30-Day Federal Register Notice

FR2-0022 Application for Municipal Securities Principal 86 FR 22431 April 28 2021.pdf

Uniform Application/Uniform Termination for Municipal Securities Principal or Representative

30-Day Federal Register Notice

OMB: 3064-0022

⚠️ Notice: This form may be outdated. More recent filings and information on OMB 3064-0022 can be found here:

2024-04-24 - Extension without change of a currently approved collection

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22431

Federal Register / Vol. 86, No. 80 / Wednesday, April 28, 2021 / Notices
the FCC Live web page at www.fcc.gov/
live.
Marlene Dortch,
Secretary.
[FR Doc. 2021–08799 Filed 4–27–21; 8:45 am]
BILLING CODE 6712–01–P

FEDERAL DEPOSIT INSURANCE
CORPORATION
Agency Information Collection
Activities: Proposed Collection
Renewal; Comment Request (OMB No.
3064–0022; –0027; –0103; –0114;
–0115; –0163; –0208)
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Agency information collection
activities: submission for OMB review;
comment request.
AGENCY:

The FDIC, as part of its
obligations under the Paperwork
Reduction Act of 1995, invites the
general public and other Federal
agencies to take this opportunity to

SUMMARY:

comment on the request to renew the
existing information collections
described below (OMB Control No.
3064–0022; –0027; –0103; –0114; –0115;
–0163).
DATES: Comments must be submitted on
or before May 28, 2021.
ADDRESSES: Interested parties are
invited to submit written comments to
the FDIC by any of the following
methods:
• Agency Website: https://
www.FDIC.gov/regulations/laws/federal.
• Email: comments@fdic.gov. Include
the name and number of the collection
in the subject line of the message.
• Mail: Manny Cabeza (202–898–
3767), Regulatory Counsel, MB–3128,
Federal Deposit Insurance Corporation,
550 17th Street NW, Washington, DC
20429.
• Hand Delivery: Comments may be
hand-delivered to the guard station at
the rear of the 17th Street NW building
(located on F Street), on business days
between 7:00 a.m. and 5:00 p.m.
Written comments and
recommendations for the proposed

information collection should be sent
within 30 days of publication of this
notice to www.reginfo.gov/public/do/
PRAMain . Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function.
FOR FURTHER INFORMATION CONTACT:
Manny Cabeza, Regulatory Counsel,
202–898–3767, mcabeza@fdic.gov, MB–
3128, Federal Deposit Insurance
Corporation, 550 17th Street NW,
Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
Proposal to renew the following
currently approved collections of
information:
1. Title: Uniform Application/
Uniform Termination for Municipal
Securities Principal or Representative.
OMB Number: 3064–0022.
Form Number: 6200/54; 6200/55.
Affected Public: Individuals and
Insured state nonmember banks and
state savings associations.
Burden Estimate:

SUMMARY OF ANNUAL BURDEN AND INTERNAL COST
[OMB No. 3064–0022]
Estimated
number of
responses per
respondent

Estimated
number of
respondents

Source and burden

Estimated
number of
responses

Estimated time
per response
(hours)

Estimated
annual burden
(hours)

Uniform Termination Notice for Securities Principal or
Representative (Form MSD–5) ........................................
Uniform Application for Municipal Securities Principal or
Representative (Form MSD–4) ........................................

0.5

1.0

0.5

1.0

Total Reporting .............................................................

........................

2.0

Total Burden Hours ......................................................

........................

2.0

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Source: FDIC.

General Description of Collection: The
1975 Amendments to the Securities
Exchange Act of 1934 established a
comprehensive framework for the
regulation of the activities of municipal
securities dealers. Under Section 15B(a)
of the Securities Exchange Act,
municipal securities dealers which are
banks, or separately identifiable
departments or divisions of banks
engaging in municipal securities
activities, are required to be registered
with the Securities and Exchange
Commission in accordance with such
rules as the Municipal Securities
Rulemaking Board (MSRB), a
rulemaking authority established by the
1975 Amendments, may prescribe as
necessary or appropriate in the public
interest or for the protection of
investors. One of the areas in which the

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Act directed the MSRB to promulgate
rules is the qualifications of persons
associated with municipal securities
dealers as municipal securities
principals and municipal securities
representatives. The MSRB Rules
require persons who are or seek to be
associated with municipal securities
dealers as municipal securities
principals or municipal securities
representatives to provide certain
background information and conversely,
require the municipal securities dealers
to obtain the information from such
persons. Generally, the information
required to be furnished relates to
employment history and professional
background including any disciplinary
sanctions and any claimed bases for
exemption from MSRB examination
requirements. The FDIC and the other

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two Federal bank regulatory agencies,
the Comptroller of the Currency, and the
Federal Reserve Board, have prescribed
Forms MSD–4 to satisfy these
requirements and have prescribed Form
MSD–5 for notification by a bank
municipal securities dealer that a
municipal securities principal’s or a
municipal securities representative’s
association with the dealer has
terminated and the reason for such
termination. State nonmember banks
and state savings associations that are
municipal security dealers submit these
forms, as applicable, to the FDIC as their
appropriate regulatory agency for each
person associated with the dealer as a
municipal securities principal or
municipal securities representative.
There is no change in the methodology
or substance of this information

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collection. The decrease in burden
hours is a result of the decrease in the
number of respondents.

