AMEND2014FINAL0152Supporting Statement for PRA Submission2013

Supporting Statement for Paperwork Reduction Act Submission

3133-0152

Management Official Interlocks, 12 CFR Part 711

2013

A. Justification

1. Circumstances that make the collection necessary:

NCUA is reinstating the collection for 3133-0152. NCUA requires this information collection to ensure federally insured credit unions comply with NCUA’s Management Official Interlocks regulation at 12 CFR part 711, implementing the Depository Institution Management Interlocks Act (“Interlocks Act”) (12 U.S.C. 3201-3208).

The Interlocks Act generally prohibits financial institution management officials from serving simultaneously with two unaffiliated depository institutions or their holding companies. For credit unions, the Interlocks Act restricts interlocks only between credit unions and other types of financial institutions, such as banks and their holding companies. 12 U.S.C. 3204(3).

The information collections associated with part 711 are as follows:

• under §711.4(h)(1)(i), a credit union must notify NCUA to obtain approval to have a director in common with a diversified savings and loan holding company;

• under §711.3, a credit union may have to maintain records to determine whether the major assets prohibition applies;

• under §711.5, a credit union may have to maintain records to comply with the small market share exemption; and

• under §711.6(a), a credit union seeking a general exemption to a management official interlocks prohibition in §711.3 would have to compile information and apply to NCUA for approval.

2. Use of the information:

Federally insured credit unions will use any information they compile and maintain to comply with this regulation to evaluate their market share and that of any other financial institutions with which they want to share a management official. Credit unions may also use information they compile and maintain to analyze their asset level or to support requests to NCUA for approval or applications to NCUA for a general exemption.

3. Consideration of the use of improved information technology:

Not applicable.

4. Efforts to identify duplication:

No duplication is evident. Collection of this information is required only under the Management Official Interlocks rule.

5. Methods used to minimize the burden if the collection has a significant impact on a substantial number of small entities:

None. The burden is minimal. Very few, if any, small credit unions will engage in conduct governed by this rule.

6. Consequences to the federal program if the collection were conducted less frequently:

Not applicable. The information collection is not part of an agency program or policy.

7. Special circumstances necessitating collection inconsistent with 5 CFR Part 1320:

There are no special circumstances.

8. Request for comments on the information collection:

Notice of the proposed information collection and a request for public comment was published with a 60-day comment period in the Federal Register on August 22, 2013 (78 FR 52217). NCUA did not receive any comments regarding the collection.

9. Payment to respondents:

There are no payments or gifts to the respondents.

10. Any assurances of confidentiality:

There are no assurances of confidentiality.

11. Justification for questions of a sensitive nature:

There are no questions of a sensitive nature.

12. Burden estimate:

NCUA estimates that approximately 2 credit unions per year apply for approval or engage in the activity, and that it will take an average of 3 hours to collect and analyze the information. Thus, the total annual collection burden estimated is six hours.

13. Estimate of annualized costs to respondent:

The estimated cost to federal credit unions is minimal.

14. Estimate of annualized costs to the government:

There are no costs to the government.

15. Change in burden:

This is a reinstatement of a previously approved collection.

16. Collection of information whose results will be published:

There are no plans to publish results.

17. Display of expiration date:

Not applicable. The information collection requirement is found in the regulation.

18. Exceptions to certification statement:

There are no exceptions to the certification statement.

B. Collection of Information Employing Statistical Methods.

This collection does not employ statistical methods.