1550-0007 (Supporting Statement)

SUPPORTING STATEMENT
Application for Conversion From: (a) OTS-Regulated, State-Chartered
Savings Association to Federal Savings Association; (b) National Bank,
Commercial Bank, State Savings Bank, or Credit Union to
Federal Savings Association
OMB Control No. 1550-0007

A.

JUSTIFICATION

1.

Circumstances and Need

Section 5 of the Home Owners’ Loan Act authorizes the Office of Thrift Supervision
(OTS) to act on applications submitted by depository institutions requesting permission
to convert to a Federal savings association charter. 12 C.F.R. §§ 543.8, 543.9 and
552.2-6 codify the eligibility requirements and establish processing procedures for
applications involving the conversion of a depository institution to a Federally chartered
association of the same organizational type (i.e., mutual or stock form of ownership).
The application form for conversion requires the applicant to submit: (1) its plan of
conversion; (2) a copy of its current charter and bylaws; (3) a copy of the proposed
charter and bylaws; and, (4) certification of counsel that the charter conforms to OTS’s
requirements. Converting depository institutions must also submit: (1) a list of all
activities and investments currently allowed for the institution under state law or by its
current primary regulator but not permitted for Federal associations, with an indication of
whether the applicant wishes OTS approval to continue to engage in such activities or
investments as a Federal association, pursuant to OTS’s grandfathering authority; (2)
the appropriate statutory cite under state law that authorized such activities or
investments; and, (3) copies of applicable state law provisions.
Third Party Requirements
OTS regulations require depository institutions to publish a public notice of the
application for conversion in accordance with the procedures specified in 12 C.F.R. 516.
2.

Use of Information Collected

The application is reviewed at the Regional Office to determine whether it meets
applicable eligibility requirements for conversion and complies with applicable OTS
policies. Applications are also reviewed to determine whether special conditions are
needed to establish the institution’s authority to continue activities or investments
permitted under state law but not authorized for a Federal association.

Supporting Statement
Charter Conversions
Page 2

3.

Use of Technology to Reduce Burden

This information collection is not amenable to reduction through improved technology.
Since automated information systems may be used in a very limited capacity to obtain
or process the information required by the proposed information collection, and because
these systems vary from institution to institution, the use of improved technology to
reduce the burden is not applicable.
4.

Efforts to Identify Duplication

This information collection is not duplicative within the meaning of the PRA and OMB
regulations. Information that is similar to or that corresponds to information that could
serve OTS's purpose and need in this information collection is not being collected by
any other means or for any other purpose; nor is this information otherwise available in
the detail necessary to satisfy the purpose and need for which this collection of
information is undertaken. Each transaction is unique, thus the association submits
documentation peculiar to each such transaction.
5.

Minimizing the Burden on Small Firms

The information collection does not differentiate information requirements on the basis
of an institution’s size.
6.

Consequences of Less Frequent Collection

OTS would not be able to properly evaluate whether the requested conversion meets
applicable statutory and regulatory requirements if the information required by the
application were not collected.
7.

Special Circumstances

This information collection is conducted in a manner consistent with the guidelines set
out in 5 C.F.R. § 1320. There are no specific recordkeeping requirements imposed by
this information collection.
8.

Consultation with Persons Outside the OTS

Notice of intent to renew this information collection was published in the Federal
Register on October 20, 2006 (71 FR 62048). One comment was received from a trade
association stating that, although OTS stated in its October 20th notice that it was
making technical, non-substantive changes to Form 1582, it should have more
thoroughly described what those changes are in order to obtain useful comments from

Supporting Statement
Charter Conversions
Page 3
the public. The commenter also suggested that OTS request applicants to submit
additional information with the form. Having taken these comments into consideration,
OTS has made a red-lined version of the form available on the OTS website. However,
OTS does not agree with the commenter that additional information must be submitted
with the form for OTS to render a decision on applications for conversion.
9.

Payment of Respondents

OTS provides no payment or gift to respondents.
10.

Confidentiality

12 C.F.R. Part 505 provides that certain application information will not be available to
the public. Information exempt from public disclosure under this regulation includes: (1)
information exempt from public disclosure by statute or executive order; (2) information
contained or related to examination, operating, or condition reports prepared by OTS;
and, (3) privileged information or information related to the business, personal, or
financial affairs of any person and furnished in confidence.
11.

Information of a Sensitive Nature

No questions of a sensitive nature are included in this collection of information.
12.

Estimate of Annual Hour Burden

The total annual hour burden to the respondents is estimated at four (4) per submission
with 18 submissions, totaling 72 hours.
4
× 18
72
- 68
4
13.

Hours per respondent
Submissions
Total annual hour burden estimate
Current OMB Inventory
Increase

Estimate of Annual Cost

The annual cost estimate for filing applications:
a) Conversion of OTS-regulated, state-chartered savings associations to Federal
savings associations:
Filing Fee
$ 100
×

Respondent
8

Total
$ 800

Supporting Statement
Charter Conversions
Page 4
b) Conversion of national banks, commercial banks, state savings banks, or
credit unions to Federal savings associations:
$5,000
Total =

×

10

$ 50,000
$ 50,800

In addition:
Total Annual Hour Estimate - 72
Per Hour
× 50
Total Annual Hour Cost Estimate

14.

$

3,600

$ 54,400

Estimates of Annualized Cost to Government

It is estimated that the total annualized cost to the government will be minimal because:
(1) this information is already being collected and evaluated; (2) there will not be any
type of developmental or computer costs; and (3) no new employees will be hired to
evaluate the information.
15.

Reason for Change in Burden

The increase in burden reflects a projected increase in applications received by OTS
from 17 to 18 respondents.
16.

Publication

Not applicable.
17.

Expiration Date

OTS is displaying the expiration date on the form.
18.

Exceptions

There are no exceptions to the certification on OMB Form 83-I.
B.

COLLECTION OF INFORMATION EMPLOYING STATISTICAL METHODS

Not applicable.