FR1583_20190927_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 authority
delegated by the Office of Management and Budget (OMB), has extended for three years, with
revision, the reporting requirements associated with the 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 Board adopted numerous revisions to the FR 1583, which was originally established
by the former Office of Thrift Supervision (OTS) when it supervised SLHCs. Supervisory
functions of the OTS relating to SLHCs were transferred to the Board in 2011.1 As described in
more detail below, the changes have modified the FR 1583 to make it consistent with the format
of other Board forms and to incorporate references to the Board’s regulations.
The estimated total annual burden for the FR 1583 is 67 hours, and the adpoted revisions
result in no change in the net burden. The form and instructions are available on the Board’s
public website at https://www.federalreserve.gov/apps/reportforms/slhc/otsforms.aspx.
Background and Justification
Section 10(f) of the Home Owners’ Loan Act (HOLA) (12 U.S.C. 1467a(f)) and
section 238.103 of the Board’s Regulation LL - Savings and Loan Holding Companies (12 CFR
238.103) provide that every savings association that is a subsidiary of an SLHC is required to file
a notice with the Board at least 30 days before the proposed declaration of a dividend by its
board of directors. The notice requirement helps the Board determine whether a proposed
dividend raises safety or soundness concerns, would result in the savings association being
undercapitalized, or would be inconsistent with any statute, regulation, enforcement action, or
regulatory agreement, formal or informal. This information is not available from other sources.
Description of Information Collection
Savings association subsidiaries of SLHCs must provide prior notice of a dividend by
filing form FR 1583 with the appropriate Reserve Bank. The FR 1583 requires information
regarding the date of the filing and the nature and amount of the proposed dividend, as well as
the names and signatures of the executive officer and secretary of the savings association that is
providing the notice. The FR 1583 notice may include a schedule proposing dividends over a
period specified by the notificant, not to exceed 12 months.
1

Title III of the Dodd-Frank Wall Street Reform and Consumer Protection Act (P.L. 111-203; 12 U.S.C. Subchapter
III) abolished the OTS and transferred the functions of the OTS to several other banking agencies, effective July 21,
2011. In particular, all functions of the OTS relating to supervision of SLHCs (including rulemaking and creation of
relevant forms) were transferred to the Board.

Respondent Panel
The FR 1583 panel comprises savings association subsidiaries of SLHCs.
Adopted Revisions to the FR 1583
The Board adopted several revisions to make the FR 1583 consistent with the format of
other Board forms and to reflect the Board’s regulations. Specifically, the Board adopted the
following revisions:
1. Adding an item requiring the filer to identify the “Nature of the Dividend.” Board
regulations permit a dividend to consist of the distribution of cash or other property, or
any transaction that is substantively a dividend, as provided by the Board (12 CFR
238.102(d)). The Reserve Bank must know the nature of the dividend to review the notice
for consistency with the Board’s regulations.
2. Adding an item requesting date of filing. This information is customarily requested in
Board reporting forms so that the timing of filings can be tracked.
3. Deleting an item asking the filer to select whether the institution qualifies or does not
qualify for expedited treatment. The Board’s regulations do not provide for expedited
treatment of notices of proposed declarations of dividends.
4. Deleting an item asking the filer to select whether the submission is a notice or
application. The Board’s regulations provide that a filer provide notice, rather than an
application, to the appropriate Reserve Bank (12 CFR 238.103).
5. Deleting an item allowing institutions to attach additional information required pursuant
to the OTS’s regulations (12 CFR 563.143). The Board does not have analogous
regulations.
6. Adding the option to submit the FR 1583 electronically by Portable Document Format.
Use of electronic submissions will reduce burden on both the filer and the Board.
7. Adding two items for the printed name of the firm Executive Officer and Secretary who
sign the FR 1583. This change will help Federal Reserve identify the individuals
associated with the filing.
Time Schedule for Information Collection
The information required by the FR 1583 collection is event-generated (before a
proposed declaration of a dividend by a savings association subsidiary of an SLHC).
Legal Status
The FR 1583 is authorized by section 10(f) of HOLA (12 U.S.C. § 1467a(f)). Section
10(f) of HOLA 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 Board also has the authority to require reports from savings and loan holding
companies under section 10(a) and (b) of HOLA (12 U.S.C. §§ 1467a(b) and (g)). The FR 1583
is mandatory.

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Individual respondents may request that information submitted on the FR 1583 be kept
confidential on a case-by-case basis. If a respondent requests confidential treatment, the Board
will determine whether the information is entitled to confidential treatment on an ad hoc basis.
Requests filed pursuant to the FR 1583 may include information related to the SLHC’s business
operations, such as terms and sources of the funding for dividends and pro forma balance sheets.
This information may be kept confidential under exemption 4 for the Freedom of Information
Act, which protects privileged or confidential commercial or financial information (5 U.S.C. §
552(b)(4)).
Consultation Outside the Agency
There has been no collaboration outside the Federal Reserve System.
Public Comments
On June 17, 2019, the Board published an initial notice in the Federal Register
(84 FR 28049) requesting public comment for 60 days on the extension, with revision, of the
FR 1583. The comment period for this notice expired on August 16, 2019. The Board did not
receive any comments. On September 26, 2019, the Board published a final notice in the Federal
Register (84 FR 50839).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR 1583 is 67
hours, and would stay the same with the adopted revisions. These reporting requirements
represent less than 1 percent of the Board’s total paperwork burden.

FR 1583
Notice of Proposed
Declaration of Dividend

Estimated
number of
respondents2

Annual
frequency3

Estimated
average hours
per response

Estimated
annual burden
hours

122

2

0.275

67

The estimated total annual cost to the public for this information collection is $3,859.4

2

Of these respondents, 68 are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $550 million in total assets), https://www.sba.gov/document/support--table-size-standards.
There are no special accommodations provided to mitigate the burden on small entities.
3
This estimate is based on the average number of FR 1583 forms received annually, per respondent, for calendar
years 2016 through 2018.
4
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 $19, 45% Financial Managers at
$71, 15% Lawyers at $69, and 10% Chief Executives at $96). 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 2018, published March 29, 2019, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined
using the BLS Standard Occupational Classification System, https://www.bls.gov/soc/.

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.

4