2. Title: Request for Deregistration for
Registered Transfer Agents.
OMB Number: 3064–0027.
Form Number: 6342/12.

Affected Public: Insured state
nonmember banks and state savings
associations.
Burden Estimate:

SUMMARY OF ANNUAL BURDEN

Request for Deregistration for Registered Transfer Agents.
Total Estimated Annual Burden .......

Estimated
number of
respondents

Estimated
frequency of
responses

Estimated time
per response
(hours)

Estimated
annual
burden

Type of
burden

Obligation to
respond

Reporting .......

Mandatory ......

On Occasion ..

0.42

........................

0.42.

Information collection description

General Description of Collection:
Under the Securities Exchange Act of
1934 (15 U.S.C. 78q–1), an insured
nonmember bank (or a subsidiary of
such a bank) that functions as a transfer
agent may withdraw from registration as
a transfer agent by filing a written notice
of withdrawal with the FDIC. The FDIC

OMB Number: 3064–0103.
Form Number: None.
Affected Public: Insured State
Nonmember Banks and State Savings
Associations.
Burden Estimate:

requires such banks to file FDIC Form
6342/12 as the written notice of
withdrawal. There is no change in the
methodology or substance of this
information collection.
3. Title: Recordkeeping Requirements
Associated with Real Estate Appraisals
and Evaluations.

TABLE 1—SUMMARY OF ESTIMATED ANNUAL BURDENS
[OMB No. 3064–0103]
Type of
burden
(obligation
to respond)

IC description

Recordkeeping Requirements Associated with Real Estate Appraisals and
Evaluations.
Total Annual Burden Hours .............

Frequency
of response

Number of
responses/
respondent

Number of
respondents

Hours per
response

Annual burden
(hours)

Recordkeeping
(Mandatory).

On occasion ...

3,227

227 .................

0.083

60,800

........................

60,800

Source: FDIC.

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Methodology and Assumptions:
Estimated Number of Respondents—
Potential respondents to this
information collection (IC) include all
FDIC-supervised institutions. As of
December 31, 2020 there were 3,227
FDIC-supervised institutions, of which
2,380 are considered ‘‘small’’ for the
purposes of the Regulatory Flexibility
Act (RFA).1 FDIC therefore uses 3,227 as
the estimate of the annual number of
respondents to this IC.
Estimated Number of Responses per
Respondent—The estimated number of
1 FDIC Call Report data, December 2020. The
Small Business Administration (SBA) defines a
small banking organization as having $600 million
or less in assets, where an organization’s ‘‘assets are
determined by averaging the assets reported on its
four quarterly financial statements for the preceding
year.’’ See 13 CFR 121.201 (as amended by 84 FR
34261, effective August 19, 2019). In its
determination, the ‘‘SBA counts the receipts,
employees, or other measure of size of the concern
whose size is at issue and all of its domestic and
foreign affiliates.’’ See 13 CFR 121.103. Following
these regulations, the FDIC uses a covered entity’s
affiliated and acquired assets, averaged over the
preceding four quarters, to determine whether the
covered entity is ‘‘small’’ for the purposes of the
RFA.

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responses per respondent for this ICR is
estimated using the dollar volume, and
where available, loan counts of real
estate loans held by FDIC-supervised
institutions. For each institution,
information is gathered from the Call
Report on the reported dollar value of
1–4 family residential construction
loans, other construction and
development loans, loans secured by
farmland, open-end loans secured by 1–
4 family residential properties, closedend loans secured by 1–4 family
residential properties, loans secured by
multifamily (5 or more) residential
properties, loans secured by owneroccupied nonfarm nonresidential
properties, and loans secured by other
nonfarm nonresidential properties. This
data is gathered from Call Report
Schedule RC–C as of December 31 of
each year, or in the case of the most
recent 12-month period, the most recent
period available.
To convert the reported dollar volume
of real estate related loans held by FDICsupervised institutions into loan counts,
a more appropriate denomination for

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estimating appraisal and evaluation
activity, the methodology applies
estimated or derived information on
average loan size for each category of
real estate loans. The methodology
divides the reported dollar value of 1–
4 family residential construction loans,
and closed-end loans secured by 1–4
family residential properties, by the U.S.
Census Bureau’s estimate of the average
sales price of new homes in order to
derive an estimate of the number of
loans for these loan categories.2 The
methodology assumes that the average
loan size of open-end loans secured by
1–4 family residential properties is 20
percent of the U.S. Census Bureau’s
estimate of the average sales price of
new homes. The methodology uses this
assumption for the average loan size of
open-end loans secured by 1–4 family
residential properties based on
supervisory experience because the
FDIC does not currently have access to
2 See U.S. Census Bureau, ‘‘Median and Average
Sale Price of Houses Sold.’’ Available at https://
www.census.gov/construction/nrs/historical_data/
index.html.

