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1306 Federal Register / Vol. 78, No. 5 / Tuesday, January 8,
2013 / Notices
1 Insured Federal depository institution means anentity that is
a Federal depository institution andan insured depository
institution under the FederalDeposit Insurance Act. See 12 U.S.C.
1813(c)(2) and(4). National banks, Federal savings associationsand
insured Federal Branches are insured Federaldepository
institutions.
212 U.S.C. 1813(c)(4).3Except as otherwise specified, this
notice refers
to both swaps and security-based swaps as swaps,and both swap
dealers and security-based swapdealers as swap dealers.
4Guidance on the Effective Date of Section 716,77 FR 27465 (May
10, 2012).
5See Dodd-Frank Act section 716(f), 15 U.S.C.8305(f).
6The OCC is the appropriate Federal bankingagency of Federal
depository institutions. 12 U.S.C.1813(q)(1).
lease. These requirements enable theOCC to ensure that a bank is
not holdingthe property for speculative reasons andthat the value
of the property isrecorded in accordance with generallyaccepted
accounting principles (GAAP).
Section 23.5
Under 12 CFR 23.5, leases are subject
to the lending limits prescribed by 12U.S.C. 84, as implemented
by 12 CFRpart 32, or, if the lessee is an affiliate ofthe bank, to
the restrictions ontransactions with affiliates prescribed by12
U.S.C. 371c and 371c1. See 12 CFR23.6. Twelve U.S.C. 24 contains
twoseparate provisions authorizing anational bank to acquire
personalproperty for purposes of lease financing.Twelve U.S.C.
24(Seventh) authorizesleases of personal property
(Section24(Seventh) (Leases) if the lease servesas the functional
equivalent of a loan.See 12 CFR 23.20. A national bank may
also acquire personal property forpurposes of lease financing
under theauthority of 12 U.S.C. 24(Tenth) (CEBALeases). Section
23.5 requires that if a
bank enters into both types of leases, itsrecords must
distinguish between thetwo types of leases. This information
isrequired to prove that the national bankis complying with the
limitations andrequirements applicable to the twotypes of
leases.
National banks use the information toensure their compliance
with applicableFederal banking law and regulationsand accounting
principles. The OCCuses the information in conducting
bankexaminations and as an auditing tool toverify bank compliance
with laws andregulations. In addition, the OCC usesnational bank
requests for permission toextend the holding period for
off-leaseproperty to ensure national bankcompliance with relevant
laws andregulations and to ensure bank safetyand soundness.
Type of Review:Extension of acurrently approved collection.
Affected Public:Individuals;Businesses or other for-profit.
Estimated Number of Respondents:370.
Estimated Total Annual Responses:370.Frequency of Response:On
occasion.Estimated Total Annual Burden:685.The OCC published this
collection for
60 days of comment on October 5, 2012(77 FR 61050). No comments
werereceived. Comments continue to beinvited on:
(a) Whether the collection ofinformation is necessary for the
properperformance of the functions of theagency, including whether
theinformation has practical utility;
(b) The accuracy of the agencysestimate of the burden of the
collectionof information;
(c) Ways to enhance the quality,utility, and clarity of the
information to
be collected;(d) Ways to minimize the burden of
the collection on respondents, includingthrough the use of
automated collectiontechniques or other forms of
informationtechnology; and
(e) Estimates of capital or start-upcosts and costs of
operation,maintenance, and purchase of servicesto provide
information.
Dated: January 2, 2013.
Michele Meyer,
Assistant Director, Legislative and RegulatoryActivities
Division.
[FR Doc. 201300091 Filed 1713; 8:45 am]
BILLING CODE 481033P
DEPARTMENT OF THE TREASURYOffice of the Comptroller of
theCurrency
[Docket ID OCC20130001]
Transition Period Under Section 716 ofthe Dodd-Frank Wall Street
Reform andConsumer Protection Act
AGENCY: Office of the Comptroller of theCurrency, Department of
the Treasury.
ACTION: Notice of guidance.
SUMMARY: The Office of the Comptroller
of the Currency (OCC) is notifyinginsured Federal depository
institutions 1that are or may become swap dealersthat the OCC is
prepared to considerfavorably requests for a transition
periodpursuant to section 716(f) of the Dodd-Frank Act, provided
that such requestsconform to the procedures andconditions
established in this notice.
DATES: This guidance is effectiveimmediately. Written requests
fortransition periods should be submittedto the OCC by January 31,
2013.
