Assessment of Fees
| Citation | 84 FR 43475 |
| Record Number | 2019-17535 |
| Published date | 21 August 2019 |
| Section | Rules and Regulations |
| Court | The Comptroller Of The Currency Office |
Federal Register, Volume 84 Issue 162 (Wednesday, August 21, 2019)
[Federal Register Volume 84, Number 162 (Wednesday, August 21, 2019)]
[Rules and Regulations]
[Pages 43475-43479]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-17535]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 84, No. 162 / Wednesday, August 21, 2019 /
Rules and Regulations
[[Page 43475]]
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR Part 8
[Docket No. OCC-2018-0039]
RIN 1557-AE58
Assessment of Fees
AGENCY: Office of the Comptroller of the Currency, Treasury.
ACTION: Final rule.
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SUMMARY: The Office of the Comptroller of the Currency (OCC) is
adopting a final rule to revise its assessment rule to provide partial
assessment refunds to national banks, Federal savings associations, and
Federal branches and agencies of foreign banks (collectively, banks
under the jurisdiction of the OCC) that exit the OCC's jurisdiction
within the first half of each six-month period beginning the day after
the date of the second or fourth quarterly Consolidated Report of
Condition and Income (Call Report). The final rule will not change the
current payment due dates for assessments nor will it change the way
assessments are calculated for banks that remain under the OCC's
jurisdiction. The final rule will also make technical changes to the
assessments rules.
DATES: Effective September 20, 2019.
FOR FURTHER INFORMATION CONTACT: Deborah Thomas, AT Team Lead,
Financial Management, (202) 649-5540; or Mitchell Plave, Special
Counsel, Chief Counsel's Office, (202) 649-5490; or for persons who are
deaf or hearing impaired, TTY, (202) 649-5597, 400 7th Street SW,
Washington, DC 20219.
SUPPLEMENTARY INFORMATION:
I. Background
The National Bank Act \1\ and the Home Owners' Loan Act \2\
authorize the Comptroller to fund the OCC's operations through
assessments, fees, and other charges on banks under the jurisdiction of
the OCC.\3\ In setting assessments, the Comptroller has broad authority
to consider variations among institutions, including the nature and
scope of the activities of the entity, the amount and type of assets
that the entity holds, the financial and managerial condition of the
entity, and any other factor the Comptroller determines is
appropriate.\4\
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\1\ Revised Statutes of the United States, Title LXII, 12 U.S.C.
1 et seq.
\2\ The Home Owners' Loan Act, 12 U.S.C. 1461 et seq.
\3\ 12 U.S.C. 16, 481, 482, 1467.
\4\ 12 U.S.C. 16. See also 12 U.S.C. 1467 (providing that the
Comptroller has the authority to recover costs of examination of
Federal savings associations ``as the Comptroller deems necessary or
appropriate'').
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The OCC collects assessments from banks under its jurisdiction in
accordance with 12 CFR part 8. Under part 8, the base assessment for
banks is calculated using a table with eleven categories, or brackets,
each of which comprises a range of asset-size values. The assessment
for each bank is the sum of a base amount, which is the same for every
bank in its asset-size bracket, plus a marginal amount, which is
computed by applying a marginal assessment rate to the amount in excess
of the lower boundary of the asset-size bracket.\5\ The marginal
assessment rate declines as asset size increases, reflecting economies
of scale in bank examination and supervision.
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\5\ 12 CFR 8.2(a). Only the total domestic assets of Federal
branches and agencies are subject to assessment. 12 CFR 8.2(b)(2).
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The OCC's annual Notice of Office of the Comptroller of the
Currency Fees and Assessments (Notice of Fees) sets forth the marginal
assessment rates applicable to each asset-size bracket for each year,
as well as other assessment components and fees. Under part 8, the OCC
may adjust the marginal rates to account for inflation through the
annual Notice of Fees.\6\ The OCC also has the discretion under part 8
to adjust marginal rates by amounts other than inflation.\7\ The OCC
may issue an interim or amended Notice of Fees if the Comptroller
determines that it is necessary to revise assessments to meet the OCC's
supervisory obligations.\8\
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\6\ 12 CFR 8.2(a)(4).
\7\ Id.
\8\ 12 CFR 8.8(b).
