OCC 2006-45 OCC Bulletin Subject: Notice of Comptroller of the Currency Fees for Year 2007 Description: Year 2007 Fee Structure Date: December 1, 2006 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 fees charged by the Office of the Comptroller of the Currency (OCC) for year 2007. Changes are effective January 1, 2007. The fee for an expedited subordinated debt filing of $500 has been eliminated since the publication of the 2006 Fee Schedule. There is no longer an expedited process for subordinated debt filing. SEMIANNUAL ASSESSMENT Reference: 12 CFR 8.2 and 8.6 2007 Assessment Schedule Effective January 1, 2007: * Several permanent changes to the assessment collection process were implemented in 2006. These changes were based on revisions to the assessment regulations adopted by the OCC (see 71 Federal Register 42017, dated July 25, 2006). - Assessments are due March 31 and September 30, based on call report information as of December 31 and June 30, respectively. The assessments cover the six-month period beginning on January 1 and July 1, respectively. For example, the assessment due March 31, 2007, covers the period January 1 through June 30, 2007. - Banks are no longer required to calculate their assessment and call in the amount to be debited from their account. The OCC will calculate the assessment due and draft the amount due on March 31 and September 30. The OCC will provide a seven-business-days notice (at least) of the amounts to be drafted from an institution's account. The institution is responsible for ensuring that the accounts are properly funded on the due dates. * The marginal rates of the OCC's general assessment schedule continue to be indexed to reflect inflation, as measured by the Gross Domestic Product Implicit Price Deflator (GDPIPD) for the previous June-to-June period. The GDPIPD adjustment is 3.2 percent for 2007. As was the case the previous five years, the indexation adjustment will apply only to the first $20 billion in a national bank's assets. * Fees assessed independent trust banks and independent credit card banks have been adjusted for inflation as well. The schedules shown below reflect these changes. * As was the case in 2005 and 2006, the OCC will charge interest on all payments received after the due date. The interest rate charged will be the United States Treasury Department's current value of funds rate that is published quarterly in the Federal Register. * National banks that depart the national banking system on or before December 31, 2006, or June 30, 2007, will not be subject to the semi-annual assessment for the period beginning January 1, 2007, or July 1, 2007, respectively. Only those institutions leaving the national banking system prior to the close of business on those dates avoid paying the semi-annual assessment for the period beginning January 1, 2007, or July 1, 2007, as applicable. The OCC's assessment schedule continues to include a surcharge for banks that require increased supervisory resources. The surcharge ensures that fees reflect the increased cost of supervision that applies to those national banks and federal branches and agencies of foreign banks rated 3, 4, or 5 under the uniform financial institution rating system (UFIRS) or the risk management, operational controls, compliance and asset quality (ROCA) rating system as of the relevant call date (i.e., December 31, 2006, or June 30, 2007). The surcharge is to be applied to all components of an institution's assessment, including book assets, assets under management (for independent trust banks), and receivables attributable (for independent credit card banks). National banks and federal branches and agencies of foreign banks that are subject to the surcharge can calculate their surcharge by multiplying the sum of the assessment based on the institution's book assets up to $20 billion, the independent trust bank assessment (if applicable), and the independent credit card assessment (if applicable) by 50 percent for 3-rated institutions and 100 percent for 4- and 5-rated institutions. The OCC will continue to reduce the assessment of nonlead national banks by 12 percent. A nonlead bank, for this purpose, is a national bank and federal branch or agency that is not the largest national bank, based on total assets, controlled by a company owning two or more national banks. Nonlead national banks within any company should multiply their calculated general assessment by 0.88 to recognize the 12 percent discount. The 12 percent discount does not apply to the independent trust bank assessment or the independent credit card bank assessment, given that independent trust banks and independent