FOR FURTHER INFORMATION CONTACT:Roman Goldstein, Senior
Attorney, TedDowd, Assistant Director, or EllenBroadman, Director,
Securities andCorporate Practices Division, (202) 6495510, 400 7th
St. SW., Washington, DC20219.
SUPPLEMENTARY INFORMATION:
A. Background
Section 716 of the Dodd-Frank WallStreet Reform and Consumer
ProtectionAct (Dodd-Frank Act) prohibitsproviding Federal
assistance to swapsentities, a term that includes Federaldepository
institutions 2 that are swapdealers.3 The prohibition does not
apply
to insured depository institutions thatlimit their swap
activities to thoseactivities specified in section
716(d)(conforming swap activities). The OCC,Board of Governors of
the FederalReserve System (Board), and FederalDeposit Insurance
Corporation (FDIC)jointly issued guidance that section716s
effective date is July 16, 2013.4
Section 716(f) provides that theappropriate Federal banking
agencyshall permita transition period, asappropriate, for insured
depositoryinstitution swap entities to divest orcease nonconforming
swap activities.5
The prohibition on Federal assistancedoes not apply during this
transitionperiod. The transition period, which
begins on the effective date, initiallymay be up to 24 months,
as determined
by the insured depository institutionsappropriate Federal
banking agency 6 inconsultation with the CommodityFutures Trading
Commission (CFTC)and the Securities and ExchangeCommission (SEC).
The appropriateFederal banking agency, after consultingwith the
CFTC and SEC, may extend thetransition period for up to
oneadditional year.
In establishing the length of atransition period for an
insureddepository institution, the appropriateFederal banking
agency must take intoaccount and make written findingsregarding the
potential impact of thedivestiture or cessation ofnonconforming
swap activities on theinstitutions (1) mortgage lending, (2)small
business lending, (3) job creation,and (4) capital formation versus
thepotential negative impact on insureddepositors and the FDICs
DepositInsurance Fund (DIF). The appropriateFederal banking agency
may consider
such other factors as it deemsappropriate.
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1307Federal Register / Vol. 78, No. 5 / Tuesday, January 8, 2013
/ Notices
7Furthermore, mandatory clearing rules are notin place for many
standardized credit default swaps(CDS) and the market has not moved
to cleared CDSfor a variety of products. Section 716(d)(3)
providesthat an insured depository institution may act as aswaps
entity for CDS if they are cleared.
8The Commodity Futures Trading Commissionrecently exempted
certain swap dealers fromcertain requirements imposed by title VII
of theDodd-Frank Act in order to ensure an orderlytransition to the
new regulatory regime and toprovide greater legal certainty to
marketparticipants. Final Exemptive Order RegardingCompliance with
Certain Swap Regulation, at 58
(Dec. 21, 2012), available
athttp://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/federalregister122112.pdf.
9Transition periods will provide appropriate timefor
institutions to negotiate and document newmaster swap agreements
individually with each oftheir clients, customers, and
counterparties asnecessary for section 716
conformance.Additionally, a transition period will provide moretime
for the transfer of non-conforming swapsactivities to affiliates,
including in some cases theestablishment of new affiliates
entailing requisiteregulatory approvals from the SEC, CFTC, and
stateauthorities, and in all cases the transfer of back-office
functions and the making of necessaryarrangements for the custody
of customer margincollateral.
10An insured depository institution whose swapactivities are
presently limited to conforming swapactivities is not eligible for
a transition periodbecause it would not be subject to the
prohibitionon Federal assistance. See Dodd-Frank Act section716(f),
15 U.S.C. 8305(f).
11See Further Definition ofSwap Dealer, 77 FR30595 (May 23,
2012).
12See Dodd-Frank Act section 716(f), 15 U.S.C.8305(f).