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Under 12 CFR 8.2, the OCC collects assessments on a semiannual
basis, with fees due by March 31 and September 30 (payment due dates)
of each year for the six-month period beginning on January 1 and July 1
before each payment due date.\9\ Under this schedule, banks under the
jurisdiction of the OCC pay half of the semiannual assessment
prospectively and half retrospectively. This schedule for collection of
assessments was adopted in 2005 when the OCC issued a rule to
streamline the assessments billing process.\10\ Between 1976, when the
OCC adopted the marginal assessments structure, and 2005, the OCC
collected assessments prospectively for five months and retrospectively
for one month.\11\
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\9\ 12 CFR 8.2(a) and (b)(1).
\10\ 70 FR 69641 (Nov. 17, 2005).
\11\ 41 FR 3284 (Jan. 22, 1976).
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Under current 12 CFR 8.2(a)(5) and (b)(3), each bank under the
jurisdiction of the OCC on the date of the second or fourth quarterly
Call Report is subject to the full assessment for the next six-month
period. As noted in the Notice of Fees for 2018,\12\ only those
institutions leaving OCC jurisdiction before the close of business on
the date of the second or fourth quarterly Call Report avoid paying the
semiannual assessment for the period beginning January 1 or July 1, as
applicable.
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\12\ See OCC Bulletin 2017-60 (Office the Comptroller of the
Currency Fees and Assessments).
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II. Description of the Proposed Rule and Comments Received
Assessment Refunds
The OCC published a proposed rule in the Federal Register on March
20, 2019, to amend 12 CFR part 8 to provide partial assessment refunds
to banks that exit the jurisdiction of the OCC within the first half of
each six-month period beginning the day after the date of the second or
fourth quarterly Call Report.\13\ Under the current assessments
structure, banks that are subject to the jurisdiction of the OCC on the
date of the second or fourth quarterly Call Report (December 31 or June
30) are subject to the full assessment for the next six-month period
beginning January 1 or July 1, with payment due
[[Page 43476]]
March 31 or September 30, as appropriate.\14\ Under the proposed rule,
banks that leave OCC jurisdiction by the date of the first or third
quarterly Call Report, which coincides with the appropriate payment due
date, would receive a refund of assessments for the second three months
of the semiannual assessment period. For example, a bank that was
subject to the jurisdiction of the OCC as of December 31, the date of
the fourth quarterly Call Report, would receive a refund of assessments
for the second three months of the semiannual assessment period
beginning January 1 if it leaves the OCC's jurisdiction by March 31,
the date of the first quarterly Call Report.
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\13\ 84 FR 10270 (March 20, 2019).
\14\ 12 CFR 8.2(a) and (b).
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The proposed rule was intended to eliminate the requirement that
banks pay prospectively for one half of each assessment period after
they no longer are subject to the jurisdiction of the OCC by setting
the refund equal to the prospective portion of the assessment. Under
the current rule, the payment due date effectively divides each six-
month period into two three-month periods, and a bank subject to the
jurisdiction of the OCC on the date of the applicable Call Report
(December 31 or June 30) must pay the full assessment on the payment
due date of the semiannual assessment (March 31 and September 30) even
if it has left OCC jurisdiction by that date. This structure can result
in banks prospectively paying assessment fees for three-month periods
during which they are not subject to the jurisdiction of the OCC at any
time. Under the proposed rule, the payment due date continues to divide
each six-month period into two three-month periods. However, a bank
that leaves the OCC's jurisdiction after the fourth quarterly Call
Report (December 31), but before the date of the first quarterly Call
Report (March 31), would not be obligated to pay for the second half of
that semiannual assessment period. Similarly, a bank that leaves the
OCC's jurisdiction after the second quarterly Call Report (June 30),
but before the date of the third quarterly Call Report (September 30)
would also not be obligated to pay for the second half of that
semiannual assessment period. In doing so, the proposed rule would
assess a bank to cover only the relevant three-month period during
which it was subject to the jurisdiction of the OCC.
Technical and Conforming Amendments
The proposed rule also included technical and conforming
amendments. These were intended to reduce ambiguity and make
terminology consistent throughout 12 CFR part 8. The first proposed
change would amend Sec. Sec. 8.2(d) and 8.6(c)(1)(iii) concerning the
condition surcharge to replace the phrase ``at its most recent
examination'' with the phrase ``prior to December 31 or June 30, as
appropriate.'' This change would clarify that the condition surcharge
is calculated in tandem with the OCC's calculation of other assessment
components based on Call Report information as of December 31 and June
30 of each year.\15\ This amendment to the rule would not change the
OCC's current practice of calculating a bank's surcharge as of its most
recent ratings prior to December 31 or June 30, as appropriate. Under
this policy, surcharges are neither raised nor lowered between December
31 and June 30, as appropriate, and the payment due dates of March 31
and September 30, as appropriate.
