1557-0204 1-24-18

Office of the Comptroller of the Currency

Supporting Statement

Bank Activities and Operations; Investment in Bank Premises

OMB Control No. 1557-0204

A. Justification.

1. Circumstances that make the collection necessary:

Institutions need these collections of information to ensure that they conduct their operations in a safe and sound manner and in accordance with applicable federal banking law and regulations. The collections of information provide needed information for examiners and offer protections for institutions. The collections are necessary for regulatory and examination purposes and for national banks to ensure their compliance with federal law and regulations.

2. Use of the information:

Institutions use the information to ensure compliance with applicable federal banking law and regulations. Further, the collections of information evidence bank compliance with various regulatory requirements. The information assists institution management in the safe and sound operation of an institution. The OCC uses the information in the conduct of bank examinations and as an audit tool to verify bank compliance with law and regulations.

3. Consideration of the use of information technology:

The information requirements are recordkeeping requirements. Institutions may use any information technology that permits retrieval for review by OCC examiners.

4. Efforts to identify duplication:

This information collection is unique to the institution. It is not duplicated anywhere else.

5. If the collection of information impacts small businesses or other small entities, describe any methods used to minimize burden.

There are no alternatives that would result in lowering the burden on small institutions, while still accomplishing the purposes of the rules.

6. Consequences to the federal program if the collection were conducted less frequently:

The information is collected infrequently, as covered situations arise. Less frequent collection could impair OCC’s supervisory activities, limit the utility of the information to institution management, and result in unsafe and unsound operations.

7. Special circumstances necessitating collection inconsistent with 5 CFR part 1320:

This information collection is conducted in accordance with OMB guidelines in 5 CFR part 1320.

8. Efforts to consult with persons outside the agency:

The OCC issued a notice for 60 days of comment regarding this collection on November 21, 2017, 82 FR 55486. No comments were received.

9. Payment to respondents:

None.

10. Any assurance of confidentiality:

None.

11. Justification for questions of a sensitive nature:

Not applicable. No personally identifiable information is collected.

12. Burden estimate:

Cite and Burden Type	Information Collection Requirement	Number of Respondents	Average Hours Per Response	Estimated Burden Hours
12 CFR 5.37	Investment in national bank or federal savings association premises – A national bank or federal savings association may invest in banking premises and other premises-related investments, loans, or indebtedness by filing an application for prior approval whenever its investment in bank premises will cause it to exceed its capital stock.  The application must describe the present and proposed investment and the business reason for exceeding the limit. A bank with a composite 1 or 2 CAMELS rating entering a transaction that increases its aggregate bank premises investment to not more than 150 percent of its capital and surplus may proceed without prior OCC approval, but must provide an after-the-fact notice.	150	1.30	195 hours
12 CFR 7.1014 Recordkeeping	Sale of money orders at nonbanking outlets – A national bank may designate bonded agents to sell the bank’s money orders at nonbanking outlets. The responsibility of both the bank and its agent should be defined in a written agreement setting forth the duties of both parties and providing for remuneration of the agent.	15	1 hr.	15 hours
12 CFR 7.2000(b) Recordkeeping	Corporate governance procedures – Other sources of guidance – A national bank shall designate in its bylaws the body of law selected for its corporate governance procedures.	35	0.25 hr.	8.75 hours
12 CFR 7.2004 Recordkeeping	Honorary directors or advisory boards – Any listing of a national bank’s honorary or advisory directors must distinguish between those directors and the bank’s board of directors or indicate their advisory status.	1,294	0.25 hr.	323.5 hours
12 CFR 7.2014(b) Recordkeeping	Indemnification of institution-affiliated parties – Administrative proceeding or civil actions not initiated by a federal banking agency – General – A national bank shall designate in its bylaws the body of law selected for making indemnification payments under this paragraph.	35	0.25 hr.	8.75 hours
12 CFR 7.2024(a) Reporting	Staggered terms for national bank directors – Any national bank may adopt bylaws that provide for staggering the terms of its directors. National banks shall provide the OCC with copies of any bylaws so amended.	10	0.5 hr.	5 hours
12 CFR 7.2024(c) Reporting	Size of bank board – A national bank seeking to increase the number of its directors must notify the OCC any time the proposed size would exceed 25 directors.	10	0.5 hr.	5 hours
Totals		1,294		561 hours

Cost of Hour Burden to Respondents:

561 x 114 = $ 63,954

To estimate average hourly wages we reviewed May 2016 data (released in March 2017) for wages (by industry and occupation) from the U.S. Bureau of Labor Statistics (BLS) for depository credit intermediation (NAICS 522100). To estimate compensation costs associated with the rule, we use $114 per hour, which is based on the average of the 90th percentile for seven occupations adjusted for inflation (2 percent), plus an additional 30 percent to cover private sector benefits. Thirty percent represents the average private sector costs of employee benefits.

13. Estimates of annualized costs to respondents:

Not applicable.

14. Estimates of annualized cost to the Federal Government:

Not applicable.

15. Changes in burden:

Prior Burden: 613 Hours.

Current Burden: 561 Hours.

Difference: -52 Hours.

The decrease in burden is due to the decrease in the number of regulated entities.

16. Information regarding collections whose results are planned to be published for statistical use:

Not applicable.

17. Display of expiration date:

Not applicable.

18. Exceptions to certification statement:

Not applicable.

B. Collections of Information Employing Statistical Methods.

Not applicable.

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