised the form and content 

of the TFR in a manner that significantly 

affected a substantial percentage of 

institutions in March 2010. Since the 

beginning of 2010 OTS has evaluated its 

ongoing information needs. OTS 

recognizes that the TFR imposes 

reporting requirements, which are a 

component of the regulatory burden 

facing institutions. Another contributor 

to this regulatory burden is the 

examination process, particularly onsite examinations during which 

institution staff spends time and effort 

responding to inquiries and requests for 

information designed to assist 

examiners in evaluating the condition 

and risk profile of the institution. The 

amount of attention that examiners 

direct to risk areas of the institution 

under examination is, in large part, 

determined from TFR data. These data, 

and analytical reports, including the 

Uniform Thrift Performance Report, 

assist examiners in scoping and making 

their preliminary assessments of risks 

during the planning phase of the 

examination. 

A risk-focused review of the 

information from an institution’s TFR 

allows examiners to make preliminary 

risk assessments prior to onsite work. 

The degree of perceived risk determines 

the extent of the examination 

procedures that examiners initially plan 

for each risk area. If the outcome of 

these procedures reveals a different 

level of risk in a particular area, the 

examiner adjusts the examination scope 

and procedures accordingly. 

TFR data are also a vital source of 

information for the monitoring and 

regulatory activities of OTS. Among 

their benefits, these activities aid in 

determining whether the frequency of 

an institution’s examination cycle 

should remain at maximum allowed 

time intervals, thereby lessening overall 

regulatory burden. More risk-focused 

TFR data enhance the ability of OTS to 

assess whether an institution is 

experiencing changes in its risk profile 

that warrant immediate follow-up, 

which may include accelerating the 

timing of an on-site examination. 

In developing this proposal, OTS 

considered a range of potential 

information needs, particularly in the 

areas of credit risk, liquidity, and 

liabilities, and identified those 

additions to the TFR that are most 

critical and relevant to OTS in fulfilling 

its supervisory responsibilities. OTS 

recognizes that increased reporting 

burden will result from the addition to 

the TFR of the new items discussed in 

this proposal. Nevertheless, when 

viewing these proposed revisions to the 

TFR within a larger context, they help 

to enhance the on- and off-site 

supervision capabilities of OTS, which 

assist with controlling the overall 

regulatory burden on institutions. 

OTS also considered the potential 

impacts from the enactment of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (‘‘the DoddFrank Act’’) that the President signed 

into law on July 21. The Dodd-Frank 

Act provides for the combination of the 

OTS into the Office of the Comptroller 

of the Currency 12 to 18 months after 

the enactment date. Employees of the 

OTS on the transfer date will transfer to 

the OCC, the FDIC, or a new Consumer 

Financial Protection Bureau. At this 

point, no decision about a possible 

conversion, if any, from the TFR to the 

Call Report has been made. 

Nevertheless, effort was made to avoid 

increasing differences between the two 

reports. For this reason, the majority of 

the proposed changes mirror changes 

proposed for the Call Report. However, 

proposed are some changes that will 

further and enhance off-site monitoring 

and on-site examination efficiency. 

Thus, OTS is requesting comment on 

the following proposed revisions to the 

TFR that would take effect as of March 

31, 2011, unless otherwise noted. These 

revisions would change the reporting 

frequency for the number and market 

value of collective investment funds and 

common trust funds data reported in 

Memorandum Item 3 of Schedule FS 

from annually to quarterly, revise 

several existing lines, add new lines to 

the TFR, and add a new Schedule VIE, 

Variable Interest Entities. 

For each of the proposed revisions or 

new items, OTS is particularly 

interested in comments from 

institutions on whether the information 

proposed to be collected is readily 

available from existing institution 

records. OTS also invites comment on 

whether there are particular proposed 

revisions for which the new data would 

be of limited relevance for purposes of 

assessing risks in a specific segment of 

the savings association industry. In such 

cases, OTS requests comments on what 

criteria, e.g., an asset size threshold or 

some other measure, we should 

establish for identifying the specific 

segment of the savings association 

industry that we should require to 

report the proposed information. 

Finally, OTS seeks comment on 

whether, for a particular proposed 

revision, there is an alternative 

information set that could satisfy OTS 

data needs and be less burdensome for 

institutions to report than the new or 

revised items that OTS has proposed. 

OTS will consider all of the comments 

it receives as it formulates a final set of 

revisions to the TFR for implementation 

in 2011. The proposed revisions 

include: 

• A breakdown by loan category of 

the existing troubled debt restructurings 

for amounts added in the current 

quarter and amounts included in 

Schedule SC in compliance with 

modified terms in Schedule VA, and for 

troubled debt restructurings that are 

past due 30 to 89 days, 90 days or more, 

or in nonaccrual status in Schedule PD; 

• Additional data for automobile 

loans, including securities backed by 

automobile loans in Schedule SC, 

interest income from automobile loans 

in Schedule SO, automobile loans 

closed, purchased, or sold during the 

quarter in Schedule CF, and the average 

daily balance for automobile loans 

during the quarter in Schedule SI; 

• A breakdown in Schedule SC of the 

existing items for mortgage-backed 

securities between residential and 

commercial securities issued or 

guaranteed by U.S. Government 

agencies and sponsored enterprises and 

those that are not; 

• New items for the amount and 

average daily deposits of nonbrokered 

deposits obtained through the use of 

deposit listing service companies in 

Schedule DI; 

• A breakdown of the existing items 

for deposits of individuals, 

partnerships, and corporations between 

deposits of individuals and deposits of 

partnerships and corporations in 

Schedule DI; 

• A new Schedule VIE, Variable 

Interest Entities, for reporting the 

categories of assets of consolidated 

variable interest entities (VIEs) that can 

be used only to settle the VIEs’ 

obligations, the categories of liabilities 

of consolidated VIEs without recourse to 

the savings association’s general credit, 

and the total assets and total liabilities 

of other consolidated VIEs included in 

the savings association’s total assets and 

total liabilities, with these data reported 

separately for securitization trusts, 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 61565 

asset-backed commercial paper 

conduits, and other VIEs; 

• Breakdowns of loans and 

repossessed assets covered by FDIC losssharing agreements by loan and 

repossessed asset category in Schedule 

SI, new line in Schedule SI for income 

received from or accrued on assets 

covered by the FDIC under loss-sharing 

agreements, and a breakdown in 

Schedule PD of loans past due 30 to 89 

days, 90 days or more, or in nonaccrual 

status covered by FDIC loss-sharing 

agreements; 

• A breakdown of the existing items 

for key person life insurance in 

Schedule SC into items for general 

account and separate account life 

insurance assets; 

• New items for the total assets of 

captive insurance and reinsurance 

subsidiaries in Schedule SI; 

• A change in reporting frequency 

from annual to quarterly for the data 

reported in Schedule FS on collective 

investment funds and common trust 

funds for those savings associations that 

currently report fiduciary assets and 

income annually, i.e., banks with 

fiduciary assets greater than $250 

million or gross fiduciary income 

greater than 10 percent of bank revenue; 

• A new item in Schedule SO for 

service charges on deposit accounts; 

• A new item in Schedule CCR for 

qualifying noncontrolling (minority) 

interests in consolidated subsidiaries; 

• Two new items in Schedule SC for 

trust preferred securities; 

• A more detailed breakdown by loan 

type in Schedule VA of general, 

specific, and total valuation allowances; 

• A breakdown by loan type in 

Schedule VA of classified assets; 

• A new line in Schedule DI for time 

deposits of $100,000 or more with a 

remaining maturity of one year or less; 

• A new line in Schedule DI for 

deposits in foreign offices, Edge and 

Agreement subsidiaries, and IBFs; 

• A breakdown in Schedule SI of the 

amortized cost of held-to-maturity 

securities and the fair value of availablefor-sale securities; 

• Two new lines in Schedule SI for 

farmland loans secured by real estate, 

and loans to finance agricultural 

production and other loans to farmers; 

• Two new lines in Schedule SI for 

Federal Home Loan Bank advances with 

a remaining maturity of one year or less, 

and other borrowings with a remaining 

maturity of one year or less; and 

• A new line in Schedule SI for the 

amount of liabilities from a savings 

association’s trading activities. 