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\15\ See OCC Bulletin 2017-60 (Office the Comptroller of the
Currency Fees and Assessments) (describing the process for
calculating assessments).
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The second proposed technical change would make several revisions
to 12 CFR 8.7 concerning interest on delinquent assessments and fees
and refunds in the case of an error or miscalculation of assessments or
fees. First, it would add the prefatory clause, ``Within 30 calendar
days of receipt of such notice, the OCC shall either--'' at Sec.
8.7(b)(1). This clause was originally included at Sec. 8.7(b) as
introductory text and was inadvertently deleted in connection with a
prior rulemaking. Restoring it would clarify the OCC's obligations
under Sec. 8.7(b). This change would also redesignate the current
Sec. 8.7(b)(1) and (2) as Sec. 8.7(b)(1)(i) and (ii), respectively.
In addition, the proposed rule would redesignate the current Sec.
8.7(b) concluding text as Sec. 8.7(b)(2). Finally, the proposed rule
would simplify the language used in Sec. 8.7(a) and (b) and clarify
that provisions dealing with special examination or investigation fees
apply to any institution subject to a special examination or
investigation. These amendments would not change the OCC's current
policy of considering assessment payments delinquent if received after
the time for payment specified in 12 CFR 8.2; considering special
examination and investigation fees delinquent if not received within 30
calendar days of the invoice date; requiring interest on delinquent
payments and fees; and providing either a refund or notice of its
unwillingness to accept a refund request within 30 calendar days of
receipt of a request.
The proposed rule would also conform all references to the ``Office
of the Comptroller of the Currency,'' ``Comptroller of the Currency,''
or ``Office'' to ``OCC,'' except with respect to references to the
Notice of Fees; conform all references to ``Notice of Comptroller of
the Currency Fees'' or ``Notice of Comptroller of the Currency of
Fees'' to ``Notice of Office of the Comptroller of the Currency Fees
and Assessments''; add hyphens to all compound modifiers where a hyphen
is not currently used; remove references to ``Thrift Financial
Reports,'' which are no longer used; remove a duplicate reference to
``Uniform Financial Institutions Rating System'' in 12 CFR
8.6(c)(1)(iii); remove a duplicate and unnecessary citation to
authority in 12 CFR 8.6(a); replace an incorrect reference to ``each
national bank'' with a reference to ``each Federal branch and agency''
in 12 CFR 8.2(b)(1); add the modifier ``national'' to references to
banks and terms, such as ``independent credit card banks,'' as
appropriate; add the term ``independent trust'' before references to
banks and Federal savings associations in 12 CFR 8.6(c)(1)(iii) and add
a reference to independent trust Federal savings associations where the
provision currently only refers to banks; and add conforming references
to Federal branches and agencies, as necessary.
Comments on the Proposed Rule
The OCC received one comment on the proposed rule. The commenter, a
trade association for banks, supported the proposed rule, stating that
it would improve the fairness of the assessments process and
appropriately refine the scope of fees and charges for banks under the
jurisdiction of the OCC. In the commenter's opinion, the proposal would
also improve the ability of banks to serve their customers and
communities.
III. Description of the Final Rule
The final rule adopts the assessment refund process presented in
the proposed rule without change. Under the final rule, banks that exit
the jurisdiction of the OCC within the first half of each six-month
period beginning the day after the date of the second or fourth
quarterly Call Report will receive a refund equal to the prospective
portion of the assessment. This change will prevent banks that exit the
OCC's jurisdiction from paying assessment fees for the three-month
periods during which they are not subject to the OCC's jurisdiction at
any time. This change will not affect current payment due
[[Page 43477]]
dates or the manner in which assessments are calculated.
The final rule adopts the technical and conforming amendments in
the proposed rule without substantive change. These amendments will
reduce ambiguity and make terminology consistent throughout part 8. The
final rule also makes a technical correction to the text of the
proposed rule. This correction revises proposed 12 CFR 8.2(a)(5) and
(b)(3) by substituting ``first'' and ``third'' for ``second'' and
``fourth,'' as appropriate, to reflect the new proposed refund policy.