credit card banks, by definition, are not affiliated with full-service national banks. Each national bank and federal branch or agency pays the general assessment fee. Independent trust banks pay the general assessment fee and the independent trust bank assessment. Independent credit card banks pay the general assessment fee and the independent credit card bank assessment. Assessments should be calculated using the schedules below and then adjusted for the nonlead discount and/or condition surcharge. General Assessment Fee Schedule If the amount of total balance sheet assets (consolidated domestic and foreign subsidiaries) is: The Semiannual Assessment (millions) will be: Over But Not This Plus Of Excess Over Amount Over (millions) $ 0 $ 2 $ 5,480 0.000000000 $ 0 2 20 5,480 0.000227454 2 20 100 9,574 0.000181963 20 100 200 24,131 0.000118274 100 200 1,000 35,958 0.000100078 200 1,000 2,000 116,020 0.000081883 1,000 2,000 6,000 197,903 0.000072785 2,000 6,000 20,000 489,043 0.000061932 6,000 20,000 40,000 1,356,091 0.000050403 20,000 40,000 2,364,151 0.000033005 40,000 Independent Trust Bank Semiannual Assessment Schedule If the total amount of Fiduciary and Related Assets is: The Independent Trust Bank (millions) Semiannual Assessment will be: Over But Not This Plus Of Excess Over Amount Over (millions) $ 0 $ 1,000 $ 20,815 0.000000000 $ 0 1,000 10,000 20,815 0.000004149 1,000 10,000 100,000 58,156 0.000000695 10,000 100,000 120,706 0.000000442 100,000 Independent Credit Card Bank Semiannual Assessment Schedule The If the bank's total off- Independent balance sheet receivables Credit Card attributable are: Bank (millions) Semiannual Assessment will be: Over But Not Over $ 0 $ 100 $ 44,375 100 1,000 66,300 1,000 5,000 88,750 5,000 110,695 HOURLY RATE FOR EXAMINATIONS AND INVESTIGATIONS Reference: 12 CFR 8.6 Effective date: Examinations and investigations subject to the fee beginning after January 1, 2003. Rate: $110 per hour to recover the cost of conducting special examinations and investigations described in 12 CFR 8.6. LICENSING FEES 1 (Note: numerical endnote numbers follow certain entries. Endnotes 1 through 17 are at end of tables below.) Reference: 12 CFR 5.5 The Licensing Fee Schedule is as follows: 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 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 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 director 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. PUBLICATIONS The OCC has an extensive list of paper-based publications available for a fee, as well as publications available free of charge. For a list of publications and current prices, consult the attached price list. Please note that publication prices are subject to change before the next schedule of fees is published. Copies of an array of items, including news releases, job announcements, issuances (such as bulletins, advisories, and alerts) and other materials may be downloaded free of charge from the agency's Web site at: [http://www.occ.treas.gov]. For your convenience, the site contains a search engine to locate materials by subject. MISCELLANEOUS FEES Prepayment is required for bank histories and certifications. Bank History for single bank: * Less than 50 years $ 50.00 * Fifty years or more $ 125.00 Bank histories are provided to determine the successor to an inactive national bank. They include corporate transactions such as name changes, mergers, closings, and the current address of the successor institution, if available. Certificates relating to licensing bank activities: $ 100.00 * Title Changes * Mergers * Articles of Association * Declaration of Insolvency * Charter * Corporate Existence * Fiduciary Powers Certificate of Authenticity (12 CFR 4) $ 100.00 Copies of certificates $ 10.00 Freedom of Information Act and Privacy Act Requests: * Search and review: per hour $ 35.00 * Photocopying: per page $ 0.20 Examination Reports: * Initial Copy Free * Additional Copies - Each $ 10.00 * Special Requests - Each $ 50.00 /signed/ Thomas R. Bloom Senior Deputy Comptroller for the Office of Management and Chief Financial Officer Attachments: *71 FR 42017 [http://www.occ.treas.gov/fr/fedregister/71fr42017.pdf] *OCC Publications List [http://www.occ.treas.gov/pubs1.htm] *Safety and Soundness [http://www.occ.treas.gov/handbook/ss.htm] *Compliance [http://www.occ.treas.gov/handbook/compliance.htm] *Asset Management [http://www.occ.treas.gov/handbook/amgt.htm] *Comptroller's Licensing Manual [http://www.occ.treas.gov/corpapps/corpapplic.htm] *Description of Publications [http://www.occ.treas.gov/pubscrpt.htm] *Publication Order Form [http://www.occ.treas.gov/publsta.htm]