FR1583_20160830_omb

Supporting Statement for the
Notice of Proposed Declaration of Dividend
(FR 1583; OMB No. 7100-0339)
Summary
The Board of Governors of the Federal Reserve System (Board), under delegated
authority from the Office of Management and Budget (OMB), proposes to extend for three years,
with revision, the mandatory Notice of Proposed Declaration of Dividend (FR 1583; OMB No.
7100-0339). The FR 1583 is used to collect information on all dividends declared by a
subsidiary savings association of a savings and loan holding company (SLHC). The current
annual reporting burden for the FR 1583 is estimated to be 73 hours and would remain
unchanged with the proposed revisions.
Background and Justification
Section 10(f) of the Home Owners’ Loan Act, as amended (HOLA) (12 U.S.C. §
1467a(f)), and section 238.101 of Regulation LL, Savings and Loan Holding Companies, (12
CFR 238.101) provide that every savings association that is a subsidiary of an SLHC is required
to provide the Federal Reserve at least 30 days’ prior notice of any dividend that its board of
directors intends to declare.
Description of Information Collection
Savings association subsidiaries of SLHCs provide prior notice of a dividend by filing
form FR 1583 that requires information on 1) the date of the filing, 2) the nature and amount of
the proposed dividend declaration, and 3) the names and signatures of the executive officer and
secretary of the savings association that have provided the notice. The savings association
subsidiary must file this prior notice at least 30 days before the proposed declaration of a
dividend by its board of directors. This notice may include a schedule proposing dividends of
over a specified period, up to 12 months.
The statute also provides that the 30 day period commences on the date of receipt of the
complete record of the notice by the Federal Reserve. The Federal Reserve Board may request
additional information or may impose conditions for the dividend and may determine that such
dividend does not comply with the requirements of 12 CFR Part 238, subpart K.
Proposed Revisions
The Board proposes to change all references to the Office of Thrift Supervision (OTS)
with references to the Board or the Reserve Banks and all citations to the former OTS regulations
with citations to the Board’s Regulation LL. With respect to information that is included in the
form, the Board proposes to require the nature of dividend to be identified (e.g., cash, stock) that
the savings association subsidiary’s board of directors intends to distribute. Finally, the Board
proposes several stylistic and grammatical changes to the form and instructions.

Time Schedule for Information Collection
This information collection is event generated. Any savings association that is a
subsidiary of a savings and loan holding company must file a notice with the appropriate Reserve
Bank at least 30 days before a proposed declaration of a dividend by its board of directors.
Legal Status
The Board’s Legal Division had determined that FR 1583 is authorized by section 10(f)
of the Home Owners’ Loan Act, as amended (12 U.S.C. § 1467a(f)), and provides that every
subsidiary savings association of an SLHC shall give the Board at least 30 days’ advance notice
of the proposed declaration by its directors of any stock dividend. The obligation to respond is
mandatory.
The FR 1583 collects information concerning the amount of capital that an SLHC’s
subsidiary savings association intends to distribute. Specifically, the form asks for the name and
address of the savings association, the date of the filing, the nature and amount of the proposed
dividend declaration, and the names and signatures of the executive officer and secretary of the
savings association.
The information collected on the FR 1583 is generally not considered confidential. It is
possible that a savings association or SHLC could seek confidential treatment under the Freedom
of Informaton Act (FOIA) exemption 4 (5 U.S.C. § 552(b)(4)) for the nature and amount of the
proposed dividend declaration, in which case the institution would need to submit a request
stating that disclosure of the specific information would likely result in substantial harm to its
competitive position and demonstrating the specific nature of the harm that would result from
public release of the information. FOIA exemption 4 covers commercial or financial information
obtained from a person that is privileged or confidential. The determination of whether
confidential treatment should be granted will have be made on a case-by-case basis.
Consultation Outside the Agency
On June 1, 2016, the Board published a notice in the Federal Register (81 FR 35015)
requesting public comment for 60 days on the extension, with revision, of the FR 1583. The
comment period for this notice expired on August 1, 2016. The Board did not receive any
comments. On August 17, 2016, the Board published a final notice in the Federal Register
(81 FR 54804).
Estimates of Respondent Burden
The annual reporting burden for FR 1583 is estimated to be 73 hours as shown in the
following table. These reporting requirements represent less than 1 percent of total Federal
Reserve System paperwork burden.

2

FR 1583
Notice of Proposed
Declaration of Dividend

Number of
respondents1

Annual
frequency2

Estimated
average time
per response

133

2

16.5 minutes

Estimated
annual burden
hours
73

The total annual cost to the public for this information collection is estimated to be $3,880.3
Sensitive Questions
This collection of information contains no questions of a sensitive nature, as defined by
OMB guidelines.
Estimate of Cost to the Federal Reserve System
The estimated cost to the Federal Reserve System for collecting and processing these
reports is negligible.

1

Of these respondents, 77 are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $550 million in total assets) www.sba.gov/contracting/getting-started-contractor/make-sureyou-meet-sba-size-standards/table-small-business-size-standards.
2
Average number of FR 1583 forms received annually, per respondent, in 2015.
3
Total cost to the public was estimated using the following formula: percent of staff time, multiplied by annual
burden hours, multiplied by hourly rates (30% Office & Administrative Support at $17, 45% Financial Managers at
$65, 15% Lawyers at $66, and 10% Chief Executives at $89). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor and Statistics (BLS), Occupational Employment and Wages
May 2015, published March 30, 2016 www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined using
the BLS Occupational Classification System, www.bls.gov/soc/.

3