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Federal Register / Vol. 86, No. 80 / Wednesday, April 28, 2021 / Notices
information that would enable a more
empirical estimate. The methodology
divides the reported dollar value of
open-end loans secured by 1–4 family
residential properties by 20 percent of
the U.S. Census Bureau’s estimate of the
average sales price of new homes in
order to derive an estimate of the
number of loans for this loan category.
The methodology divides the reported
dollar value of other construction and
land development loans, and loans
secured by multifamily (5 or more)
residential properties, by the assumed
average loan size of $1 million in order
to derive an estimate of the number of
loans for these loan categories. The
methodology uses an assumption of $1
million for the average loan size based
on supervisory experience because the
FDIC does not currently have access to
information that would enable a more
empirical estimate. Finally, a statistical
method is used to derive an estimate of
the average loan size for loans secured
by farmland and loans secured by
owner-occupied and non-owneroccupied nonfarm nonresidential
properties. Call Report Schedule RC–C
Part II contains information on the
dollar volume and number of loans of
these loan types for loans above and
below specific dollar-value thresholds
($100,000 and less, $100,000 to
$250,000, and $250,000 to $1 million for
loans secured by nonfarm
nonresidential properties, and $100,000
and less, $100,000 to $250,000, and
$250,000 to $500,000 for loans secured
by farmland). Assuming that the dollar
value of loans secured by farmland and
nonfarm nonresidential properties held
by FDIC-supervised institutions are
normally distributed, the methodology
derives an estimate of the average loan
amount for each of these loan types as
of December 31 of each year, or the most
recent reporting period in the case of the
most recent 12-month period. For
example, as of December 31, 2020 this
methodology produces an estimate of
$585,459 as the average loan size for
loans secured by farmland, and
$975,836 as the average loan size for
loans secured by nonfarm
nonresidential properties. The
methodology divides the reported dollar
value of loans secured by farmland and
loans secured by owner-occupied and
non-owner-occupied nonfarm
nonresidential properties by the derived
estimate of average loan size for loans
secured by farmland and nonfarm
nonresidential properties in order to
derive an estimate of the number of
loans for these loan categories.
The methodology estimates the
number of new loans for each FDIC-

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supervised institution by assuming that
any positive change in the preceding 12month period in the reported dollar
value of a real estate related loan type
represents new lending activity. The
change in the 12-month dollar value of
loans held of each real estate loan type
for each FDIC-supervised institution, if
positive, is divided by the estimated
average loan size for that loan type in
order to produce an estimate of the
number of new loans issued by each
FDIC-supervised institution. However, if
the 12-month change in the reported
dollar value of a loan type is zero or
negative, the methodology assumes that
the number of new loans is zero.
The methodology estimates
refinancing activity by assuming that a
fixed percentage of the estimated count
of existing real estate loans of each loan
type is representative of those loans in
the portfolio that were refinanced in the
preceding 12-month period. For each
institution, and each real estate-related
loan type, the methodology subtracts the
dollar volume of new loans from the
reported dollar volume of loans as of
each 12-month period end-date, divides
that figure by the applicable estimate of
average loan size, and multiplies that
figure by 15 percent to derive an
estimate of the number of existing loans
that were refinanced in the preceding
12-month period. The 15 percent
estimate is based on supervisory
experience since the FDIC does not
currently have access to information
that would enable a more empirical
estimate.
The methodology also estimates the
number of appraisals and evaluations
commissioned by FDIC-supervised
institutions over the previous 12-month
period in order to monitor their real
estate loan portfolios for credit risk. The
methodology assumes that three percent
of the estimated loan count for existing
loans secured by farmland, five percent
of the estimated loan count for existing
1–4 family residential construction
loans, eight percent of the estimated
number of existing closed-end loans
secured by 1–4 family residential
properties, loans secured by multifamily
(5 or more) residential properties, and
loans secured by owner-occupied
nonfarm nonresidential properties, and
ten percent of the estimated number of
existing other construction and
development loans, open-end loans
secured by 1–4 family residential
properties, and loans secured by nonowner-occupied nonfarm nonresidential
properties is representative of the
number of loans for which the
institution commissioned an appraisal
or evaluation in the preceding 12-month
period. These estimates are based on

