FINAL_3133-0015_Supporting Statement

National Credit Union Administration
Supporting Statement
Chartering and Field of Membership Manual, 12 CFR 701.1, App. B to Part 701
OMB Control Number 3133-0015

A.

Justification

1.

Necessity of Information Collection

The Federal Credit Union (FCU) Act requires the National Credit Union Administration
(NCUA) Board to administer chartering and field of membership requirements for FCUs, as
prescribed by12 U.S.C. 1759. The NCUA Board adopted the Chartering and Field of
Membership Manual (Chartering Manual), and codified into NCUA’s regulations as Appendix
B to 12 CFR Part 701.
The requirements of the FCU Act, as implemented by the Chartering Manual, Chapters 1
through 4, and the appendices, necessitate the NCUA collect certain information. The
Chartering Manual codifies policy and provide guidelines. The Credit Union Membership
Access Act of 1998 provided a choice among three charter types:
•
•
•

single group sharing a single occupational or associational common bond,
multiple common bond, with each group having a distinct occupational or associational
common bond, and
community common bond among persons or organizations with a well-defined local
community, neighborhood or rural district.

The FCU Act also provides for FCUs to add underserved areas and includes the requirements
for conversion from federal to state credit union and state to federal credit union.
2.

Purpose and Use of the Information Collection

The NCUA uses the information to determine if the charter application, field of membership
amendment, or conversion application meets the above-referenced requirements of the FCU Act
and NCUA regulations.
Each chapter and the appendices contain various information collections related to these
requirements, as follows:
•

In Chapter 1, Before NCUA approves an organization certificate (charter of a new credit
union), NCUA must conduct an investigation to determine (1) if the organization
certificate conforms to the FCU Act’s requirements; (2) the general character and fitness
of the subscribers to the charter; and (3) the economic advisability of establishing the
proposed FCU. Forms NCUA 4001, Federal Credit Union Investigation Report, and

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4012, Report of Official and Agreement to Serve, also are required to meet this
investigation need. In addition, proposed FCU organizers must submit business plans,
wording for their proposed fields of membership, and complete NCUA 4008,
Organization Certificate, 9500, Application and Agreement for Insurance of Accounts,
and 9501, Certification of Resolutions.
•

In Chapter 2, an FCU can apply to NCUA to amend its field of membership. The FCU
must provide sufficient information to permit NCUA to make the determination. Single
or multiple common bond FCUs can submit formal written requests using either the
Application for Field of Membership Amendment (NCUA 4015) or a shorter form 4015EZ (for groups of less than 3,000 potential members). NCUA previously designed the
forms to reduce both the time FCUs spend submitting, and the time the NCUA spends
reviewing, this information. NCUA also offers FCUs an electronic alternative to
submitting the 4015-EZ by using the “Field of Membership Internet Application,”
known as FOMIA, found at: https://www.ncua.gov/services/Pages/field-of-membershipchartering/application.aspx. The change to the Chartering and Field of Membership
Manual adds NCUA 4015-A as an option for amending a federal credit union’s field of
membership when adding groups of potential members between 3,000 and 4,999. The
NCUA 4015-A is a shorter form than the NCUA 4015, but more comprehensive than
the 4015-EZ. Also under Chapter 2, an FCU can apply to NCUA to convert to a
community charter or expand an existing community charter. 1

•

Under Chapter 3, a multiple common bond FCU can apply to NCUA to add an
underserved area to its field of membership.

•

Under Chapter 4 and appendices, there are application procedures and forms related to
conversions from an FCU to a state-chartered credit union, and vice versa. A credit
union can complete the following NCUA forms for such conversions:
4000, Conversion of State Charter to a Federal Charter – Federal Credit Union
Investigation Report
4221, Notice of Meeting of Members to Convert from a Federal to State Chartered
Credit Union
4401, Application to Convert from a State to a Federal Credit Union
4505, Affidavit – Proof of Results of Membership Vote – Proposed Conversion From
Federal Credit Union to State Credit Union
4506, Federal to State Conversion – Ballot for Conversion Proposal
9500, Application and Agreements for Insurance of Accounts
9501, Certification of Resolutions
9600, Information to be Provided in Support of the Application of a State Chartered
Credit Union for Insurance of Accounts

1

NCUA Letter 11-FCU-01; March 2011; Community Charter Conversions and Expansion; Template Business and
Marketing Plan for Community Charter Conversions and Expansions
2

3.

Consideration Given to Information Technology

Forms are available as fillable PDF versions and are available on at
https://www.ncua.gov/services/Pages/field-of-membership-chartering/manual.aspx
NCUA also offers FCUs an electronic alternative to submitting the 4015-EZ by using the “Field
of Membership Internet Application,” known as FOMIA, found at:
https://www.ncua.gov/services/Pages/field-of-membership-chartering/application.aspx.
4.

Duplication

There is no duplication. Each application or other submission of information pursuant to this
collection is completed for a specific particular matter related to a credit union’s chartering or
field of membership issue.
5.

