The National Credit Union Administration (NCUA) is accepting comments until Sept. 24 on its proposed extensions of four information collections. All are proposed for extension without revision except one – the designation of low-income status.
The reason for the revision is that the agency’s appeals procedures are being moved to another section of the NCUA rules and regulations. The notice for comment says this reduces burden for credit unions submitting information for the low-income designation collection.
The four collections being extended are as follows:
- Designation of Low Income Status. The Federal Credit Union Act (FCU Act) authorizes the NCUA Board to define low-income members so that credit unions with a membership serving predominantly low-income members can benefit from certain statutory relief and receive assistance from the Community Development Revolving Loan Fund (CDRLF). Credit unions need a “low-income” designation from NCUA to receive this authority, and the information collected helps the agency determine whether a credit union qualifies for the designation. NCUA estimates 252 respondents and the same number of annual responses, with estimated 1.2 burden hours per response (total, 303).
- Notice of Change of Officials and Senior Executive Officers. This affects NCUA Forms 4063 and 4063a. NCUA is required under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) to obtain sufficient information from new officials or senior executive officers of troubled or newly chartered credit unions to determine their fitness for the position. The forms provide a standardized format to collect the information needed. NCUA estimates 219 respondents and 483 annual responses, with 1.83 burden hours per response (total 884).
- Prompt Corrective Action. Federal law mandates prompt corrective action (PCA) requirements for federally insured credit unions (FICUs) that become less than well capitalized. The purpose is to resolve the problems of the FICUs at the least possible long-term loss to the National Credit Union Share Insurance Fund (NCUSIF). The NCUA Board is required to adopt, by regulation, a PCA system to restore the net worth of inadequately capitalized FICUs; and (2) develop an alternative PCA system for new credit unions that carries out the purpose of PCA while allowing an FICU reasonable time to build its net worth to an adequately capitalized level. NCUA estimates 642 respondents and 642 annual responses, with an estimated 5.99 burden hours per response (total, 3,847).
- Involuntary Liquidation Proof of Claim Form. This utilizes NCUA Form 7250. NCUA is appointed liquidating agent of a credit union when the credit union is placed into involuntary liquidation. Under the rules, creditors must present a written claim to the liquidating agent by the date specified in the notice to creditors. Those creditors making a claim must document their claim in writing and submit a form to the liquidating agent. In addition, the liquidating agent may require a claimant to submit supplemental evidence to support its claim. This collection of information is necessary to protect the National Credit Union Share Insurance Fund in determining valid claims. NCUA estimates 200 respondents, 1.1 response per respondent and 1 burden hour per response (total, 220).
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.