80 FR 52342 - Agency Information Collection Activities: Request for Comments for Reinstatement With Change of a Previously Approved Collection, Banks Conversions and Mergers

NATIONAL CREDIT UNION ADMINISTRATION

Federal Register Volume 80, Issue 167 (August 28, 2015)

The NCUA intends to submit the following information collection to the Office of Management and Budget (OMB) for review and clearance under the Paperwork Reduction Act of 1995 (Pub. L. 104-13, 44 U.S.C. Chapter 35). The purpose of this notice is to allow for 60 days of public comment. The information collection relates to NCUA's regulation on conversions of federally insured credit unions (FICUs) to mutual savings banks (MSBs) and mergers of FICUs into banks. The regulation requires an insured credit union that proposes to convert to an MSB or merge into a bank to provide notice and disclosure of the proposal to members and NCUA and to conduct a membership vote.

[Federal Register Volume 80, Number 167 (Friday, August 28, 2015)]
[Notices]
[Pages 52342-52344]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-21334]


=======================================================================
-----------------------------------------------------------------------

NATIONAL CREDIT UNION ADMINISTRATION


Agency Information Collection Activities: Request for Comments 
for Reinstatement With Change of a Previously Approved Collection, 
Banks Conversions and Mergers

AGENCY: National Credit Union Administration (NCUA).

ACTION: Request for comments.

-----------------------------------------------------------------------

SUMMARY: The NCUA intends to submit the following information 
collection to the Office of Management and Budget (OMB) for review and 
clearance under the Paperwork Reduction Act of 1995 (Pub. L. 104-13, 44 
U.S.C. Chapter 35). The purpose of this notice is to allow for 60 days 
of public comment. The information collection relates to NCUA's 
regulation on conversions of federally insured credit unions (FICUs) to 
mutual savings banks (MSBs) and mergers of FICUs into banks. The 
regulation requires an insured credit union that proposes to convert to 
an MSB or merge into a bank to provide notice and disclosure of the 
proposal to members and NCUA and to conduct a membership vote.

DATES: Comments will be accepted until October 27, 2015.

ADDRESSES: Interested persons are invited to submit written comments to 
the NCUA Contact and the OMB Reviewer listed below:

NCUA Contact: Joy Lee, National Credit Union Administration, 1775 Duke 
Street, Alexandria, Virginia 22314-3428, Fax No. 703-837-2861, Email: 
[email protected].
OMB Reviewer: Office of Management and Budget, ATTN: Desk Officer for 
the National Credit Union Administration, Office of Information and 
Regulatory Affairs, Washington, DC 20503, Email: 
[email protected].

FOR FURTHER INFORMATION CONTACT: Requests for additional information, a 
copy of the information collection request, or a copy of submitted 
comments should be directed to:

NCUA Contact: Joy Lee, National Credit Union Administration, 1775 Duke 
Street, Alexandria, Virginia 22314-

[[Page 52343]]

3428, Fax No. 703-837-2861, Email: [email protected].

SUPPLEMENTARY INFORMATION: 