B. Transition Period
For the following reasons, the OCChas concluded that transition
periodsshould be provided to insured Federaldepository institutions
to providesufficient opportunity for institutions toconform their
swaps activities in anorderly manner. First, section 716
assumes a regulatory framework that isnot yet complete. Further
developmentof the Title VII regulatory framework isnecessary for
insured Federal depositoryinstitutions to make
well-informeddeterminations concerning businessrestructurings that
may be necessary forsection 716 conformance.7 Second, theprovision
of transition periods while theTitle VII regulatory
frameworkcontinues to develop will provideregulatory certainty for
insured Federaldepository institutions in the near termand will
mitigate potential disruptionsto client services.8 Third,
transition
periods will mitigate operational andcredit risks for insured
Federaldepository institutions.9
Section 716 anticipates that transitionperiods will be provided
to avoidunwanted adverse consequences frompremature implementation
of section716. For the reasons discussed above,the OCC believes
that implementation ofsection 716 without transition periodswould
cause unwanted adverseconsequences and that transitionperiods
therefore are appropriate.Accordingly, an insured Federaldepository
institution that is or will bea swaps entity and that seeks
atransition period for its nonconformingswaps activities should
formally request
a transition period from the OCC.10 TheOCC is prepared to
consider suchrequests favorably, provided that therequests conform
to the guidanceprovided below.
Each request must be written andspecify the transition period
appropriateto the institution, up to a two-yeartransition period
commencing from July
16, 2013. The request must also discuss:1. The institutions plan
for
conforming its swap activities;2. How the requested
transition
period would mitigate adverse effects onmortgage lending, small
businesslending, job creation, and capitalformation;
3. The extent to which the requestedtransition period could have
a negativeimpact on the institutions insureddepositors and the
DIF;
4. Operational risks and other safetyand soundness concerns that
atransition period would mitigate.
5. Other facts that the institutionbelieves the OCC should
consider.
An insured Federal depositoryinstitution that is unsure if or
when itwill be or become a swaps entity mayrequest a transition
period. The requestmust contain the elements describedabove and
additionally explain why theinstitution believes it might be or
become a swaps entity under the CFTCsdefinition ofswap dealeror
the SECsdefinition ofsecurity-based swapdealer.11 The OCC may
require arequesting insured Federal depositoryinstitution to
provide additionalinformation before establishing atransition
period. The OCC may imposesuch conditions on a transition periodas
it deems necessary and appropriate.12
Authority: 15 U.S.C. 8305.
Dated: December 31, 2012.
Thomas J. Curry,
Comptroller of the Currency.
[FR Doc. 201300093 Filed 1713; 8:45 am]
BILLING CODE P
DEPARTMENT OF THE TREASURY
United States Mint
Privacy Act of 1974; Systems ofRecords
AGENCY: United States Mint, Treasury.
ACTION: Notice of systems of records.
SUMMARY: In accordance with therequirements of the Privacy Act
of 1974,as amended, 5 U.S.C. 552a, the UnitedStates Mint, Treasury,
is publishing itsinventory of Privacy Act systems ofrecords.
SUPPLEMENTARY INFORMATION: Pursuantto the Privacy Act of 1974 (5
U.S.C.552a) and the Office of Management andBudget (OMB), Circular
No. A130, theUnited States Mint has completed areview of its
Privacy Act systems ofrecords notices to identify changes thatwill
more accurately describe theserecords. The systems of records
werelast published in their entirety on July22, 2008, at 73 FR
4266242670.
The changes throughout thedocument are editorial in nature
andreflect non-substantive updates to theUnited States Mints
management and
retention of records.Systems Covered by This Notice
This notice covers all systems ofrecords maintained by the
United StatesMint as of January 8, 2013. The systemnotices are
reprinted in their entiretyfollowing the Table of Contents.
Veronica Marco,
Acting Deputy Assistant Secretary for Privacy,Transparency, and
Records.
Table of Contents
United States Mint
UNITED STATES MINT .001CashReceivable Accounting
InformationSystem.
UNITED STATES MINT .003Employee andFormer Employee Travel and
TrainingAccounting Information System.
UNITED STATES MINT .004OccupationalSafety and Health, Accident
and InjuryRecords, and Claims for Injuries orDamage Compensation
Records.
UNITED STATES MINT .005Employee-Supervisor Performance
Evaluation,Counseling, and Time and AttendanceRecords.
UNITED STATES MINT .007GeneralCorrespondence.
UNITED STATES MINT .008EmployeeBackground Investigations
Files.
UNITED STATES MINT .009Retail SalesSystem (RSS); Customer
Mailing List;Order Processing Records for Coin Sets,Medals and
Numismatic Items; Recordsof Undelivered Orders; and
ProductDescriptions, Availability and Inventory.
UNITED STATES MINT .012Union andAgency Negotiated Grievances;
AdversePersonnel Actions; DiscriminationComplaints; Complaints and
Actions
before Arbitrators, AdministrativeTribunals and Courts (Third
Parties).
United States Mint
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