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supervisory experience since the FDIC
does not currently have access to
information that would enable a more
empirical estimate.
To calculate the total estimated
volume of appraisals and evaluations
associated with a real estate loan for
which an FDIC-supervised institution
would have to comply with the
applicable recordkeeping requirements
of Part 323, the methodology sums the
estimated count of new loans, existing
loans that were refinanced, and loans
for which the institution commissioned
an appraisal or an evaluation over the
preceding 12-month period and assumes
that all of these loans would require an
appraisal or evaluation. Using this
methodology, I estimate that there will
be 227 responses per respondent per
year for this IC. This represents an
increase of 84 (59 percent) from the
prior Information Collection submission
(143). This increase is driven primarily
by a change in the methodology used for
estimating the number of responses per
respondent.
The methodology used to estimate
responses per respondent described
above differs from the methodology
used to estimate the PRA burden of this
information collection when it was last
approved by the OMB in 2018. The
previous submission used dollar volume
information for real estate loan
categories aggregated for all FDICsupervised institutions, rather than for
each institution as described above.
Consequently, even if the total dollar
value of a particular loan type decreased
among FDIC-supervised institutions in
aggregate, the estimated number of new
loans of that type would be still be
positive if it increased for at least one
institution, whereas it would have been
assumed to be zero under the
methodology used for the previous
submission. Additionally, the
methodology used to estimate the
number of responses per respondent in
the last information collection
submission used average loan value
estimates for loans secured by farmland
and loans secured by owner- and nonowner-occupied nonfarm nonresidential
properties of $1 million, rather than the
statistical method just described, to
derive average loan size estimates for
these loan categories. Over the time
period from year-end 2014 to year-end
2020, the statistical method produced
estimates ranging from $563,385 to
$663,766 for the average loan size of
loans secured by farmland, and
$813,999 to $975,836 for loans secured
by nonfarm nonresidential properties.
Since the average loan size estimates for
both loan types were lower than $1
million for the whole time period, the

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estimated number of existing and new
loans for these loan types increased
relative to the estimates used for the
previous submission. These
methodological changes led to more
accurate, and generally larger, estimates
for responses per respondent than the
estimates used in the previous
submission.
Estimated Time per Response—The
FDIC is not revising its estimate of the
time required to complete the
recordkeeping requirements in this IC
and will retain an estimated hourly

performed in writing, in accordance
with uniform standards, by an appraiser
whose competency has been
demonstrated and whose professional
conduct will be subject to effective
supervision.
4. Title: Foreign Banks.
OMB Number: 3064–0114.
Form Number: None.
Affected Public: Insured branches of
foreign banks.
Burden Estimate:

burden per response of 5 minutes, or
0.083 hours.
General Description of the Collection:
FIRREA directs the FDIC to prescribe
appropriate performance standards for
real estate appraisals connected with
federally related transactions under its
jurisdiction. This information collection
is a direct consequence of the statutory
requirement. It is designed to provide
protection for federal financial and
public policy interests by requiring real
estate appraisals used in connection
with federally related transactions to be

SUMMARY OF ANNUAL BURDEN
Estimated
number of
respondents

Information collection description

Type of
burden

Moving a Branch .....................
Consent to Operate .................
Approval to Conduct Activities
Pledge of Assets Documents ..
Pledge of Asset Reports .........
Recordkeeping .........................

Reporting ......................
Reporting ......................
Reporting ......................
Reporting ......................
Reporting ......................
Recordkeeping ..............

Mandatory
Mandatory
Mandatory
Mandatory
Mandatory
Mandatory

......
......
......
......
......
......

Total Estimated Annual
Burden.

.......................................

........................

Estimated
frequency of
responses

Estimated time
per
response

Estimated
annual burden

1
1
1
10
10
10

On Occasion ..
On Occasion ..
On Occasion ..
Quarterly ........
Quarterly ........
On Occasion ..

8 hours ...........
8 hours ...........
8 hours ...........
15 minutes .....
2 hours ...........
120 hours .......

8
8
8
10
80
1,200

........................

1,314

Obligation to
respond

5. Title: Prompt Corrective Action.
OMB Number: 3064–0115.
Form Number: None.
Affected Public: State non-member
banks and state savings associations.
Burden Estimate:

are not permissible for a federally
licensed branch; internal recordkeeping
by such branches; and reporting and
recordkeeping requirements relating to
such a branch’s pledge of assets to the
FDIC. There is no change in the
methodology or substance of this
information collection.

General Description of Collection:
Applications to move an insured
state-licensed branch of a foreign bank;
applications to operate as such
noninsured state-licensed branch of a
foreign bank; applications from an
insured state-licensed branch of a
foreign bank to conduct activities that

SUMMARY OF ESTIMATED ANNUAL BURDEN
[3064–0115]

Prompt Corrective Action
(12 CFR parts 303, 324,
and 390).

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Total Estimated Annual Burden.

Obligation
to respond

Reporting .....

Voluntary ......

......................

........................

