OCC 2005-20 OCC Bulletin Subject: Notice of Comptroller of the Currency Fees for Year 2005 Description: Amendment to Year 2005 Fee Structure Date: May 6, 2005 TO: Chief Executive Officers of All National Banks, Federal Branches and Agencies, Department and Division Heads, and All Examining Personnel The purpose of this issuance is to inform all national banks and federal branches and agencies of revised fees charged by the Office of the Comptroller of the Currency (OCC) for year 2005. Changes apply beginning June 6, 2005. A new fee is being added and one eliminated, since the publication of the 2005 fee schedule. The OCC is adding a fee for an application to make a fundamental change to the asset composition of a national bank under new section 5.53 of the OCC's rules, 12 CFR 5.53. The requirement for approval in these circumstances is detailed in the OCC's final rule on fundamental changes in the asset composition of a bank, published at 69 FR 50293 (August 16, 2004). Specifically, the OCC will charge a $10,000 fee for an application to reactivate a charter of a formerly dormant bank or a national bank that recently was stripped of its assets and liabilities and became dormant under 12 CFR 5.53. Reactivation of a charter can occur by subsequent purchase of assets, other acquisitions of assets, other expansion of its operations, or by any other means not herein identified. The OCC will not require a fee for an application to make a fundamental change to the asset composition by stripping a national bank of its assets and liabilities under this rule. The fee being removed is for all After-the-Fact notices of operating subsidiaries, including noncontrolling investments under 12 CFR 5.33(c). LICENSING FEES 1 [individual number after text line = endnotes (17 total)] Reference: 12 CFR 5.5 [http://www.occ.treas.gov/fr/fedregister/69fr50293.pdf] The Licensing Fee Schedule is as follows: (table format: two-column) Application Type Fee New National Bank Charter Individuals and Nonbank Holding Company Sponsored 2 * Full Service $25,000 * Credit Card 35,000 * Trust 25,000 * Internet - Primary 3 50,000 Bank Holding Company Sponsored * Full Service 10,000 * Credit Card 10,000 * Trust 10,000 * Internet - Primary 3 50,000 * Bankers' Bank 25,000 Low- and Moderate-Income Area 4 0 Conversion to a National Bank Standard 5,000 Expedited 2,500 Business Combination Between Banks 5 Standard 6,000 Expedited - Business Reorganization 5 2,000 Expedited - Streamlined Application 5 4,000 Combination with Nonbank Subsidiary or Affiliate 6 2,000 Expedited Reorganization 7 250 Failure Resolution Acquisition by De Novo Group 7,500 Acquisition by Existing Bank, Bank Holding Company, or Experienced Group 2,000 Branches 8 Standard 350 Expedited 0 Low- and Moderate-Income Area 4/ or Indian Reservations 8 0 Branch Relocation Standard 350 Expedited 0 Short-Distance 0 Main Office Relocation To Existing Branch Within City Limits 0 Other - Standard 700 Other - Expedited 350 Subsidiary Standard 2,700 Multi-Bank Operating Subsidiary as above +100 for each add'l bank After-the-Fact 0 Change in Bank Control 9 New Entrant to System 10,000 After-the-Fact 5,000 Existing Officer/Director/National Bank 2,000 Fundamental Change in Asset Composition of Bank Stripping of Charter by Sale or Other Disposition of Assets 0 Reactivation of Dormant/Stripped Charter 10 10,000 Increase in Permanent Capital 11 Standard Request for Approval 500 Expedited Request for Approval 250 Reduction in Permanent Capital 12 Standard 500 Expedited 250 Subordinated Debt as Capital 13 Standard Application for Approval 1,000 Expedited Approval 500 Request to Prepay 250 Fiduciary Powers Standard 1,600 Expedited 800 Bank Service Corporation Standard 2,000 After-the-Fact 500 Dividend Cash Dividend 0 Dividend-in-Kind 250 Stock Appraisal 14 8,200 Section 914 Notice (Changes in directors or senior executive officers) 35 Federal Branches and Agencies 15 Initial Federal Branch or Agency 10,000 Additional Federal Branch or Agency * Standard 1,000 * Expedited 500 Relocation * Standard 16 350 * Expedited 0 * Short-Distance 0 Change of Status - State to Federal * Standard 3,600 * Expedited 1,800 Change of Status - Other 17 * Standard 700 * Expedited 350 Fiduciary Powers * Standard 1,600 * Expedited 800 Voluntary Liquidation 0 Lawrence E. Beard Deputy Comptroller for Licensing Attachment: 69 FR 50293 [http://www.occ.treas.gov/fr/fedregister/69fr50293.pdf] LICENSING FEES - Endnotes _______________________________ 1 Expedited processing is available to eligible banks as defined in 12 CFR 5 and 28. Applicants may request a reduced fee for transactions requiring multiple filings, steps, or banks. Applicants requesting reduced fees should consult with the licensing manager in the appropriate district office in advance of filing. Generally, fee concessions are not granted unless savings in the OCC's processing costs are demonstrated. 