Reducing the Burden on Small Entities

NCUA provides assistance and sample guidelines, forms, and other instructions to interested
persons and entities.
6.

Consequences of Not Conducting Collection

The information collected assists organizations start a new FCU, expand the field of
membership for existing FCUs, and modify their charters. If this information were not
collected, the NCUA would not be able meet the Agency’s mission by providing a safe and
sound credit union system.
7.

Inconsistencies with Guidelines in 5 CFUR 1320.5(d)(2)

None. The collection is done within the Guidelines.
8.

Consultations with Persons Outside the Agency

The final rule published December 7, 2016, at 81 FR 88412, which implements the proposed
modifications. NCUA received approximately 11,380 comments on the proposed rule. The
commenters generally supported the proposed rule by a ratio of approximately 3 to 1, mostly
without reference to a specific proposal and without suggesting alternatives or modifications.
These comments are summarized and addressed in the preamble of the final rule.
The sole commenter who addressed the information collection aspects of the proposed rule
concluded without explanation that it would double the existing paperwork burden. The burden
outlined in the December proposed rule revealed an increase of 26,160 hours due to the new
and revised information collection requirements. With this estimated increase, the total burden
requested under OMB No. 3133-0015 is 40,223 hours.

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9.

Payment or Gifts to Respondents

No payment or gift to respondents will be made.
10.

Assurance of Confidentiality

The content of form NCUA 4012, “Report of Official and Agreement to Serve,” is subject to
the Privacy Act and any confidential information will not be disclosed to the public.
Information in this form is requested for the purpose of completing the investigation required
for a new Federal credit union (FCU) and will be primarily used in considering the soundness
of the management for the proposed FCU. However, this form may be disclosed to any of the
following sources: a congressional office in response to your inquiry to that office; an
appropriate Federal, state or local authority in the investigation or enforcement of a statute or
regulations; or employees of a Federal agency for audit purposes. Failure to complete this form
or omission of any item of information, except for disclosure of your social security number,
may result in a delay in the process of chartering the proposed FCU.
11.

Questions of a Sensitive Nature

Information collected and maintained about officials of newly charter credit unions is in
accordance with the “Personnel Access and Security System (PASS), NCUA-1. A system of
records notice (SORN) has been published for PASS on March 10, 2016, at 81 FR 12748.

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12.

Estimate of Information Collection Burden

Chapter 1. Federal
Credit Union
Chartering

Chapter 2. Field of
Membership
Requirements

Chapter 3. LowIncome Credit
Unions and Credit
Unions Serving
Underserved Areas

Business Plan for New
Charters, Wording for
Proposed Field of
Membership
Single Common Bond and
Multiple Common Bond
Amendments
Community Charter
Conversion and
Expansion Applications
Community Charter
Conversion and
Expansion Applications
with subjective narrative to
support requirement of a
well-defined local
community

Forms

#
Respondents

Frequency

Annual
Responses

Hours Per
Response

Total Burden

4001, 4008, 4012,
9500, 9501

2

1

2

160

320

NCUA Forms
4015, 4015-A and
4015-EZ, FOMIA

8,050

1

8,050

0.45

3,622.5

39

1

39

160

6,240

1,090

1

1,090

24

26,160

21

1

21

160

3,360

13

1

13

40

520

IC 5: Application to Add
an Underserved Area

Chapter 4: Charter Conversions

NCUA Forms
4000, 4221, 4401,
4505, 4506, 9500,
9501, 9600

TOTAL

9,215

9,215

Total cost to respondents is estimate at $2,175,323. This figure was based on an hourly wage
rate of $54.08 (management) from the Bureau of Labor Statistics, Department of Labor
(http://www.bls.gov/oes/current/oes_nat.htm).
13.

Estimate of Total Annualized Start-up and Capital Cost Burden

There are no capital/start-up or ongoing operations/maintenance costs associated with this
information collection.
14.

Estimate of Cost to the Federal government

The information collected will be reviewed by NCUA staff. Therefore, the outside cost to
NCUA is negligible.

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40,222.50

15.

Explanation of Changes in Burden

The adjustments are due to a reduction in the number of FCU and in the amount of time to
complete the Field of Membership Forms, for a reduction 1,335 burden hours. The rule permits
an FCU to assemble subjective evidence of interaction or common interest, and to draft and
submit a narrative summarizing the evidence to support its application to expand; for an
increase of 26,160 burden hours, due to program change. Total burden hours requested 40,223.
16.

Information Collections Planned for Statistical Purposes

The information will not be published.
17.

Display of OMB Expiration Date.

The display of the expiration date of the OMB approval will cause confusion among entities
who maybe seeking a charter or other services under this collection. Non-display of OMB
expiration date is requested.
18.

Exceptions to Certification Statement.

There are no exceptions to the certification statement.

B.

Collections of Information Employing Statistical Methods

The collection does not employ statistical methods.

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