82 FR 8438 - Agency Information Collection Activities: Proposed Collection; Comment Request; Leasing

NATIONAL CREDIT UNION ADMINISTRATION

Federal Register Volume 82, Issue 15 (January 25, 2017)

The National Credit Union Administration (NCUA), as part of a continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to comment on the following extension request of currently approved collection, as required by the Paperwork Reduction Act of 1995.

[Federal Register Volume 82, Number 15 (Wednesday, January 25, 2017)]
[Notices]
[Pages 8438-8439]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-01646]


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NATIONAL CREDIT UNION ADMINISTRATION


Agency Information Collection Activities: Proposed Collection; 
Comment Request; Leasing

AGENCY: National Credit Union Administration (NCUA).

ACTION: Notice and request for comment.

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SUMMARY: The National Credit Union Administration (NCUA), as part of a 
continuing effort to reduce paperwork and respondent burden, invites 
the general public and other Federal agencies to comment on the 
following extension request of currently approved collection, as 
required by the Paperwork Reduction Act of 1995.

DATES: Written comments should be received on or before March 27, 2017 
to be assured consideration.

ADDRESSES: Interested persons are invited to submit written comments on 
the information collections to Dawn Wolfgang, National Credit Union 
Administration, 1775 Duke Street, Suite 5067, Alexandria, Virginia 
22314; Fax No. 703-519-8579; or Email at [email protected].

FOR FURTHER INFORMATION CONTACT: Requests for additional information 
should be directed to the address above.

SUPPLEMENTARY INFORMATION: 
    OMB Number: 3133-0151.
    Title: Leasing, 12 CFR part 714.
    Abstract: Section 714.5 of NCUA's Regulations requires a federal 
credit

[[Page 8439]]

union engaged in leasing to obtain or have on file financial 
documentation demonstrating that the guarantor of an estimated residual 
value has the resources to meet the guarantee.
    Estimated residual value is the projected future value of leased 
property at lease end. The accuracy of the estimated residual values 
used in a lease program is a fundamental element in the success or 
failure of a lease program. The higher the estimated residual values 
used by a federal credit union, the greater the potential for loss. To 
mitigate this risk, the leasing rule requires that if the amount of the 
estimated residual value relied on by the federal credit union to 
satisfy the full payout lease requirement exceeds 25 percent of the 
original cost of the leased property, the credit union must obtain a 
guarantee of the excess from a financially capable party.
    If the guarantor cannot meet its guarantee, a federal credit union 
may suffer serious financial loss. Accordingly, it is important that a 
federal credit union documents that a guarantor has the financial 
resources and capability to meet the guarantee. If the guarantor is an 
insurance company, the federal credit union may satisfy this record 
keeping requirement by obtaining and maintaining information 
demonstrating that the insurance company has a rating equivalent to a 
B+ or better from a major rating company.
    Type of Review: Extension of a previously approved collection.
    Affected Public: Private Sector: Not-for-profit institutions.
    Estimated No. of Respondents: 68.
    Estimated Annual Frequency: 5.
    Estimated Annual No. of Responses: 340.
    Estimated Burden Hours per Respondent: 2.
    Estimated Total Annual Burden Hours: 680.
    An adjustment is due to the increase in the number of credit unions 
that offer leasing products, resulting in an increase in burden.

REQUEST FOR COMMENTS:  Comments submitted in response to this notice 
will be summarized and included in the request for Office of Management 
and Budget approval. All comments will become a matter of public 
record. The public is invited to submit comments concerning: (a) 
Whether the collection of information is necessary for the proper 
execution of the function of the agency, including whether the 
information will have practical utility; (b) the accuracy of the 
agency's estimate of the burden of the collection of information, 
including the validity of the methodology and assumptions used; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; and (d) ways to minimize the burden of the collection of 
the information on the respondents, including the use of automated 
collection techniques or other forms of information technology.

    By Gerard Poliquin, Secretary of the Board, the National Credit 
Union Administration, on January 19, 2017.
Dawn D. Wolfgang,
NCUA PRA Clearance Officer.
[FR Doc. 2017-01646 Filed 1-24-17; 8:45 am]
 BILLING CODE 7535-01-P