This technical correction does not substantively change the partial
refund process as proposed and is consistent with the description of
the refund policy in the preamble to the proposed rule. The final rule
also makes a technical correction to the proposed rule's prefatory
clause at Sec. 8.7(b)(1) by removing the word ``notice'' and replacing
it with the word ``request.'' This is a nonsubstantive change that
aligns the wording with the phraseology in Sec. 8.7(b).
Regulatory Analysis
Paperwork Reduction Act of 1995
In accordance with the Paperwork Reduction Act of 1995 (PRA) (44
U.S.C. 3501 et seq.) the OCC may not conduct or sponsor, and an
organization is not required to respond to, an information collection
unless the information collection displays a currently valid Office of
Management and Budget (OMB) control number. This final rule does not
contain a collection of information under the PRA.
Regulatory Flexibility Act
In general, the Regulatory Flexibility Act (RFA) (5 U.S.C. 601 et
seq.) requires that in connection with a rulemaking, an agency prepare
and make available for public comment a regulatory flexibility analysis
that describes the impact of the rule on small entities. Under section
605(b) of the RFA, this analysis is not required if an agency certifies
that the rule will not have a significant economic impact on a
substantial number of small entities and publishes its certification
and a brief explanatory statement in the Federal Register along with
its rule.
The OCC currently supervises approximately 886 small entities.\16\
Although the number of OCC-supervised small banks affected will vary
each year, the OCC does not expect that the final rule will affect a
substantial number (generally defined as five percent or more of OCC-
supervised small entities) in any given year, based on the OCC's
experience with departures from the charters in recent years. For
example, had the final rule applied in 2018, the OCC would have
refunded assessments totaling $579,000 to 22 banks, 19 of which were
small banks (approximately two percent of OCC-supervised small
entities). Similarly, if the final rule had applied in 2017, the OCC
would have refunded assessments totaling $663,000 to 16 banks, 12 of
which were small banks; in 2016, the OCC would have refunded
assessments totaling $392,000 to 26 banks, all of which were small
banks; and in 2015, the OCC would have refunded assessments totaling
$555,000 to 29 banks, 27 of which were small banks. In each of these
years, the number of institutions that would have been affected by the
final rule was less than five percent of OCC-supervised small entities.
Therefore, the final rule would not have affected a substantial number
of small entities during these years.
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\16\ The OCC bases its estimate of the number of small entities
on the SBA's size thresholds for commercial banks and savings
institutions, and trust companies, which are $550 million and $38.5
million, respectively. Consistent with the General Principles of
Affiliation in 13 CFR 121.103(a), the OCC counts the assets of
affiliated financial institutions when determining if we should
classify an OCC-supervised institution as a small entity. The OCC
uses December 31, 2017, to represent size because a ``financial
institution's assets are determined by averaging the assets reported
on its four quarterly financial statements for the preceding year.''
See footnote 8 of the U.S. Small Business Administration's Table of
Size Standards.
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The OCC also considered whether the final rule will result in a
significant economic impact on small entities. In general, the OCC
classifies the economic impact of expected cost (or benefit) to comply
with a rule on an individual bank as significant if the total estimated
monetized costs (or benefits) in one year are greater than 5 percent of
the bank's total annual salaries and benefits or 2.5 percent of the
bank's total annual non-interest expense. Based on the above criteria,
and the refund amounts for the years 2015 through 2018 outlined above,
the OCC estimates that impact of the final rule, had it been in place
for 2015-2018, would not have had a significant economic impact at any
of the affected institutions.
Based on the data and experience of the OCC in recent years with
departures from the charters, the OCC certifies that the final rule
will not have a significant economic impact on a substantial number of
small entities.
Unfunded Mandates Reform Act of 1995
The OCC analyzed the final rule under the factors set forth in the
Unfunded Mandates Reform Act of 1995 (UMRA) (2 U.S.C. 1532). Under this
analysis, the OCC considered whether the final rule includes a Federal
mandate that may result in the expenditure by State, local, and Tribal
governments, in the aggregate, or by the private sector, of $100
million or more in any one year (adjusted for inflation). The OCC has
determined that the final rule will not impose new mandates and,
therefore, will not result in the expenditure of $100 million or more
annually by state, local, and tribal governments, or by the private
sector.