2 These fees are appropriate for charter applications submitted by a group of individuals or a sponsor that is not a bank holding company for purposes of the Bank Holding Company Act; or a sponsor that has received Federal Reserve Board approval as a bank holding company but has been in operation for less than three years prior to filing the application to organize a new national bank. 3 Includes banks that will operate predominantly on the Internet, but also have limited branch or nonbranch physical facilities, such as kiosks or ATMs (limited facility bank), as well as banks that will operate solely via the Internet (Internet- only bank). 4 The OCC does not require a licensing filing fee for applications for new national bank charters or branches to be located in a low- or moderate-income area as defined in 12 CFR 25.12(l), (n)(l), and (n)(2), and where no other depository institution operates a branch or main office. 5 The stated fees are for a transaction involving two banks. If more than two affiliated banks are involved, and, if the following criteria are met, the OCC may charge a fee of $100 for each additional intrastate charter and $200 for each additional interstate charter involved in the transaction. Criteria: a) the acquiring bank is eligible, b) current national bank assets exceed nonnational bank assets, and c) the combination presents no expected complications. Otherwise, additional fees will be required (equal to no more than one-half the stated fee times the number of banks), based on the marginal increases in the OCC's processing costs attributable to the additional banks. An application that does not qualify for expedited review because it involves either an interim bank, a trust bank, or a credit card bank, is nonetheless charged the expedited-business reorganization fee if (1) the interim bank is merging with an eligible bank or (2) the trust bank or credit card bank is a subsidiary of a bank holding company of which its lead bank is an eligible national bank or is a subsidiary of an eligible national bank. However, the application is not eligible for expedited review. The "Expedited - Business Reorganization" fee is charged for branch purchase and assumption transactions between affiliated institutions. Purchase and assumption transactions between unaffiliated banks are charged either the "Standard" or the "Expedited-Streamlined Application" fee, as appropriate. The definition of business reorganization is found at 12 CFR 5.33(d)(2). The definition of a streamlined application is found at 12 CFR 5.33(j)(1). 6 Transactions conducted pursuant to 12 USC 215a-3. 7 Transactions conducted pursuant to 12 USC 215a-2. 8 The fee listed is for one branch. Multiple branches filed together and published on the same date may be charged $100 per additional bank branch. The OCC does not require a licensing filing fee for applications for branches to be located on an Indian reservation. 9 The fee for a change-in-bank-control filing should be borne by the party(ies) acquiring the shares. The fee for increases by an existing officer or director is available for persons who have been associated with the bank for more than three years. 10 The OCC will charge a fee for an application to reactivate a charter of a formerly dormant bank or a national bank that recently was stripped of its assets and liabilities and became dormant under 12 CFR 5.53. Reactivation of a charter can occur by subsequent purchase of assets, other acquisitions of assets, other expansion of its operations, or by any other means not herein identified. 11 A national bank generally need only submit a notice to increase its permanent capital. However, prior OCC approval is required to increase permanent capital if a bank is required by the OCC to obtain prior approval; it plans to sell common or preferred stock for consideration other than cash; or it will receive a material noncash contribution to capital surplus. 12 Includes distributions from surplus or surplus accounts (unless to pay dividends from surplus that was transferred from prior period earnings); acquisitions of treasury stock; or retirement of outstanding shares. The expedited fee applies to an application to conduct a reverse stock split. No fee is required for applications to pay a dividend pursuant to 12 USC 60(b) unless it is a dividend-in-kind. 13 Prior approval is required if the OCC has notified the bank that it must receive prior approval or the bank will become inadequately capitalized after the transaction. Otherwise, a bank may issue subordinated debt without prior OCC approval. However, if the bank would like the subordinated debt to count as Tier 2 capital, it must provide the OCC with notification after the debt has been issued. No fee is charged for this request. No approval is required for eligible banks to repay subordinated debt. 14 The fee for a stock appraisal must be borne by the bank which, in the case of a business combination, is the surviving bank. 15 After-the-fact merger applications could be subject to a fee. If a fee is required, it will be determined based on the specific circumstances surrounding the transaction. 16 Interstate relocations are processed under standard procedures. 17 There is no fee for a downgrade in the status of the federal branch or agency.