General Description of Collection:
The Prompt Corrective Action (PCA)
provisions of section 38 of the Federal
Deposit Insurance Act require or permit
the FDIC and other federal banking
agencies to take certain supervisory
actions when FDIC-insured institutions
fall within certain capital categories.
Various provisions of the statute and the
FDIC’s implementing regulations

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Estimated
number of
respondents

Type of
burden

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On Occasion

......................

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Total
annual
estimated
burden

1.334

........................

64 hours

require the prior approval of the FDIC
before an FDIC-supervised institution,
or certain insured depository
institutions, can engage in certain
activities, or allow the FDIC to make
exceptions to restrictions that would
otherwise be imposed. This collection of
information consists of the applications
that are required to obtain the FDIC’s
prior approval to engage in these

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Estimated
average
number of
responses per
respondent

Estimated
time per
response
(hours)

Estimated
frequency of
responses

activities. There is no change in the
method or substance of the collection.
6. Title: Qualified Financial Contracts.
OMB Number: 3064–0163.
Form Number: None.
Affected Public: State non-member
banks and savings associations.
Burden Estimate:

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Type of burden
(obligation to respond)

IC description

Implementation Burden
Full Scope Entities ................................
Limited Scope Entities ..........................
Application for Extension of Time .........

Estimated
average time
per response
(hours)

Estimated
annual burden
(hours)

Recordkeeping (Mandatory)
Recordkeeping (Mandatory)
Reporting (Required to Obtain a Benefit).

One time ........
One Time .......
On Occasion ..

1
51
1

6,000
23
1

6,000
1,173
1

...............................................

........................

7,174

Recordkeeping (Mandatory)
Recordkeeping (Mandatory)

Annual ............
Annual ............

4
173

250
12

1,000
2,076

Total Estimated Annual Ongoing
Burden.

...............................................

........................

3.076

Total Estimated Annual Burden.

...............................................

........................

10,250

Total Estimated Annual Implementation Burden.
Ongoing Burden
Full Scope Entities ................................
Limited Scope Entities ..........................

Methodology and Assumptions: For
the renewal of this information
collection, the FDIC determined that the
burden estimation methodology should
be revised to separate the
implementation burden estimates for
those entities that are newly subject to
Part 371’s recordkeeping requirements
and the lesser ongoing burden for those
entities that only need to maintain their
existing compliance with Part 371. This
split applies to both the set of Full
Scope Entities and the set of Limited
Scope Entities. The implementation
burden estimates continue to include
reporting burden for the application for
extension of time to comply with Part
371 requirements. FDIC records indicate
that FDIC has never received a request
for an extension of time under Part 371
and is showing one respondent for this
IC to preserve the reporting burden
estimate in the event an institution
elects to submit such a request in the
future.
Estimated Number of Respondents
and Responses—Potential respondents
to this information collection are all
FDIC-insured depository institutions
(IDIs). As of December 31, 2020, there
are 5,010 IDIs.3 Of these institutions,
3,500 are considered ‘‘small’’ for
purposes of the Regulatory Flexibility
Act (RFA).4 An IDI is subject to this

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Estimated
number of
respondents

Frequency of
response

3 FFIEC Call Reports for the period ending
December 31st, 2020.
4 December 31, 2020, Call Report data. The Small
Business Administration (SBA) defines a small
banking organization as having $600 million or less
in assets, where an organization’s ‘‘assets are
determined by averaging the assets reported on its
four quarterly financial statements for the preceding
year.’’ See 13 CFR 121.201 (as amended by 84 FR
34261, effective August 19, 2019). In its
determination, the ‘‘SBA counts the receipts,
employees, or other measure of size of the concern
whose size is at issue and all of its domestic and
foreign affiliates.’’ See 13 CFR 121.103. Following

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information collection if it has received
written notice from the IDI’s appropriate
Federal banking agency or the FDIC that
it is in a troubled condition and written
notice from the FDIC that it is subject to
the reporting and recordkeeping
requirements of Part 371 (together, a
‘‘QFC Notification’’).5 The FDIC has
identified 621 IDIs that were issued QFC
Notifications between December 2008
and July 2020,6 for an average of 52 QFC
Notifications per year. Of these, 51
notifications would have been to
Limited Scope Entities and 1 would
have been to a Full Scope Entity under
Part 371.7 Approximately 361
notifications, or 30 notifications per
year, would be to IDIs considered
‘‘small’’ for purposes of the RFA.8
Based on the average annual number
of IDIs that were issued QFC
Notifications over the twelve-year
period, the FDIC estimates that 51
Limited Scope Entities and 1 Full Scope
Entity would receive a QFC notification
and be subject to implementation
burden.
To estimate the number of IDIs that
will be subject to Part 371 on an ongoing
basis, the FDIC identified those IDIs that
have been issued QFC Notifications and
deducted IDIs that failed subsequent to
these regulations, the FDIC uses a covered entity’s
affiliated and acquired assets, averaged over the
preceding four quarters, to determine whether the
covered entity is ‘‘small’’ for the purposes of RFA.
5 The definition of troubled condition and details
of what entities are covered is described in the final
rule.
6 See the SME analysis separately attached as
‘‘PRA 371 Internal 16 April.docx.’’
7 The definitions of ‘‘Full Scope’’ and ‘‘Limited
Scope’’ became effective on October 1, 2017 as part
of the final rule. However, in order to calculate
representative statistics for estimated respondents
the SME’s applied those definitions to IDIs who
received QFC Notifications in periods prior to
enactment of those definitions.
8 As of December 31, 2020.

