The FDIC is requesting OMB approval for three collections of information related to a proposed amendment to the FDICÂs assessment regulations that would require insured depository institutions to prepay, on December 30, 2009, their estimated quarterly risk-based assessments for the fourth quarter of 2009, and for all of 2010, 2011, and 2012. The FDIC would begin to offset prepaid assessments on March 30, 2010, representing payment for the fourth quarter of 2009. Any prepaid assessment not exhausted by December 30, 2014, would be returned to the institution. The notice of proposed rulemaking appears at 74 Fed. Reg. 51063 (Oct. 2, 2009).
The FDIC would determine which of its insured depository institutions should be exempt from prepaying its assessments for the next three years. In addition, an insured depository institution could apply to the FDIC for an exemption from its assessment prepayment; the application would explain why the prepayment would significantly impair the institutionÂs liquidity, or would otherwise create significant hardship, would contain a full explanation of the need for the exemption and include supporting documentation and any information the FDIC may request. Also, an institution that is exempted by the FDIC may request that the exemption be withdrawn.
In addition, when an insured depository institution enters into an agreement to transfer any portion of its prepaid assessment to another insured depository institution, it would be required to notify the FDIC of that transaction by submitting a written agreement signed by the legal representatives of both institutions, including documentation that each representative has the legal authority to bind the institution.
The FDIC, in its supplemental initial Paperwork Reduction Act notice (74 F.R. 52697 (Oct. 14, 2009)), requested comment on the estimated paperwork burden, both as to exemption requests and assessment transfer notices. No comments were received. The FDIC plans to follow this emergency request with a request through normal clearance procedures and, in that process, will fully consider comments on minimizing burden.
The Prepaid Assessments Final Rule is expected to be approved by the FDIC Board of Directors on November 12, 2009. Requests for exemption or requests for withdrawal of exemption are due by December 1, 2009, and the FDIC expects to notify applicants of its decisions as to exemption or withdrawal of exemption by December 15, 2009. The prepaid assessments are due December 30, 2009. Therefore, it is imperative that this Rule be implemented immediately upon publication. We apologize for the time constraints; however, the FDIC has determined that this request is dictated by the exigencies of the current situation.
In compliance with the requirements of 5 C.F.R. 1320.13, the FDIC has further determined (1) that the collection of information contained in the Prepaid Assessments Final Rule, regarding exemptions, is needed prior to the end of the time periods established in 5 C.F.R. Part 1320; (2) that replenishing the liquid assets in the DIF is essential to the FDICÂs mission to maintain the stability of and public confidence in the nationÂs financial system; and (3) that the use of normal clearance procedures would disrupt the collection of information. The collection also includes a provision regarding notices of assessment transfers.
US Code:
12 USC 1817(b)
Name of Law: Federal Deposit Insurance Act
US Code:
12 USC 1817(c)
Name of Law: Federal Deposit Insurance Act
These are three new collections, Prepaid Assessment Exemption Request, Prepaid Assessments - Request Not To Be Exempt, and Prepaid Assessment Transfer.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.
Supporting_Statement_Prepaid_Assessments_11-9-09_Final.doc
Emergency Clearance Request Letter - Prepaid Assessments Rule A1FST1050_EXCHANGE_09252009-113638.PDF
Prepaid Assessments - Request for Withdrawal of Exemption