Borrowed Funds from Natural Persons, 12 CFR 701.38

Forms and Documents

Document Name	Status
12 CFR 701.38 (up to date as of 6-06-2022).pdf Supplementary Document	2022-08-24
FINAL_3133-0039_SS_082422.docx Supporting Statement A	2022-08-31

IC Document Collections

IC ID	Document Title	Status
154546	Evidence of Written Contract	Modified

ICR Details

OMB Control No: 3133-0039	ICR Reference No: 202208-3133-002
Status: Received in OIRA	Previous ICR Reference No: 201901-3133-002
Agency/Subagency: NCUA	Agency Tracking No: E&I
Title: Borrowed Funds from Natural Persons, 12 CFR 701.38
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 08/31/2022

	Requested	Previously Approved
Expiration Date	36 Months From Approved	08/31/2022
Responses	187	187
Time Burden (Hours)	31	31
Cost Burden (Dollars)	0	0

---

Abstract: Section 701.38 of the NCUA regulations grants federal credit unions the authority to borrow funds from a natural person as long as they maintain evidence of a written contract that sets forth the terms and conditions of maturity, repayment, interest rate, method of computation and method of payment; and the written contract and any solicitation with respect to such borrowing contains clear and conspicuous language indicating that the funds represent money borrowed by the credit union and does not represent shares and, therefore, are not insured by the National Credit Union Insurance Fund (NCUSIF). NCUA will use this information to ensure a credit union’s natural person borrowings are in compliance and address all regulatory and safety and soundness requirements.

---

Authorizing Statute(s): US Code: 12 USC 1751 et al. Name of Law: Federal Credit Union Act
  

Citations for New Statutory Requirements: None

---

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

---

Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 39131	06/30/2022
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 53022	08/30/2022
Did the Agency receive public comments on this ICR? No

---

Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Evidence of Written Contract

---

ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	187	187	0	0	0	0
Annual Time Burden (Hours)	31	31	0	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement:

---

Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

---

Common Form ICR:  No

---

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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 08/31/2022

---