FR1583_20220928_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,
without revision, the Notice of Proposed Declaration of Dividend (FR 1583; OMB No.
7100-0339). The FR 1583 is used to collect information on the proposed declaration of any
dividend by a subsidiary savings association of a savings and loan holding company (SLHC).
The estimated total annual burden for the FR 1583 is 90 hours. The form and instructions
are available on the Board’s public website at
https://www.federalreserve.gov/apps/reportingforms.
Background and Justification
Section 10(f) of the Home Owners’ Loan Act (HOLA) (12 U.S.C. § 1467a(f)) requires a
subsidiary savings association of an SLHC to provide prior notice to the Federal Reserve before
declaring a dividend. Section 238.103 of the Board’s Regulation LL - Savings and Loan Holding
Companies (12 CFR 238.103) further specifies that every savings association that is a subsidiary
of an SLHC is required to file a notice with the appropriate Reserve Bank at least 30 days before
the proposed declaration of a dividend by its board of directors. This requirement allows the
Board an opportunity to determine whether to disapprove a notice, taking into account whether
the 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. Section 10(f) of HOLA provides
that any dividend by a savings association subsidiary of an SLHC that is declared without
providing this prior notice to the Board is invalid and confers no rights or benefits upon the
holder of any such stock.
Description of Information Collection
A savings association subsidiary of an SLHC must provide prior notice of the proposed
declaration of a dividend by filing form FR 1583, whether electronically or by hard copy, 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.

Respondent Panel
The FR 1583 panel comprises any savings association that is a subsidiary of an SLHC,
including an SLHC that is a mutual holding company.
Time Schedule for Information Collection
This information collection is event-generated. Any savings association that is a
subsidiary of an SLHC 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.
Public Availability of Data
The submitted FR 1583 forms are generally available to the public upon request. A
savings association may request confidential treatment of any portion of the FR 1583, as detailed
in the Legal Status section below.
Legal Status
The FR 1583 is authorized by section 10(f) of the 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
dividend on its guaranty, permanent, or other nonwithdrawable stock. Additionally, section 10(b)
of HOLA authorizes the Board to require SLHCs to file “such reports as may be required by the
Board” (12 U.S.C. § 1467a(b)). The FR 1583 is mandatory.
Individual respondents may request confidential treatment for information submitted on
the FR 1583 in accordance with the Board’s Rules Regarding Availability of Information,1 and
such requests will be reviewed on a case-by-case basis. Information submitted on the FR 1583
may be related to the SLHC’s business operations, such as terms and sources of the funding for
dividends and pro forma balance sheets. To the extent that this information constitutes nonpublic
commercial or financial information, which is both customarily and actually treated as private by
the respondent, it may be kept confidential under exemption 4 of the Freedom of Information Act
(5 U.S.C. § 552(b)(4)).
Consultation Outside the Agency
There has been no consultation outside the Federal Reserve system.
Public Comments
On January 28, 2022, the Board published an initial notice in the Federal Register (87 FR
4595) requesting public comment for 60 days on the extension, without revision, of the FR 1583.
The comment period for this notice expired on March 29, 2022. The Board did not receive any
comments. The Board adopted the extension, without revision, of the FR 1583 as originally
1

12 CFR 261.17.

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proposed. On May 24, 2022, the Board published a final notice in the Federal Register (87 FR
31557).
Estimate of Respondent Burden
As shown in the table below, the estimated total annual burden for the FR 1583 is 90
hours. The estimated number of respondents and annual frequency is based on the average
number of FR 1583 forms received annually, and the number of respondents, for calendar years
2018 through 2020. These reporting requirements represent less than 1 percent of the Board’s
total paperwork burden.

FR 1583
Current

Estimated
Estimated
Estimated
Annual
number of
average hours annual burden
frequency
respondents2
per response
hours
180
2
0.25
90

The estimated total annual cost to the public for the FR 1583 is $5,441.3
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 this
report is negligible.

2

Of these respondents, 130 are considered small entities as defined by the Small Business Administration (i.e.,
entities with less than $750 million in total assets), https://www.sba.gov/document/support-table-size-standards.
There are no special accommodations given to mitigate the burden on small institutions.
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 $21, 45% Financial Managers at
$74, 15% Lawyers at $71, and 10% Chief Executives at $102). Hourly rates for each occupational group are the
(rounded) mean hourly wages from the Bureau of Labor Statistics (BLS), Occupational Employment and Wages,
May 2021, published March 31, 2022, https://www.bls.gov/news.release/ocwage.t01.htm. Occupations are defined
using the BLS Standard Occupational Classification System, https://www.bls.gov/soc/.

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