1550.0018.Supporting.Statement[1]03.02.2011

1550.0018.Supporting.Statement[1]03.02.2011.doc

Amendment of a Savings Association Charter

OMB: 1550-0018

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Supporting Statement

Charter Amendment

Page 3


SUPPORTING STATEMENT

Amendment of a Federal Savings Association Charter

OMB Control No. 1550-0018




A. JUSTIFICATION


1. Circumstances and Need


The charter of an insured federal savings association is a formal document created when a savings association establishes its corporate existence. The charter states the scope, purpose and duration for the corporate entity. Also, for a federally chartered savings association, the charter confirms that the board of directors has formally committed the institution to Section 5 of the Home Owners’ Loan Act (“HOLA”) and other applicable statutes and regulations governing federally chartered savings associations. See 12 U.S.C. 1464.


Pursuant to 12 CFR 544.2(a)(1) and 552.4(a)(1), a savings association’s board of directors must adopt a resolution proposing the charter amendment that states the text of such amendment. If the proposed charter amendment would render more difficult or discourage a merger, proxy contest, the assumption of control by a mutual accountholder of the association, or the removal of incumbent management, or involve a significant issue of law or policy, the institution must file an application requesting the prior written approval of the Office of Thrift Supervision (“OTS”). The application must be submitted in letter form because OTS does not provide standard application forms for this type of application. The rule cites charter provisions addressing home office designations under 12 CFR 544.2(b)(3) and 552.4(b)(2). The remaining charter provisions covered by this information collection requirement are unaffected, but are included in the overall burden estimates discussed below.


If the charter amendment does not affect the potential change of control of the institution or raise significant issues of law or policy, the institution must submit a notice to OTS 30 days before the effective date of the charter amendment, in accordance with 12 C.F.R. 544.2(a)(2)(ii) and 552.4(a)(2)(ii).


There are no third-party requirements.


2. Use of Information Collected


All federally chartered savings associations are required to file charter amendment applications or notices with OTS. OTS Regional Office staff review the applications and notices to determine whether the charter amendments comply with the regulations and OTS policy.


3. Use of Technology to Reduce Burden


Currently, this information collection is not amenable to reduction through improved technology.


4. Efforts to Identify Duplication


OTS does not collect the information requested in any other way.


5. Minimizing the Burden on Small Firms


The burden is likely to be smaller for smaller savings associations with less complex charters.


6. Consequences of Less Frequent Collection


Since the information is submitted only once for each proposed amendment of a charter and each such amendment is unique, it would be impossible for OTS to evaluate the proposed charter amendment if the required information were not submitted each time it was proposed.


7. Special Circumstances


This information collection is conducted in a manner consistent with 12 C.F.R. Section 1320.6.


8. Consultations with Persons Outside OTS


Notice of intent to renew this information collection was published in the Federal Register on April 18, 2011 (76 FR 21801). OTS has not received any comments.


9. Payment of Respondents


OTS provides no payment or gift to respondents.


10. Confidentiality


OTS releases all of the information collected, except materials the disclosure of which would result in an invasion of personal privacy, impair the financial stability of the reporting entities, or otherwise adversely affect any public or private interest, in conformity with Department of Treasury regulations and 5 U.S.C. 552.


11. Information of a Sensitive Nature


No questions of a sensitive nature are involved in the information collection process for the amendment of a charter.


12. Estimate of Annual Hour Burden


The total annual hour burden to the respondents is estimated at 6 hours representing 1 respondent’s submission of a notice at 6 hours per response.


13. Estimate of Annual Cost


The total annual cost to the respondents is estimated at $2,000; 6 hours at $100 per hour plus $1,400 ($1,400x 1) in filing fees.


14. Estimate of Annualized Cost to Government


The cost to the government to process one charter application is $1,400, which are the total filing fees based on estimated burden hours to review the notices and application.


15. Reason for Change in Burden


The decrease in burden in the amount of (150) hours is an adjustment due to a reduction in the number of respondents.


16. Publication


Not applicable.


17. Expiration Date


Not applicable.


18. Exceptions


There are no exceptions to the certification on OMB form 83-1.





B. COLLECTION OF INFORMATION EMPLOYING STATISTICAL

METHODS


Not applicable.

File Typeapplication/msword
File TitleSUPPORTING STATEMENT FOR SUBMISSION FOR
AuthorPAMELA SCHAAR
Last Modified ByIra Mills
File Modified2011-06-17
File Created2011-03-02

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