0168 Justification 7-2013

SUPPORTING STATEMENT FOR PAPERWORK REDUCTION ACT SUBMISSIONS
Maximum Borrowing Authority, 12 CFR 741.2
3133-0168
July 2013

A. Justification
For a Collection of Information by the National Credit Union Administration
1. Explain the circumstances that make the collection of information necessary.
Identify any legal or administrative requirements that necessitate the collection.
Section 741.2 of the NCUA Rules and Regulations (12 CFR 741.2) places a maximum
borrowing limitation on federally insured credit unions of 50 percent of paid-in and
unimpaired capital and surplus. This limitation is statutory for federal credit unions.
The collection of information requirement is for federally insured state-chartered credit
unions seeking a waiver from the borrowing limit. These credit unions must submit a
detailed safety and soundness analysis, a proposed aggregate amount, a letter from
the state regulator approving the request and an explanation of the need for the waiver
to the NCUA Regional Director. This collection of information is necessary to protect
the National Credit Union Share Insurance Fund (“Fund”). The NCUA Board has
determined that borrowing in excess of 50 percent of paid-in and unimpaired capital
and surplus may cause an undue risk to the Fund and a loss of confidence in the credit
union system. The NCUA must be made aware of and be able to monitor those credit
unions seeking a waiver from the requirement.

2. Indicate how, by whom, how frequently, and for what purpose the information
is to be used. Except for a new collection, indicate the actual use the agency has
made of the information received from the current collection.
The information will be used by NCUA to determine whether or not a particular federally
insured state-chartered credit union will be granted a waiver from the maximum
borrowing limitation. Borrowing in excess of this amount without the proper safety and
soundness limitations in place may cause direct losses to the Fund and indirect losses
to all federally insured credit unions since they capitalize and maintain the Fund.

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, e.g. permitting electronic
submission of responses, and the basis for the decision for adopting this means
of collection. Also describe any consideration of using information technology to
reduce burden.

Not applicable.

4. Describe efforts to identity duplication. Show specifically why any similar
information already available cannot be used or modified for use for the purposes
described in Item 2 above.
There is no duplication. This information is not otherwise reported by credit unions and
only requires credit unions seeking a waiver to provide an explanation for their need for
a waiver.

5. If the collection of information impacts small businesses or other small
entities (item 5 of OMB Form 83-I), describe any methods used to minimize
burden.
The information requested by this collection is required to be supplied only once by
each credit union seeking a waiver. This is a minimal burden.

6. Describe the consequences to Federal program or policy activities if the
collection is not conducted or is conducted less frequently, as well as any
technical or legal obstacles to reducing burden.
Since this is only a one-time requirement, the submission is required as infrequently as
possible. Less frequent collection would not promote safety and soundness for
federally insured state-chartered credit unions.

7. Explain any special circumstances that would cause an informational
collection to be conducted in a manner:


requiring respondents to report information to the agency more often than
quarterly;



requiring respondents to prepare a written response to a collection of
information in fewer than 30 days after receipt of it;



requiring respondents to submit more than an original and two copies of any
document;



requiring respondents to retain records, other than health, medical,
government contract, grant-in-aid, or tax records for more than three years;



in connection with a statistical survey, that is not designed to produce valid
and reliable results that can be generalized to the universe of study;



requiring the use of a statistical data classification that has not been reviewed
and approved by OMB;



that includes a pledge of confidentiality that is not supported by authority
established in statue or regulation, that is not supported by the disclosure and
data security policies that are consistent with the pledge, or which
unnecessarily impedes sharing of data with other agencies for compatible
confidential use; or



requiring respondents to submit proprietary trade secret, or other confidential
information unless the agency can demonstrate that it has instituted
procedures to protect the information’s confidentiality to the extent permitted
by law.