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receiving such notification. The FDIC
determined that 185 of the 621 IDIs
notified between 2008 and 2020 had not
failed, as of February 2021. Of these,
173 IDIs would be defined as Limited
Scope Entities under the final rule,9
including 98 IDIs that would be
considered ‘‘small’’ for purposes of the
RFA.10 The FDIC thus estimates that 173
Limited Scope Entities will incur
ongoing recordkeeping burden
associated with maintaining their
existing compliance with Part 371.
The FDIC also identified twelve (12)
Full Scope Entities under Part 371,
which were issued QFC Notifications
between 2008 and 2020, and had not
failed, as of February 2021. Six (6) of
these entities have since been upgraded
and are no longer subject to Part 371.
Two (2) of the remaining entities are
either working towards or will begin to
work towards initial compliance with
this ICR. The remaining four (4) Full
Scope Entities have already completed
their initial compliance efforts (or are
well along in initial compliance efforts
and thus treated as facing ongoing
compliance burden). Thus, the FDIC
estimates that four (4) Full Scope
Entities will incur recordkeeping
burden associated with maintaining
their existing compliance with Part 371.
Estimated Hourly Burden—The FDIC
estimates the information collection
burdens for affected institutions based
on their classifications as either Full- or
Limited Scope Entities under Part 371;
and based on whether they are newly
subject to the requirements
9 The SMEs did not track status upgrades of
limited scope entities for these purposes and,
accordingly, the estimate of the total existing
population of limited scope entities is made
assuming no change in status of an institution
following its first becoming subject to Part 371.
10 As of December 31, 2020.

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Federal Register / Vol. 86, No. 80 / Wednesday, April 28, 2021 / Notices

(implementation burden) or whether
they are responding to the information
collection on an ongoing basis. Full
Scope Entities must complete the eight
QFC Tables contained in Appendix B of
the rule; limited-scope firms must
complete the four QFC Tables contained
in Appendix A of the rule. The FDIC
estimates that new Full Scope Entities
will incur, on average, approximately
6,000 hours to initially complete the
required QFC Tables for all of the QFCs
in their portfolio. FDIC estimates that
Full Scope Entities that already
complied with the final rule in any
previous year will incur, on average,
250 hours ongoing burden to maintain
their QFC Tables.
For the hourly implementation
burden incurred by Limited Scope
Entities, the FDIC assumes that burden
will be based on the number of QFCs in
the entity’s portfolio. The FDIC assumes
that 90 percent of New Limited Scope
Entities, or 46 entities per year, hold 50
or fewer QFCs in their portfolio. These
entities are expected in incur, on
average, 15 hours of implementation
burden in the first year in which they
must comply with the final rule. The
remaining 10 percent of New Limited
Scope Entities, or 5 entities a year, are
assumed to hold more than 50 QFCs in
their portfolio and are expected to incur,
on average, 100 hours of
implementation burden. The average
hourly implementation burden across
all New Limited Scope Entities is thus
approximately 23 hours per
respondent.11 These burdens estimates
incorporate the expected time to prepare
an extension request, if needed.
The FDIC uses the same methodology
to estimate the hourly ongoing burden
for Limited Scope Entities. It assumes
that 90 percent of Limited Scope

Entities that continue to be subject to
Part 371 after one year, or 155 entities
per year, hold 50 or fewer QFCs in their
portfolio and are expected to incur, on
average, 10 hours to maintain their
compliance with the requirements of
Part 371. The remaining 10 percent of
Existing Limited Scope Entities, or 18
entities per year, are assumed to hold
more than 50 QFCs in their portfolio
and are expected to incur, on average,
25 hours of ongoing burden per year.
The average hourly burden across all
New Limited Scope Entities is thus
approximately 12 hours per
respondent.12
These burden estimates, along with
the annual estimated number of entities,
are delineated by burden type in
Summary of Estimated Annual Burden
table. The recordkeeping burdens are
assumed to be one tine for the
implementation phase and one time
annually for the ongoing phase.
Accordingly, the response rate is one
response per respondent per year. The
Summary of Estimated Annual Burden
table also shows the estimated annual
burden of each IC line item, which is
equal to the product of the estimated
number of respondents, the number of
responses per respondent per year, and
the time per response for each line item.
The total estimated annual burden for
this information collection is 10,250
hours, a decrease of 8,470 hours from
the 18,720 estimated annual burden
hours in the currently-approved
information collection request. The
decrease in burden is due to the change
in the methodology used by the FDIC in
estimating annual burden as discussed
above.
General Description of the Collection:
Under the Federal Deposit Insurance
Act (FDIA), Qualified Financial Contract