The specific wording of the captions 

for the new or revised TFR data items 

discussed in this proposal and the 

numbering of these data items should be 

regarded as preliminary. 

II. Discussion of Revisions Proposed for 

March 2011 

A. Troubled Debt Restructurings 

OTS is proposing that savings 

associations report additional detail on 

loans that have undergone troubled debt 

restructurings in TFR Schedules VA and 

PD. More specifically, new items are 

proposed for Schedule VA under two 

columns for the amount of troubled debt 

restructured during the current quarter 

(odd-numbered lines) and the amount of 

troubled debt restructured that is 

included in Schedule SC in compliance 

with the modified terms (evennumbered lines): 

VA211, VA212 Construction Loans 

(Total of VA213–VA218): 

VA213, VA214 1–4 Dwelling Units; 

VA215, VA216 Multifamily (5 or 

more) Dwelling Units; 

VA217, VA218 Nonresidential 

Property. 

Permanent Loans, Secured by: 

VA221, VA222 1–4 Dwelling Units; 

VA223, VA224 Multifamily (5 or 

more) Dwelling Units; 

VA 225, VA226 Nonresidential 

Property (Except Land); 

VA227, VA228 Owner-Occupied 

Nonresidential Property; 

VA231, VA232 Other Nonresidential 

Property; 

VA233, VA234 Land; 

VA241, VA242 Nonmortgage Loans— 

Total; 

V243, VA244 Commercial Loans— 

Total; 

VA245, VA246 Secured; 

VA247, VA248 Unsecured; 

VA251, VA252 Credit Card Loans 

Outstanding—Business; 

VA253, VA254 Consumer Loans— 

Total. 

New items are proposed in Schedule 

PD to add detail to troubled debt 

restructuring amounts past due and still 

accruing, 30–89 days (500-series lines), 

past due and still accruing, 90 days or 

more (600-series lines), and nonaccrual 

(700-series lines): 

Construction Loans: 

PD516, PD616, PD716 1–4 Dwelling 

Units; 

PD517, PD617, PD717 Multifamily (5 

or more) Dwelling Units; 

PD518, PD618, PD718 Nonresidential 

Property. 

Permanent Loans, Secured by: 

PD519, PD619, PD719 1–4 Dwelling 

Units; 

PD525, PD625, PD725 Multifamily (5 

or more) Dwelling Units; 

PD535, PD635, PD735 Nonresidential 

Property (Except Land); 

PD536, PD636, PD736 OwnerOccupied Nonresidential Property; 

PD537, PD637, PD737 Other 

Nonresidential Property; 

PD538, PD638, PD738 Land; 

PD539, PD639, PD739 Nonmortgage 

Loans—Total; 

PD540, PD640, PD740 Commercial 

Loans—Total; 

PD541, PD641, PD741 Secured; 

PD542, PD642, PD742 Unsecured; 

PD545, PD645, PD745 Credit Card 

Loans Outstanding—Business; 

PD560, PD660, PD760 Consumer 

Loans—Total. 

In the aggregate, troubled debt 

restructurings for all insured 

institutions have grown from $6.9 

billion at year-end 2007, to $24.0 billion 

at year-end 2008, to $58.1 billion at 

year-end 2009, with a further increase to 

$64.0 billion as of March 31, 2010. The 

proposed additional detail on troubled 

debt restructurings in Schedules VA and 

PD would enable OTS to better 

understand the level of restructuring 

activity at savings associations, the 

categories of loans involved in this 

activity, and, therefore, whether savings 

associations are working with their 

borrowers to modify and restructure 

loans. In particular, to encourage banks 

and savings associations to work 

constructively with their commercial 

borrowers, the federal banking agencies 

recently issued guidance on commercial 

real estate loan workouts and small 

business lending. While this guidance 

has explained the agencies’ expectations 

for prudent workouts, the agencies do 

not have adequate and reliable data 

outside of the examination process to 

assess restructuring activity for 

commercial real estate loans and 

commercial and industrial loans. 

Further, it is important to separately 

identify commercial real estate loan 

restructurings from commercial and 

industrial loan restructurings given that 

the value of the real estate collateral is 

a consideration in an institution’s 

decision to modify the terms of a 

commercial real estate loan in a 

troubled debt restructuring, but such 

collateral protection would normally be 

absent from commercial and industrial 

loans for which a loan modification is 

being explored because of borrowers’ 

financial difficulties. 

It is also anticipated that other loan 

categories will experience continued 

workout activity in the coming months 

given that every asset class has been 

impacted by the recent recession (as 

evidenced by the increase in past due 

and nonaccrual assets across all asset 

mstockstill on DSKH9S0YB1PROD with NOTICES

61566 Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 

1Accounting Standards Codification paragraph 

470–60–15–11. 

classes). In addition, because credit 

availability has substantially decreased, 

borrowers experiencing financial 

difficulties are left with few alternatives 

for funding and their creditor 

institutions will need to evaluate 

whether to work with them by granting 

a concession when modifying the terms 

of their existing loans. 

The new data would provide the OTS 

with the level of information necessary 

to assess savings associations’ troubled 

debt restructurings to the same extent 

that other loan quality and performance 

indicators can be assessed. However, the 

OTS notes that, under generally 

accepted accounting principles, 

troubled debt restructurings do not 

include changes in lease agreements 1

and we therefore propose to exclude 

leases from the new items proposed. 

B. Auto Loans 

OTS is proposing to collect additional 

information on automobile loans. More 

specifically, the following new lines are 

proposed: 

SC183 Securities Backed by Auto 

Loans; 

SO173 Auto Loans—Interest Income; 

CF401 Auto Loans Closed or 

Purchased During Quarter; 

CF402 Auto Loans Sold During 

Quarter; 

SI886 Auto Loans—Average Daily 

Balance During Quarter. 

Automobile loans are a significant 

consumer business for many large 

savings associations. The proposed 

additional lines will enhance 

supervisory evaluation and oversight of 

automobile lending performance and 

risks. 

C. Commercial Mortgage-Backed 

Securities Issued or Guaranteed by U.S. 

Government Agencies and Sponsored 

Agencies 

OTS is proposing to split the existing 

items on mortgage-backed securities 

(MBS) in Schedule SC to distinguish 

between residential and commercial 

MBS issued or guaranteed by U.S. 

Government agencies and sponsored 

agencies (collectively, U.S. Government 

agencies) and residential and 

commercial MBS issued by others. OTS 

proposes to revise the following existing 

lines to report data for residential MBS: 

Residential Pass-Through: 

SC210 Insured or Guaranteed by an 

Agency or Sponsored Enterprise of 

the U.S.; 

SC215 Other Pass-Through. 

