National banks and Federal savings
associations must comply with rules of the Federal Reserve Board
regarding extensions of credit to insiders (Regulation O) and
transactions with affiliates (Regulation W), which implement
section 22 and sections 23A and 23B, respectively, of the Federal
Reserve Act (FRA). Twelve CFR part 31 and 12 CFR 163.41 and 163.43
address these transactions for national banks and Federal savings
associations, respectively. Specifically, § 31.2 requires national
banks to comply with Regulation O. Appendix A to part 31 provides
interpretive guidance on the application of Regulation W to
deposits between affiliated banks. Sections 163.41 and 163.43
contain general statements that refer Federal savings associations
to applicable regulations of the Federal Reserve Board,
specifically, Regulation O and Regulation W. The OCC has issued a
final rule that consolidates its rules that address insider lending
and affiliate transactions by amending part 31 to state clearly
that both national banks and Federal savings associations must
comply with Regulation O and Regulation W. New § 31.3(c) implements
the statutory standards for authorizing an exemption from section
23A of the FRA or section 11 of the Home Owners’ Loan Act (HOLA) in
accordance with section 608 of the Dodd-Frank Act. Section 608,
which became effective on July 21, 2012, amends section 23A of the
FRA and section 11 of the HOLA to authorize the OCC to exempt, by
order, a transaction of a national bank or Federal savings
association, respectively, from the affiliate transaction
requirements of section 23A and section 11 of the HOLA if: (1) the
OCC and the Federal Reserve Board jointly find the exemption to be
in the public interest and consistent with the purposes of section
23A or section 11; and (2) within 60 days of receiving notice of
such finding, the FDIC does not object in writing to the finding
based on a determination that the exemption presents an
unacceptable risk to the Deposit Insurance Fund. The information
collection requirement contained in the final rule are found in new
§ 31.3(d), which sets forth procedures that a national bank and
Federal savings association must follow to request such exemptions.
These procedures are modeled after the Federal Reserve Board’s
existing procedures in Regulation W. The OCC submitted the
information collection requirements imposed by the final rule to
OMB at the proposed rule stage, 81 FR 13607 (March 14, 2016). OMB
filed a comment, instructing the OCC to examine public comment in
response to the proposed rule and include in the supporting
statement of the next submission, to be submitted to OMB at the
final rule stage, a description of how the OCC has responded to any
public comments on the collection, including comments on maximizing
the practical utility of the collection and minimizing the burden.
The OCC received no comments regarding the information collection
and has resubmitted it to OMB for review in connection with the
final rule.
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.
1557-0336 8-30-16 4PM.doc
Exemption Request