(‘‘QFCs’’) have been designated for
special treatment by the FDIC in the
event of the failure of an insured
depository institution. As codified in
FDIA as part of the Financial
Institutions Reform, Recovery, and
Enforcement Act of 1989 (FIRREA),
certain timing restrictions are effectively
placed on the FDIC for making decisions
whether to transfer QFCs to another
financial institution, repudiate the
QFCs, or retain the QFCs in the
receivership in the event of an insured
institution’s failure. To make an
informed decision about QFCs in such
situations, the FDIC needs timely
information pertaining to the types and
amounts of QFC contracts held, the
counterparties to these contracts and
their affiliates, the purpose of these
contracts, their maturity dates, the
current value of these contracts, and
whether these contracts are
collateralized. Because of the large
volume of QFC information that a
receiver must process in a limited
timeframe, in Part 371, the FDIC
established QFC recordkeeping
requirements for institutions in a
‘‘troubled condition’’ as that term is
defined in the rule. This information
collection consists of recordkeeping and
reporting requirements for qualified
financial contracts (QFCs) held by
insured depository institutions in
troubled condition.
7. Title: Restrictions on Qualified
Financial Contracts of Subsidiaries of
certain FDIC-Supervised Institutions;
Revisions to the Definition of Qualifying
Master Netting Agreement and Related
Definitions.
OMB Number: 3064–0208.
Form Number: None.
Affected Public: Private sector.
Burden Estimate:

jbell on DSKJLSW7X2PROD with NOTICES

SUMMARY OF ANNUAL BURDEN
Information collection description

Type of
blurden

Obligation to
respond

Approval requests prepared and submitted to the FDIC regarding modifications to enhanced creditor protection
provisions.

Reporting .......

Voluntary ........

Total Estimated Annual Burden .......

........................

Estimated
number of
respondents

Estimated frequency of
responses

Estimated time
per response
(hours)

Estimated
annual burden
(hours)

On occasion ...

........................

General Description of Collection:
This rule is necessary to give effect to
such cross-default restrictions in the
ISDA Protocol. The rule requires that
FDIC-supervised institutions that are

subsidiaries of GSIBs and their
counterparties either adhere to the ISDA
Protocol or take the prescribed steps to
amend the contractual provisions of
their QFCs, consistent with the

11 23.34 hours = (46 respondents * 15 hours + 5
respondents * 100 hours)/51 total respondents.

12 11.56 hours = (155 respondents * 10 hours +
18 respondents * 25 hours)/173 total respondents.

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19:17 Apr 27, 2021

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requirements in the rule, within a
specified period of time. If such
institutions elect to amend their QFCs
in lieu of adhering to the ISDA Protocol,
they must seek the FDIC’s approval of

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jbell on DSKJLSW7X2PROD with NOTICES

Federal Register / Vol. 86, No. 80 / Wednesday, April 28, 2021 / Notices
the proposed amendments, giving rise to
the information collection. The
information collection is necessary to
ensure QFC contracts are amended in
compliance with the rule. The FDIC’s
rule applies to FDIC-supervised
institutions that are subsidiaries of
GSIBs and sets forth requirements
parallel to those contained in similar
rules recently published by the FRB and
the OCC with regard to entities they
supervise to ensure consistent
regulatory treatment of QFCs among the
various entities within a GSIB group.All
institutions that were covered FSIs on
January 1, 2018 were required to comply
with the QFC stay rule by January 1,
2020. That means that, except for the
three possible exceptions described
below, all required paperwork revisions
that are required to be completed by the
covered entities to comply with the rule
should have been completed by January
1, 2020. Consequently, for the purpose
of 2021 and future PRA analysis, the
FDIC does not expect any on-occasion
paperwork burden associated with the
rule. The three exceptions to the
foregoing statement are: (i) Under the
QFC stay rule, a covered FSI is not
required to bring QFCs with a
counterparty that were entered into
prior to January 1, 2019 into compliance
unless the covered FSI or any affiliate of
the covered FSI becomes party to a QFC
with the same counterparty or a
consolidated affiliate of that party on or
after January 1, 2019 (subject to special
rules relating to institutions that become
covered FSIs after January 1, 2018); (ii)
entities that become covered entities
after January 1 2018 have extended
compliance periods (which can extend
the date for compliance to the date that
is the first day of the calendar quarter
immediately following one year, 18
months or two years (depending on the
type of counterparty) from the date the
entity first became a covered entity);
and (iii) a covered FSI might enter into
a QFC with a counterparty that is not
yet covered by documentation that
complies with the rule. Moreover,
because the market practices and
conventions relating to derivatives,
repo, SFT and other QFC products have
evolved to include the stay provisions
in the documentation used by market
participants, FDIC estimates that any
legal documentation review will be
addressed as a part of the normal
business on-boarding or maintenance of
the business relations. However, FDIC
recognizes that there is a possibility of
a new entrant or a new product that can
fall under the scope of the subject rule
and, consequently, provides for a