Other Residential Mortgage-Backed 

Securities (Excluding Bonds): 

SC217 Issued or Guaranteed by 

FNMA, FHLMC, or GNMA; 

SC219 Collateralized by MortgageBacked Securities Issued or 

Guaranteed by FNMA, FHLMC, or 

GNMA; 

SC222 Other. 

OTS proposes the following new lines 

to report data for commercial MBS: 

Commercial Pass-Through: 

SC211 Insured or Guaranteed by an 

Agency or Sponsored Enterprise of 

the U.S.; 

SC213 Other Pass-Through. 

Other Commercial Mortgage-Backed 

Securities (Excluding Bonds): 

SC223 Issued or Guaranteed by 

FNMA, FHLMC, or GNMA; 

SC224 Collateralized by MortgageBacked Securities Issued or 

Guaranteed by FNMA, FHLMC, or 

GNMA; 

SC225 Other. 

D. Nonbrokered Deposits Obtained 

Through the Use of Deposit Listing 

Service Companies 

Savings associations currently report 

information on their funding in the form 

of brokered deposits in Schedule DI. 

These data are an integral component of 

the regulatory analysis of individual 

institutions’ liquidity and funding, 

including their reliance on non-core 

sources to fund their activities. 

Deposit brokers have traditionally 

provided intermediary services for 

financial institutions and investors. 

However, the Internet, deposit listing 

services, and other automated services 

now enable investors who focus on 

yield to easily identify high-yielding 

deposit sources. Such customers are 

highly rate sensitive and can be a less 

stable source of funding than typical 

relationship deposit customers. Because 

they often have no other relationship 

with the financial institution, these 

customers may rapidly transfer funds to 

other institutions if more attractive 

returns become available. 

OTS expects each institution to 

establish and adhere to a sound 

liquidity and funds management policy. 

The institution’s board of directors, or a 

committee of the board, should also 

ensure that senior management takes the 

necessary steps to monitor and control 

liquidity risk. This process includes 

establishing procedures, guidelines, 

internal controls, and limits for 

managing and monitoring liquidity and 

reviewing the institution’s liquidity 

position, including its deposit structure, 

on a regular basis. A necessary 

prerequisite to sound liquidity and 

funds management decisions is a sound 

management information system, which 

provides certain basic information 

including data on non-relationship 

funding programs, such as brokered 

deposits, deposits obtained through the 

Internet or other types of advertising, 

and other similar rate sensitive deposits. 

Thus, an institution’s management 

should be aware of the number and 

magnitude of such deposits. 

To improve its ability to monitor 

potentially volatile funding sources, 

OTS is proposing two lines to Schedule 

DI in which savings associations would 

report the amount of deposits and 

average daily deposits obtained through 

the use of deposit listing services that 

are not brokered deposits: 

DI117 Total Amount of Deposits 

Obtained Through Deposit Listing 

Services That Are Not Brokered 

Deposits; 

DI547 Average Daily Deposits Totals: 

Deposits Obtained Through Deposit 

Listing Services That Are Not 

Brokered Deposits. 

A deposit listing service is a company 

that compiles information about the 

interest rates offered on deposits, such 

as certificates of deposit, by insured 

depository institutions. A particular 

company could be a deposit listing 

service (compiling information about 

certificates of deposits) as well as a 

deposit broker (facilitating the 

placement of certificates of deposit). A 

deposit listing service is not a deposit 

broker if all of the following four criteria 

are met: 

(1) The person or entity providing the 

listing service is compensated solely by 

means of subscription fees (i.e., the fees 

paid by subscribers as payment for their 

opportunity to see the rates gathered by 

the listing service) and/or listing fees 

(i.e., the fees paid by depository 

institutions as payment for their 

opportunity to list or ‘‘post’’ their rates). 

The listing service does not require a 

depository institution to pay for other 

services offered by the listing service or 

its affiliates as a condition precedent to 

being listed. 

(2) The fees paid by depository 

institutions are flat fees: They are not 

calculated on the basis of the number or 

dollar amount of deposits accepted by 

the depository institution as a result of 

the listing or ‘‘posting’’ of the depository 

institution’s rates. 

(3) In exchange for these fees, the 

listing service performs no services 

except (A) the gathering and 

transmission of information concerning 

the availability of deposits; and/or (B) 

the transmission of messages between 

depositors and depository institutions 

(including purchase orders and trade 

confirmations). In publishing or 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 61567 

2An Individual Taxpayer Identification Number 

is a tax processing number only available for certain 

nonresident and resident aliens, their spouses, and 

dependents who cannot get a Social Security 

Number. It is a 9-digit number, beginning with the 

number ‘‘9,’’ formatted like a Social Security 

Number. 

3Formerly paragraph 22A of FIN 46(R), as 

amended by FAS 167. 

4 Deloitte & Touche LLP, ‘‘Back on-balance sheet: 

Observations from the adoption of FAS 167,’’ May 

2010, page 4 (http://www.deloitte.com/view/en_US/ 

us/Services/audit-enterprise-risk-services/

Financial-Accounting-Reporting/f3a70ca

28d9f8210VgnVCM200000bb42f00aRCRD.htm). 

5See paragraphs A80 and A81 of FAS 167. 

displaying information about depository 

institutions, the listing service must not 

attempt to steer funds toward particular 

institutions (except that the listing 

service may rank institutions according 

to interest rates and also may exclude 

institutions that do not pay the listing 

fee). Similarly, in any communications 

with depositors or potential depositors, 

the listing service must not attempt to 

steer funds toward particular 

institutions. 

(4) The listing service is not involved 

in placing deposits. Any funds to be 

invested in deposit accounts are 

remitted directly by the depositor to the 

insured depository institution and not, 

directly or indirectly, by or through the 

listing service. 

E. Deposits of Individuals, Partnerships, 

and Corporations 

Savings associations currently do not 

report separate breakdowns of their 

deposit accounts in the TFR by category 

of depositor. The recent crisis has 

demonstrated that business depositors’ 

behavioral characteristics are 

significantly different than the 

behavioral characteristics of 

individuals. Thus, separate reporting of 

deposits of individuals versus deposits 

of partnerships and corporations would 

enable the federal banking agencies to 

better assess the liquidity risk profile of 

institutions given differences in the 

relative stability of deposits from these 

two sources. 

OTS is proposing that the following 

two lines be added to Schedule DI: 

DI196 Deposits of Individuals; 

DI197 Deposits of Partnerships and 

Corporations. 

Under this proposal, accounts for 

which the depositor’s taxpayer 

identification number, as maintained on 

the account in the savings association’s 

records, is a Social Security Number (or 

an Individual Taxpayer Identification 

Number 2) should be treated as deposits 

of individuals. In general, all other 

accounts should be treated as deposits 

of partnerships and corporations. 

However, line SC710 currently includes 

all certified and official checks. To limit 

the reporting burden of this proposed 

change, official checks in the form of 

money orders and travelers checks 

would be reported as deposits of 

individuals. Certified checks and all 

other official checks would be reported 

as deposits of partnerships and 

corporations. OTS is requesting 

comment on this approach to reporting 

certified and official checks. 

F. Variable Interest Entities 

In June 2009, the Financial 

Accounting Standards Board (FASB) 

issued accounting standards that have 

changed the way entities account for 

securitizations and special purpose 

entities. ASU No. 2009–16 (formerly 

FAS 166) revised ASC Topic 860, 

Transfers and Servicing, by eliminating 

the concept of a ‘‘qualifying specialpurpose entity’’ (QSPE) and changing 

the requirements for derecognizing 

financial assets. ASU No. 2009–17 

(formerly FAS 167) revised ASC Topic 

810, Consolidations, by changing how a 

financial institution or other company 

determines when an entity that is 

insufficiently capitalized or is not 

controlled through voting or similar 

rights, i.e., a ‘‘variable interest entity’’ 

(VIE), should be consolidated. For most 

financial institutions, ASU Nos. 2009– 

16 and 2009–17 took effect January 1, 

2010. 