None – the collection is conducted within the Guidelines.
8. Describe efforts to consult with persons outside the agency to obtain their
views on the availability of data, frequency of collection, the clarity of instructions
and recordkeeping, disclosure, or reporting format (if any), and on the data
elements to be recorded, disclosed, or reported.
Notice of the proposed collection and request for public comment was published with a
60-day comment period in the Federal Register on July 19, 2013 (78 FR 43244). No
comments were received regarding this collection.
9. Explain any decision to provide any payment or gift to respondents, other than
remuneration of contractors or grantees.
There is no payment or gift to respondents.

10. Describe any assurance of confidentiality provided to respondents and the
basis for the assurance in statute, regulation, or agency policy.
Credit union examination reports and any documents directly related are exempt from
the Freedom of Information Act, pursuant to exemption 8, 5 U.S.C. 552(b)(8).

11. Provide additional justification for any questions of a sensitive nature, such
as sexual behavior and attitudes, religious beliefs, and other matters that are
commonly considered private. This justification should include the reasons why
the agency considers the questions necessary, the specific uses to be made of
the information, the explanation to be given to persons from whom the
information is requested, and any steps to be taken to obtain their consent.

There are no questions of a sensitive nature.

12. Provide estimates of hour burden of the collection of information. The
statement should:


Indicate the number of respondents, frequency of response, annual hour
burden, and explanation of how the burden was estimated. Unless directed to
do so, agencies should not conduct special surveys to obtain information on
which to base hour burden estimates. Consultation with a sample (fewer than
10) of potential respondents is desirable. If the hour burden on respondents
is expected to vary widely because of differences in activity, size, or
complexity show the range of estimated hour burden, and explain the reasons
for the variance. Generally, estimates should not include burden hours for
customary and usual business practices.



If this request for approval covers more than one form, provide separate hour
burden estimates for each form and aggregate the hour burdens in Item 13 of
OMB Form 83-I.



Provide estimates of annualized cost to respondents for the hour burdens for
collections of information, identifying and using appropriate wage rate
categories. The cost of contracting out or paying outside parties for
information collection activities should not be included here. Instead, this
cost should be included in Item 14.

It is projected that 2 credit unions will submit an exemption request, on a one-time
basis, annually. The time estimated for each credit union fulfilling this requirement is 8
hours. NCUA believes 8 hours is a reasonable amount of time needed to provide such
an explanation. The hour burden for the collection is 16 hours at a rate of $31, totaling
$496.

13. Provide an estimate of the total annual cost burden to respondents or
recordkeepers resulting from the collection of information. (Do not include the
cost of any hour burden shown in Items 12 and 14).
Based on the total respondents of 2 at an average completion time of 8 hours and an
average hourly cost of $31, the total burden is $496.

14. Provide estimates of annualized cost to the Federal Government. Also,
provide a description of the method used to estimate cost, which should include
quantification of hours, operational expenses (such as equipment, overhead,
printing, and support staff), and any other expense that would not have been

incurred without this collection of information. Agencies also may aggregate
cost estimates from Items 12, 13, and 14 in a single table.
It is estimated the NCUA spends 4 hours reviewing each credit union submission. We
estimate a $25 average hourly cost for NCUA’s time. Therefore, the estimated cost to
the Federal government is $200.

15. Explain the reasons for any program changes or adjustments reported in
Items 13 or 14 of the OMB Form 83-I.
This is a reinstatement of a previously approved collection. There are no program
changes or adjustments.

16. For collections of information whose results will be published, outline plans
for tabulation and publication. Address any complex analytical techniques that
will be used. Provide the time schedule for the entire project, including
beginning and ending dates of the collection of information, completion of report,
publication dates, and other actions.
The results will not be published, therefore, this is not applicable.

17. If seeking approval to not display the expiration date for OMB approval of the
information collection, explain the reasons that display would be inappropriate.
NCUA is not seeking approval to not display the expiration date..

18. Explain each exception to the certification statement identified in Item 19,
“Certification for Paperwork Reduction Act Submissions,” of OMB Form 83-I.
There are no exceptions to the certification statement.