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19:17 Apr 27, 2021

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possibility of one or more respondents
that can be impacted by the rule.
As noted above, the industry
undertook major initiatives to achieve
streamlining and straight-through
processing for both on-boarding and
maintenance of the QFC records over
the last years. Consequently, in case a
new entrant/product will be scoped-in
by the subject rule to impose the
paperwork burden, FDIC estimates that
such burden will be less than half of the
burden estimated in 2018 thanks to the
automation and standardization of
business processes. Accordingly, the
time per response has been revised to 20
hours from the 40 hours previously
estimated.
Request for Comment
Comments are invited on: (a) Whether
the collection of information is
necessary for the proper performance of
the FDIC’s functions, including whether
the information has practical utility; (b)
the accuracy of the estimates of the
burden of the information collection,
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 information
on respondents, including through the
use of automated collection techniques
or other forms of information
technology. All comments will become
a matter of public record.
Federal Deposit Insurance Corporation.
Dated at Washington, DC, on April 22,
2021.
James P. Sheesley,
Assistant Executive Secretary.
[FR Doc. 2021–08803 Filed 4–27–21; 8:45 am]
BILLING CODE P

FEDERAL MARITIME COMMISSION
Notice of Agreements Filed
The Commission hereby gives notice
of the filing of the following agreements
under the Shipping Act of 1984.
Interested parties may submit
comments, relevant information, or
documents regarding the agreements to
the Secretary by email at Secretary@
fmc.gov, or by mail, Federal Maritime
Commission, Washington, DC 20573.
Comments will be most helpful to the
Commission if received within 12 days
of the date this notice appears in the
Federal Register. Copies of agreements
are available through the Commission’s
website (www.fmc.gov) or by contacting
the Office of Agreements at (202)-523–
5793 or tradeanalysis@fmc.gov.

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22437

Agreement No.: 011982–004.
Agreement Name: Evergreen Line
Joint Service Agreement.
Parties: Evergreen Marine Corp.
(Taiwan) Ltd.; Evergreen Marine (UK)
Ltd.; Evergreen Marine (Hong Kong)
Ltd.; Italia Marittima S.P.A.; Evergreen
Marine (Singapore) Pte. Ltd.; and
Evergreen Marine (Asia) Pte. Ltd.
Synopsis: The amendment adds a new
party to the Agreement and makes
updates to addresses for existing parties.
Proposed Effective Date: 5/31/2021.
Location: https://www2.fmc.gov/
FMC.Agreements.Web/Public/
AgreementHistory/466.
Dated: April 23, 2021.
Rachel E. Dickon,
Secretary.
[FR Doc. 2021–08838 Filed 4–27–21; 8:45 am]
BILLING CODE 6730–02–P

FEDERAL RESERVE SYSTEM
Change in Bank Control Notices;
Acquisitions of Shares of a Bank or
Bank Holding Company
The notificants listed below have
applied under the Change in Bank
Control Act (Act) (12 U.S.C. 1817(j)) and
§ 225.41 of the Board’s Regulation Y (12
CFR 225.41) to acquire shares of a bank
or bank holding company. The factors
that are considered in acting on the
applications are set forth in paragraph 7
of the Act (12 U.S.C. 1817(j)(7)).
The public portions of the
applications listed below, as well as
other related filings required by the
Board, if any, are available for
immediate inspection at the Federal
Reserve Bank(s) indicated below and at
the offices of the Board of Governors.
This information may also be obtained
on an expedited basis, upon request, by
contacting the appropriate Federal
Reserve Bank and from the Board’s
Freedom of Information Office at
https://www.federalreserve.gov/foia/
request.htm. Interested persons may
express their views in writing on the
standards enumerated in paragraph 7 of
the Act.
Comments regarding each of these
applications must be received at the
Reserve Bank indicated or the offices of
the Board of Governors, Ann E.
Misback, Secretary of the Board, 20th
Street and Constitution Avenue NW,
Washington, DC 20551–0001, not later
than May 13, 2021.
A. Federal Reserve Bank of Kansas
City (Porcia Block, Vice President) 1
Memorial Drive, Kansas City, Missouri
64198–0001:
1. The Bruce L. Bachman Trust for
Whitney E. Martin, Whitney E. Martin,

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File Type	application/pdf
File Modified	2021-04-28
File Created	2021-04-28