Under ASC Topic 810, as amended, 

determining whether a financial 

institution is required to consolidate a 

VIE depends on a qualitative analysis of 

whether that institution has a 

‘‘controlling financial interest’’ in the 

VIE and is therefore the primary 

beneficiary of the VIE. The analysis 

focuses on the institution’s power over 

and interest in the VIE. With the 

removal of the QSPE concept from 

generally accepted accounting 

principles that was brought about in 

amended ASC Topic 860, an institution 

that transferred financial assets to an 

SPE that met the definition of a QSPE 

before the effective date of these 

amended accounting standards was 

required to evaluate whether, pursuant 

to amended ASC Topic 810, it must 

begin to consolidate the assets, 

liabilities, and equity of the SPE as of 

that effective date. Thus, when 

implementing amended ASC Topics 860 

and 810 at the beginning of 2010, 

financial institutions began to 

consolidate certain previously offbalance securitization vehicles, assetbacked commercial paper conduits, and 

other structures. Going forward, 

financial institutions with variable 

interests in new VIEs must evaluate 

whether they have a controlling 

financial interest in these entities and, 

if so, consolidate them. In addition, 

institutions must continually reassess 

whether they are the primary 

beneficiary of VIEs in which they have 

variable interests. 

For those VIEs that savings 

associations must consolidate, guidance 

advises institutions to report the assets 

and liabilities of these VIEs on Schedule 

SC in the balance sheet category 

appropriate to the asset or liability. 

However, ASC paragraph 810–10–45– 

25 3 requires a reporting entity to 

present ‘‘separately on the face of the 

statement of financial position: a. Assets 

of a consolidated variable interest entity 

(VIE) that can be used only to settle 

obligations of the consolidated VIE 

[and] b. Liabilities of a consolidated VIE 

for which creditors (or beneficial 

interest holders) do not have recourse to 

the general credit of the primary 

beneficiary.’’ This requirement has been 

interpreted to mean that ‘‘each line item 

of the consolidated balance sheet should 

differentiate which portion of those 

amounts meet the separate presentation 

conditions.’’ 4 In requiring separate 

presentation for these assets and 

liabilities, the FASB agreed with 

commenters on its proposed accounting 

standard on consolidation that ‘‘separate 

presentation * * * would provide 

transparent and useful information 

about an enterprise’s involvement and 

associated risks in a variable interest 

entity.’’ 5 The federal banking agencies 

concur that separate presentation would 

provide similar benefits to them and 

other Call Report and TFR users. 

Consistent with the presentation 

requirements discussed above, the 

banking agencies are proposing to add a 

new Schedule RC–V, Variable Interest 

Entities, to the Call Report, and OTS is 

proposing to add a new Schedule VIE, 

Variable Interest Entities, to the TFR. 

Financial institutions would use the 

proposed new schedules to report a 

breakdown of the assets of consolidated 

VIEs that can be used only to settle 

obligations of the consolidated VIEs and 

liabilities of consolidated VIEs for 

which creditors do not have recourse to 

the general credit of the financial 

institution. The following proposed 

categories of assets and liabilities would 

include some of the same categories 

presented on the Call Report and TFR 

balance sheet schedules: Cash and 

balances due from depository 

institutions, Held-to-maturity securities; 

Available-for-sale securities; Securities 

purchased under agreements to resell, 

Loans and leases held for sale; Loans 

mstockstill on DSKH9S0YB1PROD with NOTICES

61568 Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 

and leases, net of unearned income; 

Allowance for loan and lease losses; 

Trading assets (other than derivatives); 

Derivative trading assets; Other real 

estate owned; Other assets; Securities 

sold under agreements to repurchase; 

Derivative trading liabilities; Other 

borrowed money (other than 

commercial paper); Commercial paper; 

and Other liabilities. These assets and 

liabilities would be presented separately 

for securitization trusts, asset-backed 

commercial paper conduits, and other 

VIEs. 

In addition, the federal banking 

agencies propose to include separate 

items in the new schedules in which 

financial institutions would report the 

total assets and the total liabilities of 

consolidated VIEs (for which the 

breakdown of assets and liabilities 

described above is not reported) to help 

the agencies understand the magnitude 

of any VIE assets that are not dedicated 

solely to settling obligations of the VIE 

and any VIE liabilities for which 

creditors may have recourse to the 

general credit of the bank. These 

consolidated VIEs’ total assets and total 

liabilities, which would be reported 

after eliminating intercompany 

transactions, would also be reported 

separately for securitization trusts, 

asset-backed commercial paper 

conduits, and other VIEs. 

G. Assets Covered by FDIC Loss-Sharing 

Agreements 

In March 2010, the federal banking 

agencies added a four-way breakdown 

of assets covered by loss-sharing 

agreements with the FDIC to the Call 

Report and the TFR. In a January 22, 

2010, comment letter to the banking 

agencies on the agencies’ submission for 

OMB review of proposed Call Report 

revisions for implementation in 2010, 

the American Bankers Association 

(ABA) stated that while the addition of 

the covered asset items to Schedule 

RC–M was 

a step in the right direction, ABA believes it 

would be beneficial to regulators, reporting 

banks, investors, and the public to have 

additional, more granular information about 

the various categories of assets subject to the 

FDIC loss-sharing agreements. While we 

recognize that this would result in additional 

reporting burden on banks, on balance our 

members feel strongly that the benefit of 

additional disclosure of loss-sharing data 

would outweigh the burden of providing 

these detailed data. Thus, we urge the 

Agencies and the FFIEC to further revise the 

collection of data from banks on assets 

covered by FDIC loss-sharing agreements on 

the Call Report to include the several changes 

suggested below. * * * We believe these 

changes would provide a more precise and 

accurate picture of a bank’s asset quality. 

OTS is proposing to revise the TFR 

along the lines suggested by the ABA by 

adding the following new lines: 

Breakdown of line SI770, Loans and 

Leases: 

SI771 Construction Loans—Total 

SI773 Residential—Total 

SI717 1–4 Dwelling Units 

SI718 Multifamily (5 or More) 

Dwelling Units 

SI775 Nonresidential Property 

SI777 Permanent Loans—Total 

SI778 Residential—Total 

SI779 1–4 Dwelling Units—Total 

SI780 Revolving Open-End Loans 

SI781 All Other—First Liens 

SI782 All Other—Junior Liens 

SI783 Multifamily (5 or More) 

Dwelling Units 

SI784 Nonresidential Property—Total 

SI785 Owner-Occupied Nonfarm 

Nonresidential Property 

SI786 Other Nonfarm Nonresidential 

Property 

SI787 Land 

SI788 Commercial Loans—Total 

SI789 Secured 

SI790 Unsecured 

SI791 Credit Card Loans 

Outstanding—Business 

SI792 Lease Receivables 

SI793 Consumer Loans—Total 

SI794 Loans on Deposits 

SI795 Home Improvement Loans 

(Not Secured by Real Estate) 

SI796 Education Loans 

SI797 Auto Loans 

SI798 Mobile Home Loans 

SI799 Credit Cards 

SI800 Other, Including Lease 

Receivables 

SI801 Repossessed Assets—Total 

SI802 Real Estate—Total 

SI803 Construction 

SI804 Residential—Total 

SI805 1–4 Dwelling Units 

SI806 Multifamily (5 or More) 

