SUPPORTING STATEMENT
ASSET PURCHASER ELIGIBILITY
OMB No. 3064‑0135
INTRODUCTION
The FDIC requests OMB approval to continue using the currently approved collection of information captioned above. The Purchaser Eligibility Certification (PEC) implements the statutory requirement that assets held by the FDIC in the course of liquidating any federally insured institution not be sold to persons who contributed to the demise of an insured institution in specified ways. The current clearance for the collection expires on May 31, 2012.
A. JUSTIFICATION
1. Circumstances and Need
The FDIC acquires assets as the result of being appointed conservator or receiver of failing financial institutions and generally sells these assets through competitive sales. The FDIC is statutorily required to promulgate a regulation prohibiting the sale of assets held by insured depository institutions that have been placed under the conservatorship or receivership of the FDIC to certain individuals or entities that profited or engaged in wrongdoing at the expense of those failed institutions, or seriously mismanaged those failed institutions. The statute specifies classes of persons prohibited from purchasing assets of failed institutions from the FDIC. (FDI Act Section 11(p), 12 U.S.C. 1821(p)). The statutory requirement is implemented by a regulation, “Restrictions on the Purchase of Assets from the FDIC,” (published at 65 Federal Register 14816, March 20, 2000) and a Purchaser Eligibility Certification that the FDIC uses to determine a person’s eligibility to purchase assets.
2. Use of Information Collected
The FDIC’s Division of Resolutions and Receiverships uses the PEC to ensure compliance with the statutory requirements before each sale of assets.
3. Use of Technology to Reduce Burden
Conversion of this form to electronic submission is not practical because the supporting documentation is not electronic.
4. Efforts to Identify Duplication
There is no duplication. The information is not available elsewhere.
5. Minimizing the Burden on Small Banks
The rule will not have a significant economic impact on a substantial number of small entities. Most of the questions asked on the PEC are required by statute.
6. Consequences of Less Frequent Collection
As a result of the statute’s prohibition, each purchase of assets from the FDIC requires an acceptable PEC as a prerequisite.
7. Special Circumstances
Generally, none of the special circumstances exist. However, the nature of the sales process may not always allow for 30 days for a potential purchaser to respond to the certification requirement. It is noted, however, that the average time for response is approximately 30 minutes.
8. Consultation with Persons Outside the FDIC
A“first” Federal Register notice seeking comment was published on February 23, 2012 (77 FR 10743). No comments were received.
9. Payment or Gift to Respondents
Not applicable.
10. Confidentiality
No assurance of confidentiality is made.
11. Information of a Sensitive Nature
The collection requires no information of a sensitive nature.
12. Estimate of Hour Burden and Annual Costs
Number of respondents: 600
Time per response: 30 minutes
Total annual burden: 300 hours
Estimate of annualized cost: 600 responses x ½ hour x $40/hour = $12,000.
13. Capital, Start-Up and Maintenance Costs
Not applicable.
14. Estimated Annual Cost to the Federal Government
Estimated 600 responses x 1/2 hour to review response x $30 / hour = $9,000.
15. Reason for Change in Burden
The burden decrease of 950 hours reflects an adjustment (-1900) to the number of respondents to reflect the actual number of PECs used for the sale of securities during the previous year.
16. Publication.
Not applicable.
17. Display of Expiration Dates
The expiration date is displayed on the form.
18. Exceptions to Certification
None.
B. Statistical Methods
Not applicable.
| File Type | application/msword |
| File Modified | 2012-05-02 |
| File Created | 2012-05-02 |