EZCLEAR.stm

SUPPORTING STATEMENT
Justification for:
31 CFR PART 321, “ Payments by Banks and Other Financial
Institutions of United States Savings Bonds and United
States Savings Notes (Freedom Shares).”
1. Explain the circumstances that make the collection of
information necessary. Identify any legal or
administrative requirements that necessitate the
collection. Under savings bond regulations qualified
financial institutions are authorized to transmit and
receive settlement for paid savings bonds through the
Federal Reserve check collection system (EZ CLEAR) and
to pay such securities upon the request of a surviving
beneficiary.
2. Indicate how, by whom, and for what purpose the
information is to be used. Used to identify the
securities involved and to determine that payment was
made to the person(s) entitled, and to determine the
amount paid and the paying agent. Without the
information, the transaction cannot be completed.

3. Describe whether, and to what extent, the collection
of information involves the use of automated,
electronic, mechanical, or other technological
collection techniques or other forms of information
technology. What consideration is given to use
information technology to reduce burden?
The EZ CLEAR system allows financial institutions to
submit paid savings bonds and savings notes through
the Federal Reserve’s check collection system. The
system streamlines the agents’ internal accounting
systems and substantially reduces the burden of
information.
4. Describe efforts to identify duplication. Why can’t
any similar information already available be used or
modified for use for the purposes described in item 2
above? Duplicate information is not requested.
5. If the collection of information impacts small
business or other small entities describe any methods

used to minimize burden? This collection of
information does not impact small business or other
small entities.
6. What consequences to Federal program or policy
activities and what, if any, technical or legal
obstacles to reducing burden will occur if this
collection is not conducted or is conducted less
frequently? N/A
7. Is this collection of information conducted in a
manner consistent with the guidelines of 5 CFR 1320.6?
The collection of information cannot be conducted less
frequently because the collection is initiated for a
single purpose.
8. What effort was made to notify the general public
about this collection of information? The Bureau’s
notice was published in the Federal Register on August
14, 2006, Page 46537. No comments were received.
9. What decision was made to provide any payment or gift
to respondents, other than reenumeration of
contractors or grantees? N/A
10. What assurance of confidentiality was provided to
respondents and what was the basis for the assurance in
statute, regulations, or agency policy? In accordance
with the Privacy Act of 1974, information furnished by
the public is assured confidentiality.
11. What justification is there for questions of a
sensitive nature? There are no questions of a sensitive
nature.
12. What is the estimated hour burden of this collection
of information?
Burden estimates were derived from the total savings bond
redemption data for FY 2005 with an understanding that
the Bureau regulates a recordkeeping retention period of
1 year.
Burden
Annual Responses
Respondents
Responses per

Measures
Notes
47,516,700 Annual Redemptions
Savings Bond Paying
36,300
Agents
1,309 Redemptions / Agents

Respondent
Time per Response
Responses per
Hour

4 Seconds
900

Reporting Hours

52,778

Recordkeepers

36,300

Hours per
Recordkeeper
Recordkeeping
Hours
Annual Burden
Hours

.095
3,449
56,227

Time to Create
Reporting Document
60 Seconds / 4
Seconds * 60 Minutes
Annual Responses /
Responses per Hour
Savings Bond Paying
Agents
Time to Image
Redeemed Bonds
Recordkeepers * Hours
per Recordkeeper
Reporting Hours +
Recordkeeping Hours

13.
What is the estimated total annual cost burden to
respondents or recordkeepers resulting from this
collection of information? Estimated cost burden to
respondents is not available.
14.

What is the annualized cost to the Federal
Government?
Burden estimates were derived from the total Bureau data
for FY 2005 attributable to the redemptions of savings
bonds; they reflect an annual workload of 47.5 million
bonds redeemed.
Cost Category
Bureau Operations
FRB
Reimbursements
Paying Agent Fees
TOTAL

Amount
$12,895,000
10,499,000
11,782,000
$35,176,000

15.

What is the reason for any program changes or
adjustments reported in Items 13 or 14 of the OMB
Form 83-I? Figures were adjusted to reflect the
current totals.

16.

For collections of information whose results will
be published, outline plans for tabulation and
publication. The results of the collection of this
information will not be published for statistical
use.

17.

If seeking approval to not display the expiration
date for OMB approval of this information
collection, what are the reasons that the display
would be inappropriate? N/A

18.

What are the exceptions to the certification
statement? N/A