Dwelling Units 

SI807 Nonresidential (Except Land) 

SI808 Land 

SI809 Other Repossessed Assets 

SI810 Guaranteed amount of total 

amount of covered real estate owned 

SI811 Total Income Included on 

Schedule SO Received From or 

Accrued on Assets Covered by the 

FDIC Under Loss-Sharing Agreements 

Breakdown of Covered Past Due and 

Nonaccrual Loans and Leases (3 

amounts for each line—30–89 days past 

due and still accruing, 90 days or more 

past due and still accruing, and 

nonaccrual): 

PD515, PD615, PD715 Construction 

Loans—Total 

PD SUBxxx, PD SUBxxx, PD SUBxxx

Residential—Total 

PD516, PD616, PD716 1–4 Dwelling 

Units 

PD517, PD617, PD717 Multifamily 

(5 or More) Dwelling Units 

PD518, PD618, PD718 Nonresidential 

Property 

PD SUBxxx, PD SUBxxx, PD SUBxxx

Permanent Loans—Total 

PD SUBxxx, PD SUBxxx, PD SUBxxx

Residential—Total 

PD SUBxxx, PD SUBxxx, PD SUBxxx

1–4 Dwelling Units—Total 

PD521, PD621, PD721 Revolving 

Open-End Loans 

PD523, PD623, PD723 All Other—First 

Liens 

PD524, PD624, PD724 All Other— 

Junior Liens 

PD525, PD625, PD725 Multifamily 

(5 or More) Dwelling Units 

PD535, PD635, PD735 Nonresidential 

Property—Total 

PD536, PD636, PD736 OwnerOccupied Nonresidential Property 

PD537, PD637, PD737 Other 

Nonresidential Property 

PD538, PD638, PD738 Land 

PD540, PD640, PD740 Commercial 

Loans—Total 

PD541, PD641, PD741 Secured 

PD542, PD642, PD742 Unsecured 

PD540, PD643, PD743 Credit Card 

Loans Outstanding—Business 

PD545, PD645, PD745 Lease 

Receivables 

PD SUBxxx, PD SUBxxx, PD SUBxxx

Consumer Loans—Total 

PD561, PD661, PD761 Loans on 

Deposits 

PD563, PD663, PD763 Home 

Improvement Loans (Not Secured by 

Real Estate) 

PD565, PD665, PD765 Education 

Loans 

PD567, PD667, PD767 Auto Loans 

PD569, PD669, PD769 Mobile Home 

Loans 

PD571, PD671, PD771 Credit Cards 

PD580, PD680, PD780 Other, 

Including Lease Receivables 

PD596, PD696, PD796 Guaranteed 

Amount of Total Amount of Covered 

Past Due and Nonaccrual Loans and 

Leases 

H. Life Insurance Assets 

Financial institutions purchase and 

hold bank-owned life insurance (BOLI) 

policies as assets, the premiums for 

which may be used to acquire general 

account or separate account life 

insurance policies. Savings associations 

currently report the aggregate amount of 

their life insurance assets in Schedule 

SC without regard to whether their 

holdings are general account or separate 

account policies. 

Many financial institutions have BOLI 

assets, and the distinction between 

those life insurance policies that 

represent general account products and 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 61569 

those that represent separate account 

products has meaning with respect to 

the degree of credit risk involved as well 

as performance measures for the life 

insurance assets in a volatile market 

environment. In a general account 

policy, the general assets of the 

insurance company issuing the policy 

support the policy’s cash surrender 

value. In a separate account policy, the 

policyholder’s cash surrender value is 

supported by assets segregated from the 

general assets of the insurance carrier. 

Under such an arrangement, the 

policyholder neither owns the 

underlying separate account created by 

the insurance carrier on its behalf nor 

controls investment decisions in the 

account. Nevertheless, the policyholder 

assumes all investment and price risk. 

A number of financial institutions 

holding separate account life insurance 

policies have recorded significant losses 

in recent years due to the volatility in 

the markets and the vulnerability to 

market fluctuations of the instruments 

that are investment options in separate 

account life insurance policies. 

Information distinguishing between the 

cash surrender values of general account 

and separate account life insurance 

policies would allow the OTS to track 

savings associations’ holdings of both 

types of life insurance policies with 

their differing risk characteristics and 

changes in their carrying amounts 

resulting from their performance over 

time. Accordingly, the OTS is proposing 

to add the following new items: 

Key Person Life Insurance: 

SC617 General Account Life Insurance 

Assets; 

SC619 Separate Account Life 

Insurance Assets. 

Other BOLI Not Considered Key 

Person Life Insurance: 

SC627 General Account Life Insurance 

Assets; 

SC629 Separate Account Life 

Insurance Assets. 

I. Captive Insurance and Reinsurance 

Subsidiaries 

Captive insurance companies are 

utilized by banking organizations to 

‘‘self insure’’ or reinsure their own risks 

pursuant to incidental activities 

authority. A captive insurance company 

is a limited purpose insurer that may be 

licensed as a direct writer of insurance 

or as a reinsurer. Insurance premiums 

paid by an institution to its captive 

insurer, and claims paid back to the 

institution by the captive, are transacted 

on an intercompany basis, so there is no 

evidence of this type of self-insurance 

activity when an institution prepares 

consolidated financial statements, 

including its TFR. The cash flows for a 

captive reinsurer’s transactions also are 

not transparent in an institution’s 

consolidated financial statements. 

A number of financial institutions 

own captive insurers or reinsurers, 

several of which were authorized to 

operate more than ten years ago. Some 

of the most common lines of business 

underwritten by financial institution 

captive insurers are credit life, accident, 

and health; disability insurance; and 

employee benefits coverage. 

Additionally, financial institution 

captive reinsurance subsidiaries may 

underwrite private mortgage guaranty 

reinsurance and terrorism risk 

reinsurance. 

As part of their supervisory processes, 

the federal banking agencies have been 

following the proliferation of financial 

institution captive insurers and 

reinsurers and the performance trends 

of these captives for the past several 

years. Collection of financial 

information regarding the total assets of 

captive insurance and reinsurance 

subsidiaries would assist the agencies in 

monitoring the insurance activities of 

banking organizations as well as any 

safety and soundness risks posed to the 

parent institution from the activities of 

these subsidiaries. 

OTS is proposing to collect two new 

items in Schedule SI: 

SI762 Total assets of captive insurance 

subsidiaries; 

SI763 Total assets of captive 

reinsurance subsidiaries. 

These new items are not expected to 

be applicable to the vast majority of 

savings associations. When reporting 

the total assets of these captive 

subsidiaries in the proposed new items, 

savings associations should measure the 

subsidiaries’ total assets before 

eliminating intercompany transactions 

between the consolidated subsidiary 

and other offices or subsidiaries of the 

consolidated institution. 

J. Quarterly Reporting for Collective 

Investment Funds 

For financial institutions that provide 

fiduciary and related services, the 

volume of assets under management is 

an important metric for understanding 

risk at these institutions and in the 

banking system. A savings association’s 

assets under management may include 

such pooled investment vehicles as 

collective investment funds and 

common trust funds (hereafter, 

collectively, CIFs) that it offers to 

investors. When considering how and 

where to place funds in pooled 

investment vehicles, which also include 

registered investment funds (mutual 

funds), investors’ decisions are highly 

influenced by risk and return factors. 

