Form T-6.SS.12-16-2015

SUPPORTING STATEMENT
FOR THE PAPERWORK REDUCTION ACT INFORMATION COLLECTION
SUBMISSION FOR FORM T-6

A.

JUSTIFICATION
1.

Circumstances Making the Collection of Information Necessary

Under the Trust Indenture Act of 1939 (“Act”) a foreign corporation or other person
proposing to serve as trustee under a qualified indenture must state its eligibility and qualification
to serve as trustee on Form T-6 that is filed with the Securities and Exchange Commission
(“Commission”).
As required by Section 310(a)(1) of the Act, the foreign trustee must provide evidence that
it is authorized to exercise corporate trust powers, it is subject to supervision or examination by
authority of the foreign government or a political subdivision thereof substantially equivalent to
supervision or examination applicable to U.S. institutional trustees, and U.S. institutional
investors are eligible to act as sole trustees under indentures in the foreign jurisdiction. In addition,
the form requires the foreign trustee to file a report of condition and a written consent to service of
process.
Additional information required by the form regards possible conflicts of interest, which
would disqualify the trustee from serving. This information relates to affiliations with the issuer or
its underwriters, the amount of voting securities of the trustee, any outstanding trusteeships under
other indentures of the same issuer, interlocking directorates and similar relationships with the
issuer or its underwriters, voting securities of the trustee owned by the issuer or its officials, voting
securities of the trustee owned by underwriters of the issuer, securities of the issuer owned or held
by the trustee, securities of the underwriters owned or held by the trustee, ownership or holdings
by the trustee of voting securities of affiliates of the issuer, and ownership or holdings by the
trustee of any securities of a person owning 50% or more of the voting securities of the issuer.
2.

Purpose and Use of the Information Collection

The information in the Form T-6 provides a basis for deciding that a foreign trustee is
qualified. If the information contained in the Form T-6 were collected, the basis for that decision
would be unavailable.
3.

Consideration Given to Information Technology

Form T-6 must be filed electronically using the Commission’s Electronic Data Gathering,
Analysis, and Retrieval (EDGAR) system.

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4.

Duplication of Information

Form T-6 contains information regarding an applicant’s current relationships with a
particular issuer and other specific entities. This information is not duplicated.
5.

Reducing the Burden on Small Entities

Not applicable.
6.

Consequences of Not Conducting Collection

Form T-6 is filed only once and discloses information essential to determine the
eligibility of foreign trustees under Section 310(a)(1) of the Act. Failure to collect this
information would eliminate a basis for qualification of the indenture.
7.

Special Circumstances

Not applicable.
8.

Consultations with Persons Outside the Agency

Form T-6 was proposed for public comment. No comments were received during the
60-day comment period prior to OMB’s review of this submission.
9.

Payment or Gift to Respondents

Not applicable.
10.

Confidentiality

All documents filed with the Commission are public documents.
11.

Sensitive Questions

No information of a sensitive nature would be required under this collection of information.
The information collection collects basic Personally Identifiable Information (PII) that may include
name, business address, and residential address (for sole proprietor only),
telephone/cellular/facsimile number, email address, and Tax ID Number (TIN). The information
collection is covered under the System of Records Notices (SORN), which may be found at the
following link: http://www.sec.gov/about/privacy/sorn/secsorn6.pdf. The Privacy Impact
Assessment (PIA) is provided as a supplemental document.

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12.

Estimate of Respondent Reporting Burden

For purposes of the Paperwork Reduction Act (“PRA”), we estimate that Form T-6 takes
approximately 17 hours per response to comply with the collection of information requirements
and is filed by approximately 1 respondent. We derived our burden hour estimates by estimating
the average number of hours it would take the trustee to compile the necessary information to
determine eligibility to serve as a trustee for qualified indenture. In connection with rule
amendments to the form, we occasionally receive PRA estimates from public commenters about
incremental burdens that are used in our burden estimates. We further estimate that 25% (4.25
hours) of the collection of information burden is carried by the trustee internally and that 75%
(12.75 hours) of the burden of preparation is carried by outside professionals retained by the trustee
to assist in the preparation of the form. Based on our estimates, we calculated the total reporting
burden to be 4.25 hours (4.25 hours per response x 1 responses). For administrative convenience,
the presentation of the totals related to the paperwork burden hours have been rounded to the
nearest whole number and the cost totals have been rounded to the nearest dollar. The estimated
burden hours are made solely for the purpose of the Paperwork Reduction Act.
13.

Estimate of Total Annualized Cost Burden

We estimate that 75% of the 17 hours per response (12.75 burden hours) is prepared by
the filer’s outside counsel. We estimate that it will cost $400 per hour ($400 x 12.75 hours x 1
response) for a total cost of $5,100. We estimate an hourly cost of $400 for outside legal and
accounting services used in connection with a public company reporting. This estimate is
based on our consultations with registrants and professional firms who regularly assist
registrants in preparing and filing disclosure documents with the Commission. Our estimates
reflect average burdens, and therefore, some companies may experience costs in excess of our
estimates and some companies may experience costs that are lower than our estimates. For
administrative convenience, the presentation of the totals related to the paperwork burden
hours have been rounded to the nearest whole number and the cost totals have been rounded to
the nearest dollar. The cost estimate is made solely for the purpose of the Paperwork
Reduction Act.
14.

Costs to Federal Government

The estimated cost to the government to administer Form T-6 is approximately $3,500 a
year. This estimate is solely for the purpose of the Paperwork Reduction Act and is not derived
from a comprehensive or even a representative survey or study of the cost of Commission rules
and forms.
15.

Reason for Change in Burden

The decrease of -60 annual reporting burden hours and the decrease of ($71,400) in cost
burden are due to an adjustment in the number of Forms T-6 filed with the Commission.

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16.

Information Collection Planned for Statistical Purposes

Not applicable.
17.

Approval to Omit OMB Expiration Date

We request authorization to omit the expiration date on the electronic version of the form.
Including the expiration date on the electronic version of the form will result in increased costs,
because the need to make changes to the form may not follow the application’s scheduled version
release dates. The OMB control number will be displayed.
18.

Exceptions to Certification for Paperwork Reduction Act Submissions

Not applicable.
A.

STATISTICAL METHODS
Not applicable.