I. Abstract and Request for Comments

    NCUA is requesting reinstatement, with change, of the previously 
approved collection of information for NCUA's regulation on Bank 
Conversions and Mergers, 12 CFR part 708a (Part 708a), which provides 
the requirements for conversions of FICUs to MSBs and mergers of FICUs 
into banks. Part 708a requires an insured credit union that proposes to 
convert to an MSB or to merge into a bank to provide notice and 
disclosure of the proposal to members and NCUA and to conduct a 
membership vote. These requirements are authorized under section 
205(b)(2) of the Federal Credit Union Act, 12 U.S.C. 1785(b)(2). They 
are also necessary to ensure safety and soundness in the credit union 
industry, and to protect the interests of credit union members in the 
charter conversion and merger contexts. Submission of this information 
is designed to ensure NCUA has sufficient information to administer the 
member vote in an MSB conversion and to approve or disapprove a 
proposed merger into a bank. The information collection allows NCUA to 
ensure compliance with statutory and regulatory requirements for 
conversions and mergers. It also ensures that members of credit unions 
have sufficient and accurate information to exercise an informed vote 
concerning a proposed conversion or merger.
    Subpart A of Part 708a (Subpart A) covers the conversion of insured 
credit unions to MSBs. Subpart A requires insured credit unions that 
intend to convert to MSBs to provide notice and disclosure of their 
intent to convert to their members and NCUA. It also requires insured 
credit unions to provide additional information to NCUA at various 
points in the conversion process.
    Subpart C of Part 708a (Subpart C) covers the merger of insured 
credit unions into banks. Subpart C requires insured credit unions that 
intend to merge into banks (both mutual and stock banks) to determine 
the merger value of the credit union and provide notice and disclosure 
of their intent to merge to their members and NCUA. It also requires 
insured credit unions to provide additional information to NCUA at 
various points in the merger process.
    The categories of burden and burden hours for credit unions 
complying with Part 708a may include the following:
    Conversions to MSBs:
    In the last five years, five credit unions have engaged in MSB 
conversion transactions. NCUA estimates it takes an average of 
approximately 300 hours to comply with the notice and disclosure 
requirements of Subpart A. Of the 300 hours, NCUA estimates that 
respondents will spend approximately 50 hours on recordkeeping, 42 
hours on reporting, and 208 hours on third-party disclosure. Based on 
NCUA's experience, NCUA estimates that in the future one insured credit 
union will engage in an MSB conversion transaction in any given year, 
so that the total annual collection burden is estimated to be 
approximately 300 hours. The credit union is required to:
    a. Publish advance notice of intent to convert (section 
708a.103(a))--3 hours;
    b. Solicit and review member comments on the advance notice 
(sections 708a.103(a) and (b))--4 hours;
    c. Have the directors approve the conversion proposal (section 
708a.103(c))--50 hours;
    d. Notify NCUA of intent to convert (section 708a.105)--40 hours;
    e. Prepare a directors' certification of support for the conversion 
proposal and submit to NCUA (section 708a.105(a)(2))--1 hour;
    f. Prepare and mail notices to members and conduct a membership 
vote on the proposed conversion (sections 708a.104, 708a.106)--200 
hours;
    g. Transmit, upon request, a member's communication to the other 
members (section 708a.104(f))--1 hour; and
    h. Prepare a member vote certification and submit to NCUA (section 
708a.107)--1 hour.
    Mergers into Banks:
    In the last five years, no credit unions have engaged in bank 
merger transactions. If a credit union were to engage in a bank merger 
transaction in the future, NCUA estimates it would take approximately 
410 hours to comply with the merger valuation, notice, and disclosure 
requirements of Subpart C. Of the 410 hours, NCUA estimates that 
respondents will spend approximately 100 hours on recordkeeping, 102 
hours on reporting, and 208 hours on third-party disclosure. NCUA 
estimates that in the future one insured credit union will engage in a 
bank merger transaction in any given year, so that the total annual 
collection burden is estimated to be approximately 410 hours. The 
credit union is required to:
    a. Obtain a merger valuation (section 708a.303(a))--50 hours;
    b. Publish advance notice of intent to merge (section 
708a.303(b))--3 hours;
    c. Solicit and review member comments on the advance notice 
(section 708a.303(c))--4 hours;
    d. Conduct due diligence and have the directors approve the merger 
proposal (sections 708a.303(d), 708a.304(d))--50 hours;
    e. Prepare the Merger Plan and Notice of Intent to Merge and 
Request for NCUA Authorization and submit to NCUA (sections 708a.304(a) 
and (b))--100 hours;
    f. Prepare a directors' certification of support for the merger 
proposal and submit to NCUA (section 708a.304(c))--1 hour;
    g. Prepare and mail notices to members and conduct a membership 
vote on the proposed merger (sections 708a.305, 708a.306)--200 hours;
    h. Transmit, upon request, a member's communication to the other 
members (section 708a.305(g))--1 hour; and
    i. Prepare a member vote certification and submit to NCUA (section 
708a.307)--1 hour.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid OMB control number.
    NCUA requests that you send your comments on this collection for 
part 708a to the location listed in the ADDRESSES section. Your 
comments should address: (a) The necessity of the information 
collection for the proper performance of NCUA, including whether the 
information will have practical utility; (b) the accuracy of our 
estimate of the burden of the information collection, including the 
validity of the methodology and assumptions used; (c) ways we could 
enhance the quality, utility, and clarity of the information to be 
collected; and (d) ways we could minimize the burden of the information 
collection on respondents, such as through the use of automated 
collection techniques or other forms of information technology. It is 
NCUA's policy to make all comments available to the public for review.

II. Data

    Title: Bank Conversions and Mergers, 12 CFR part 708a.
    OMB Number: Previously approved under OMB Number 3133-0182.
    Form Number: None.
    Type of Review: Reinstatement, with change, of a previously 
approved collection.
    Description: Part 708a requires an insured credit union that 
proposes to convert to an MSB or to merge into a bank to provide notice 
and disclosure of the proposal to members and NCUA and

[[Page 52344]]

to conduct a membership vote. Submission of this information is 
designed to ensure NCUA has sufficient information to administer the 
member vote in an MSB conversion and to approve or disapprove a 
proposed merger into a bank. The information collection allows NCUA to 
ensure compliance with statutory and regulatory requirements for 
conversions and mergers. It also ensures that members of credit unions 
have sufficient and accurate information to exercise an informed vote 
concerning a proposed conversion or merger.
    Respondents: Federally insured credit unions.
    Estimated Number of Respondents: 2.
    Estimated Number of Responses: 2.
    Frequency of Response: One-time; on occasion.
    Estimated Time per Response: Ranges from 300 to 410 hours.
    Estimated Total Annual Hour Burden: 710 hours.
    Estimated Total Annual Cost: $28,400.00

    By the National Credit Union Administration Board on August 25, 
2015.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2015-21334 Filed 8-27-15; 8:45 am]
 BILLING CODE 7535-01-P