While registered investment funds 

regularly disclose an array of fundrelated data to the U.S. Securities and 

Exchange Commission and the investing 

public, the OTS’s collection and public 

disclosure of summary data on CIFs is 

limited to annual data reported in lines 

FS610 through FS675 of TFR Schedule 

FS, Fiduciary and Related Services, as 

of each December 31. 

Like other investment vehicles, CIFs 

were affected by market disruptions 

during the recent financial crisis. To 

detect changes in investor behavior and 

bank investment management strategies 

at an early stage in this $2.5 trillion line 

of business, the banking agencies 

believe it would be beneficial to change 

the reporting frequency for the Schedule 

FS data on collective investment funds 

and common trust funds from annually 

to quarterly for those institutions that 

currently report their fiduciary assets 

and fiduciary income quarterly. 

Quarterly filing of these Schedule FS 

data is required of institutions with total 

fiduciary assets greater than $250 

million (as of the preceding December 

31) or with gross fiduciary and related 

income greater than 10 percent of 

revenue for the preceding calendar year. 

K. Service Charges on Deposit Accounts 

Savings associations currently do not 

report separate detail on service charges 

on deposit accounts. There has been 

growing interest in the amount of 

deposit account service fees charged by 

financial institutions. Banks currently 

report this data as a separate component 

of noninterest income in Call Report 

Schedule RI. In reporting this item, 

banks include amounts charged 

depositors (in domestic offices): 

(1) For the maintenance of their 

deposit accounts with the bank, socalled ‘‘maintenance charges,’’ 

(2) For their failure to maintain 

specified minimum deposit balances, 

(3) Based on the number of checks 

drawn on and deposits made in their 

deposit accounts, 

(4) For checks drawn on so-called ‘‘no 

minimum balance’’ deposit accounts, 

(5) For withdrawals from 

nontransaction deposit accounts, 

(6) For the closing of savings accounts 

before a specified minimum period of 

time has elapsed, 

(7) For accounts which have remained 

inactive for extended periods of time or 

which have become dormant, 

(8) For deposits to or withdrawals 

from deposit accounts through the use 

of automated teller machines or remote 

service units, 

mstockstill on DSKH9S0YB1PROD with NOTICES

61570 Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 

(9) For the processing of checks 

drawn against insufficient funds, socalled ‘‘NSF check charges,’’ that the 

bank assesses regardless of whether it 

decides to pay, return, or hold the 

check. Exclude subsequent charges 

levied against overdrawn accounts 

based on the length of time the account 

has been overdrawn, the magnitude of 

the overdrawn balance, or which are 

otherwise equivalent to interest (report 

in the appropriate subitem of Schedule 

RI, item 1.a, ‘‘Interest and fee income on 

loans (in domestic offices)’’), 

(10) For issuing stop payment orders, 

(11) For certifying checks, and 

(12) For the accumulation or 

disbursement of funds deposited to 

Individual Retirement Accounts (IRAs) 

or Keogh Plan accounts when not 

handled by the bank’s trust department. 

Report such commissions and fees 

received for accounts handled by the 

bank’s trust department in Schedule RI, 

item 5.a, ‘‘Income from fiduciary 

activities.’’ Exclude penalties paid by 

depositors for the early withdrawal of 

time deposits (report as ‘‘Other 

noninterest income’’ in Schedule RI, 

item 5.l, or deduct from the interest 

expense of the related category of time 

deposits, as appropriate). 

OTS is proposing to add the following 

line to Schedule SO as a detail item of 

other fees and charges within the 

noninterest income section: 

SO422 Service Charges on Deposit 

Accounts 

L. Qualifying Noncontrolling (Minority) 

Interests in Consolidated Subsidiaries 

Only qualifying noncontrolling 

(minority) interests in consolidated 

subsidiaries are allowable in Tier 1 

capital. Those that are non-qualifying 

are not. The existing Schedule CCR 

computes Tier 1 Capital using Total 

Equity Capital (Line SC 84), which 

includes all noncontrolling (minority) 

interests from Line SC 800. This can be 

interpreted as permitting all 

noncontrolling (minority) interests (Line 

SC 800), whether qualifying or not, to be 

included in the calculation of Tier 1 

Capital. Therefore to clarify the 

treatment of noncontrolling (minority) 

interests, OTS is proposing to use Total 

Savings Association Equity Capital 

(Line SC 80), which is net of 

noncontrolling (minority) interests, as 

the starting point for computation of 

Tier 1 capital for Schedule CCR. Noncontrolling (minority) interests are then 

added to Tier 1, per the new line 

CCR187 described below, only to the 

extent they are qualifying 

noncontrolling (minority) interests. This 

approach is consistent with the 

approach used on the Call Report. Thus, 

OTS is proposing to revise one line and 

add a new line on Schedule CCR to 

address the treatment of noncontrolling 

(minority) interests in Tier 1 Capital: 

Revise line CCR100 Total Equity 

Capital (SC84) to CCR100 Total 

Savings Association Equity Capital 

(SC80) 

Add new line CCR187 Qualifying 

Noncontrolling (Minority) Interests in 

Consolidated Subsidiaries. 

M. Trust Preferred Securities 

As financial institution investments, 

trust preferred securities are hybrid 

instruments possessing characteristics 

typically associated with debt 

obligations. Although each issue of 

these securities may involve minor 

differences in terms, under the basic 

structure of trust preferred securities a 

corporate issuer, such as a financial 

institution holding company, first 

organizes a business trust or other 

special purpose entity. This trust issues 

two classes of securities: common 

securities, all of which are purchased 

and held by the corporate issuer, and 

trust preferred securities, which are sold 

to investors. The business trust’s only 

assets are deeply subordinated 

debentures of the corporate issuer, 

which the trust purchases with the 

proceeds from the sale of its common 

and preferred securities. The corporate 

issuer makes periodic interest payments 

on the subordinated debentures to the 

business trust, which uses these 

payments to pay periodic dividends on 

the trust preferred securities to the 

investors. The subordinated debentures 

have a stated maturity and may also be 

redeemed under other circumstances. 

Most trust preferred securities are 

subject to mandatory redemption upon 

the repayment of the debentures. 

Trust preferred securities meet the 

definition of a security in FASB 

Statement No. 115, ‘‘Accounting for 

Certain Investments in Debt and Equity 

Securities.’’ Because of the mandatory 

redemption provision in the typical 

trust preferred security, investments in 

trust preferred securities would 

normally be considered debt securities 

for financial accounting purposes. 

Accordingly, regardless of the authority 

under which a financial institution is 

permitted to invest in trust preferred 

securities, savings associations should 

report these investments as debt 

securities for purposes of these reports 

(unless, based on the specific facts and 

circumstances of a particular issue of 

trust preferred securities, the securities 

would be considered equity rather than 

debt securities under Statement No. 115. 

To better gauge the level of investment 

in trust preferred securities by savings 

associations, the OTS is proposing to 

add the following two lines as detail to 

other investment securities reported in 

Schedule SC: 

SC187 Trust Preferred Securities 

Issues By FDIC–Insured Depository 

Institutions or Their Holding 

Companies; 

SC188 Other Trust Preferred 

Securities. 

N. General, Specific, and Total 

Valuation Allowances by Major Loan 

Type 

OTS is proposing that savings 

associations report additional detail on 

loans for general and specific valuation 

allowances. The proposed additional 

detail on valuation allowances in 

Schedules VA would enable OTS to 

better understand reserves activity 

within loan categories at savings 

associations. 

More specifically, new items are 

proposed for Schedule VA under three 

columns for the amount of general 

valuation allowances at the end of the 

current quarter (1100 series of lines), the 

amount of specific valuation allowances 

at the end of the current quarter (1200 

series of lines), and the total of 

valuation allowances at the end of the 

current quarter (1300 series of lines): 

VA1115, VA1215, VA1315

Construction Loans—Total 

VA SUBxxx, VA SUBxxx,VA SUBxxx

Residential—Total 

VA1120, VA1220, VA1320 1–4

Dwelling Units 

VA1122, VA1222, VA1322

Multifamily (5 or More) Dwelling 

Units 

VA1130, VA1230, VA1330

Nonresidential Property 

VA SUBxxx, VA SUBxxx,VA SUBxxx

Permanent Loans—Total 

VA SUBxxx, VA SUBxxx,VA SUBxxx

Residential—Total 

VA SUBxxx, VA SUBxxx,VA SUBxxx 

1–4 Dwelling Units—Total 

VA1140, VA1240, VA1340 Revolving 

Open-End Loans 

VA1145, VA1245, VA1345 All Other— 

First Liens 

VA1147, VA1247, VA1347 All Other— 

Junior Liens 

VA1150, VA1250, VA1350

Multifamily (5 or More) Dwelling 

Units 

VA1160, VA1260, VA1360

Nonresidential Property—Total 

VA1162, VA1262, VA1362 OwnerOccupied Nonresidential Property 

VA1163, VA1263, VA1363 Other 

Nonresidential Property 

VA1165, VA1265, VA1365 Land 

VA1170, VA1270, VA1370

Commercial Loans—Total 

mstockstill on DSKH9S0YB1PROD with NOTICES

Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 61571 

VA1172, VA1272, VA1372 Secured 

VA1173, VA1273, VA1373 Unsecured 

VA1174, VA1274, VA1374 Credit Card 

Loans Outstanding—Business 

VA1176, VA1276, VA1376 Lease 

Receivables 

VA SUBxxx, VA SUBxxx,VA SUBxxx

Consumer Loans—Total 

VA1182, VA1282, VA1382 Loans on 

Deposits 

VA1183, VA1283, VA1383 Home 

Improvement Loans (Not Secured by 

Real Estate) 

VA1184, VA1284, VA1384 Education 

Loans 

VA1185, VA1285, VA1385 Auto Loans 

VA1186, VA1286, VA1386 Mobile 

Home Loans 

VA1187, VA1287, VA1387 Credit 

Cards 

VA1188, VA1288, VA1388 Other, 

Including Lease Receivables 

O. Classified Assets by Major Loan Type 

OTS is proposing that savings 

associations report additional detail on 

classified assets by major loan type. The 

proposed additional detail on classified 

assets in Schedules VA would enable 

OTS to better understand asset quality 

within loan categories at savings 

associations. 

More specifically, new items are 

proposed for Schedule VA under four 

columns for the amount of special 

mention assets at the end of the current 

quarter (1400 series of lines), the 

amount of substandard assets at the end 

of the current quarter (1500 series of 

lines), the amount of doubtful assets at 

the end of the current quarter (1600 

series of lines), and the amount of loss 

assets at the end of the current quarter 

(1700 series of lines): 

VA1415, VA1515, VA1615, VA1715

Construction Loans—Total 

VA SUBxxx, VA SUBxxx, VA SUBxxx, 

VA SUBxxx Residential—Total 

VA1420, VA1520, VA1620, VA1720 1– 

4 Dwelling Units 

VA1422, VA1522, VA1622, VA1722

Multifamily (5 or More) Dwelling 

Units 

VA1430, VA1530, VA1630, VA1730

Nonresidential Property 

VA SUBxxx, VA SUBxxx, VA SUBxxx, 

VA SUBxxx Permanent Loans— 

Total 

VA SUBxxx, VA SUBxxx, VA SUBxxx, 

VA SUBxxx Residential—Total 

VA SUBxxx, VA SUBxxx, VA SUBxxx, 

VA SUBxxx 1–4 Dwelling Units— 

Total 

VA1440, VA1540, VA1640, VA1740

Revolving Open-End Loans 

VA1445, VA1545, VA1645, VA1745

All Other—First Liens 

VA1447, VA1547, VA1647, VA1747

All Other—Junior Liens 

VA1450, VA1550, VA1650, VA1750

Multifamily (5 or More) Dwelling 

Units 

VA1460, VA1560, VA1660, VA1760

Nonresidential Property—Total 

VA1462, VA1562, VA1662, VA1762

Owner-Occupied Nonresidential 

Property 

VA1463, VA1563, VA1663, VA1763

Other Nonresidential Property 

VA1465, VA1565, VA1665, VA1765

Land 

VA1470, VA1570, VA1670, VA1770

Commercial Loans—Total 

VA1472, VA152, VA1672, VA1772

Secured 

VA1473, VA1573, VA1673, VA1773

Unsecured 

VA1475, VA1575, VA1675, VA1775

Credit Card Loans Outstanding— 

Business 

VA1476, VA1576, VA1676, VA1776

Lease Receivables 

VASUBxxx, VASUBxxx, VASUBxxx, 

VASUBxxx Consumer Loans—Total 

VA1482, VA1582, VA1682, VA1782

Loans on Deposits 

VA1483, VA1583, VA1683, VA1783

Home Improvement Loans (Not 

Secured by Real Estate) 

VA1484, VA1584, VA1684, VA1784

Education Loans 

VA1485, VA1585, VA1685, VA1785

Auto Loans 

VA1486, VA1586, VA1686, VA1786

Mobile Home Loans 

VA1487, VA1587, VA1687, VA1787

Credit Cards 

VA1488, VA1588, VA1688, VA1788

Other, Including Lease Receivables 

Request for Comments: OTS may not 

conduct or sponsor an information 

collection, and respondents are not 

required to respond to an information 

collection, unless the information 

collection displays a currently valid 

OMB control number. 

In this notice, OTS is soliciting 

comments concerning the following 

information collection. 

Statutory Requirement: 12 U.S.C. 

1464(v) imposes reporting requirements 

for savings associations. 

Type of Review: Revision of currently 

approved collections. 

Frequency of Response: Quarterly; 

Annually. 

Affected Public: Business or other forprofit. 

Estimated Number of Respondents: 

753 savings associations. 

Estimated Burden Hours per 

Respondent: 60.0 hours average for 

quarterly schedules and 2.0 hours 

average for schedules required only 

annually plus recordkeeping of an 

average of one hour per quarter. 

Estimated Total Annual Burden: 

188,712 burden hours. 

OTS is proposing to revise the TFR, 

which is currently an approved 

collection of information, in March 

2011. The effect on reporting burden of 

the proposed revisions to the TFR 

requirements will vary from institution 

to institution depending on the 

institution’s asset size and its 

involvement with the types of activities 

or transactions to which the proposed 

changes apply. 

The proposed TFR changes that 

would take effect as of March 31, 2011 

would change the reporting frequency 

for the number and market value of 

collective investment funds and 

common trust funds data reported in 

Memorandum Item 3 of Schedule FS, 

revise several existing lines, add new 

lines to the TFR, and add a new 

Schedule VIE, Variable Interest Entities. 

OTS estimates that the 

implementation of these reporting 

revisions will result in an increase in 

the current reporting burden imposed 

by the TFR on all savings associations. 

As part of the approval process, we 

invite comments addressing one or more 

of the following points: 

a. Whether the proposed revisions to 

the TFR collections of information are 

necessary for the proper performance of 

the agency’s functions, 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 

information collections on respondents, 

including through the use of automated 

collection techniques, the Internet, 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. 

OTS will summarize the comments 

received and include them in the 

request for OMB approval. All 

comments will become a matter of 

public record. 

Clearance Officer: Ira L. Mills, (202) 

906–6531, Office of Thrift Supervision, 

1700 G Street, NW., Washington, DC 

20552. 

OMB Reviewer: Desk Officer for OTS, 

FAX: (202) 395–6974, U.S. Office of 

Management and Budget, 725—17th 

Street, NW., Room 10235, Washington, 

DC 20503. 

mstockstill on DSKH9S0YB1PROD with NOTICES

61572 Federal Register / Vol. 75, No. 192 / Tuesday, October 5, 2010 / Notices 

Dated: September 29, 2010. 

Ira L. Mills, 

Paperwork Clearance Officer, Office of Chief 

Counsel, Office of Thrift Supervision. 

[FR Doc. 2010–24883 Filed 10–4–10; 8:45 am] 

BILLING CODE 6720–01–P 

DEPARTMENT OF THE TREASURY 

United States Mint 

Change to ‘‘Procedures To Qualify for 

Bulk Purchase of Silver Bullion Coins’’ 

AGENCY: United States Mint, Department 

of the Treasury. 

ACTION: Notice. 

SUMMARY: The United States Mint has 

revised the requirements to become an 

Authorized Purchaser of American 

Eagle Silver Bullion Coins. 

The revised qualification 

requirements are documented in the 

revised ‘‘Procedures to Qualify for Bulk 

Purchase of Silver Bullion Coins.’’ This 

document can be accessed at http:// 

www.usmint.gov/consumer/ 

index.cfm?action=AmericanEagles. 

These changes apply to new 

applications effective immediately. 

Significant modifications include the 

addition of the America the Beautiful 

Silver Bullion CoinTM; Program to the 

Background section, clarifications to the 

‘‘Purpose’’ section and ‘‘Marketing 

Support’’ section, and adjustments to the 

‘‘Experienced Market-Maker in Silver 

Bullion Coins’’ section and ‘‘Tangible 

Net Worth’’ section. Changes to the 

accounting certification requirements 

and agreement terms and conditions are 

also incorporated. 

A new section has been added 

entitled ‘‘Right to Temporarily Refrain 

from the Review of New Applications’’ 

during periods in which the allocation 

of a bullion product is required. Other 

minor changes have been made that 

provide further clarifications to various 

production descriptions and/or the 

silver bullion coin program in 

accordance with 31 U.S.C. 5112(e)&(f). 

FOR FURTHER INFORMATION CONTACT: B. B. 

Craig, Associate Director for Sales and 

Marketing; United States Mint; 801 9th 

Street, NW.; Washington, DC 20220; or 

call 202–354–7500. 

Authority: 31 U.S.C. 5112(e)&(f). 

Dated: September 30, 2010. 

Andrew D. Brunhart, 

Deputy Director, United States Mint. 

[FR Doc. 2010–24915 Filed 10–4–10; 8:45 am] 

BILLING CODE 4810–02–P 

DEPARTMENT OF THE TREASURY 

Office of Thrift Supervision 

[Docket ID OTS–2010–0030] 

Open Meeting of the OTS Mutual 

Savings Association Advisory 

Committee 

AGENCY: Department of the Treasury, 

Office of Thrift Supervision. 

ACTION: Notice of meeting. 

SUMMARY: The OTS Mutual Savings 

Associations Advisory Committee 

(MSAAC) will convene a meeting on 

Wednesday, October 20, 2010, 

beginning at 9:30 a.m. Eastern Time. 

The meeting will be open to the public. 

Members of the public interested in 

attending the meeting and members of 

the public who require auxiliary aid 

should e-mail OTS at 

mutualcommittee@ots.treas.gov or call 

(202) 906–6429 to obtain information on 

how to attend the meeting. 

DATES: The meeting will be held on 

Wednesday, October 20, 2010, at 9:30 

a.m. Eastern Time. 

ADDRESSES: The meeting will be held in 

Berkley B, Third Floor, Sheraton Boston 

Hotel, 39 Dalton Street, Boston, MA 

02199. The public is invited to submit 

written statements to the MSAAC by 

any one of the following methods: 

• E-mail address: 

mutualcommittee@ots.treas.gov; or 

• Mail: to Charlotte Bahin, Designated 

Federal Official, Office of Thrift 

Supervision, 1700 G Street, NW., 

Washington, DC 20552 in triplicate. 

The agency must receive statements 

no later than October 13, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Charlotte M. Bahin, Designated Federal 

Official, (202) 906–6452, Office of Thrift 

Supervision, 1700 G Street, NW., 

Washington, DC 20552. 

SUPPLEMENTARY INFORMATION: By this 

notice, the Office of Thrift Supervision 

is announcing that the OTS Mutual 

Savings Association Advisory 

Committee will convene a meeting on 

Wednesday, October 20, 2010, 

beginning at 9:30 a.m. Eastern Time. 

The meeting will be open to the public. 

Anyone wishing to attend the meeting, 

and members of the public who require 

auxiliary aid, must contact the Office of 

Thrift Supervision at 202–906–6429 or 

mutualcommittee@ots.treas.gov by 5 

p.m. Eastern Time on Wednesday, 

October 13, 2010, to inform OTS of his 

or her desire to attend the meeting and 

to obtain information on how to attend 

the meeting. The purpose of the meeting 

is to advise OTS on what regulatory 

changes or other steps OTS may be able 

to take to ensure the continued health 

and viability of mutual savings 

associations, and other issues of concern 

to the existing mutual savings 

associations. 

Dated: September 29, 2010. 

By the Office of Thrift Supervision. 

Deborah Dakin, 

Acting Chief Counsel. 

[FR Doc. 2010–24846 Filed 10–4–10; 8:45 am] 

BILLING CODE P 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

Additional Identifying Information 

Associated With Persons Whose 

Property and Interests in Property Are 

Blocked Pursuant to the Executive 

Order of September 28, 2010, 

‘‘Blocking Property of Certain Persons 

With Respect to Serious Human Rights 

Abuses by the Government of Iran and 

Taking Certain Other Actions’’ 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Notice. 

SUMMARY: The Treasury Department’s 

Office of Foreign Assets Control 

(‘‘OFAC’’) is publishing additional 

identifying information associated with 

the eight individuals listed in the Annex 

to the Executive Order of September 28, 

2010, ‘‘Blocking Property of Certain 

Persons With Respect to Serious Human 

Rights Abuses by the Government of 

Iran and Taking Certain Other Actions,’’ 

whose property and interests in 

property are therefore blocked. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director, Compliance 

Outreach & Implementation, Office of 

Foreign Assets Control, Department of 

the Treasury, 1500 Pennsylvania 

Avenue NW., (Treasury Annex), 

Washington, DC 20220, Tel.: 202–622– 

2490. 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning OFAC are 

available from OFAC’s Web site 

(www.treas.gov/ofac) or via facsimile 

through a 24-hour fax-on-demand 

service, Tel.: 202–622–0077. 

Background 

On September 28, 2010, the President 

issued the Executive Order ‘‘Blocking 

Property of Certain Persons With 

Respect to Serious Human Rights 

Abuses by the Government of Iran and 

Taking Certain Other Actions’’ (the 

‘‘Order’’) pursuant to, inter alia, the 

mstockstill on DSKH9S0YB1PROD with NOTICES