Riegle Community Development and Regulatory Improvement Act of 1994
Section 302 of the Riegle Community Development and Regulatory
Improvement Act of 1994 (RCDRIA) (12 U.S.C. 4802) requires that each
Federal banking agency, in determining the effective date and
administrative compliance requirements for new regulations that impose
additional reporting, disclosure, or other requirements on insured
depository institutions (IDIs), consider, consistent with principles of
safety and soundness and the public interest, any administrative
burdens that such regulations would place on depository institutions,
including small depository institutions, and customers of depository
institutions, as well as the benefits of such regulations.\17\ In
addition, new regulations and amendments to regulations that impose
additional reporting, disclosures, or other new requirements on IDIs
generally must take effect on the first day of a calendar quarter that
begins on or after the date on which the regulations are published in
final form.\18\
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\17\ 12 U.S.C. 4802(a).
\18\ 12 U.S.C. 4802(b).
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Because the final rule does not impose additional reporting,
disclosure, or other requirements on IDIs, section 302 of RCDRIA does
not apply. Nevertheless, the requirements of section 302 RCDRIA, and
the administrative burdens and benefits of the final rule, were
considered as part of the overall rulemaking process.
The Congressional Review Act
Pursuant to the Congressional Review Act, the Office of Management
and Budget's Office of Information and Regulatory Affairs designated
this rule as not a ``major rule'', as defined at 5 U.S.C. 804(2).
[[Page 43478]]
List of Subjects in 12 CFR Part 8
Assessments, Federal branches and agencies, National banks,
Reporting and recordkeeping requirements, Savings associations.
Authority and Issuance
For the reasons set forth in the preamble, chapter I of title 12 of
the Code of Federal Regulations is amended as follows:
PART 8--ASSESSMENT OF FEES
0
1. The authority for part 8 continues to read as follows:
Authority: 12 U.S.C. 16, 93a, 481, 482, 1467, 1831c, 1867, 3102,
3108, and 5412(b)(2)(B); and 15 U.S.C. 78c and 78l.
0
2. Section 8.2 is amended by:
0
a. Adding a heading and revising the first column heading for the table
in paragraph (a);
0
b. Removing ``the bank's'' and adding ``the national bank's'' in its
place in paragraphs (a)(3) and (c)(3)(iii) and (viii);
0
c. Removing ``A bank's'' and adding ``A national bank's'' in its place
in paragraph (a)(1);
0
d. Removing ``the bank'' and adding ``the national bank'' in its place
in paragraphs (a)(1) and (2) and (c)(1) and (2);
0
e. Removing ``Comptroller of the Currency'' and adding ``OCC'' in its
place in paragraphs (a) introductory text and (b)(1);
0
f. Revising paragraph (a)(5);
0
g. Removing ``non-lead bank'' and adding ``non-lead national bank'' in
its place in paragraph (a)(6)(i);
0
h. Removing ``Notice of Comptroller of the Currency Fees'' and adding
``Notice of Office of the Comptroller of the Currency Fees and
Assessments'' in its place in paragraphs (a)(6)(i) and (b)(4)(i);
0
i. Removing ``Lead bank'' and adding ``Lead national bank'' in its
place, removing ``each bank's'' and adding ``each national bank's'' in
its place, and removing ``or Thrift Financial Report, as appropriate,''
in paragraph (a)(6)(ii)(A);
0
j. Removing ``Non-lead bank'' and adding ``Non-lead national bank'' in
its place and removing ``lead bank'' and adding ``lead national bank''
in its place in paragraph (a)(6)(ii)(B);
0
k. Removing ``six month'' and adding ``six-month'' in its place and
removing ``national bank'' and adding ``Federal branch and agency'' in
its place in paragraph (b)(1);
0
l. Revising paragraph (b)(3);
0
m. Removing ``Federal branch or agency'' and adding ``Federal branch
and agency'' in its place in paragraph (b)(4)(i);
0
n. Removing ``independent credit card banks'' and adding ``independent
credit card national banks'' in its place in paragraph (c) heading;
0
o. Removing ``Notice of Comptroller of the Currency of Fees'' and
adding ``Notice of Office of the Comptroller of the Currency Fees and
Assessments'' in its place in paragraph (c)(1);
0
p. Removing ``independent credit card bank'' and adding ``independent
credit card national bank'' in its place in paragraphs (c)(1) and (2)
and (c)(3)(viii);
0
q. Removing ``Independent credit card banks'' and adding in its place
``Independent credit card national banks'' and removing ``full
service'' and adding ``full-service'' in its place in paragraph (c)(2);
0
r. Removing ``or a bank'' and adding ``or a national bank'' in its
place in paragraph (c)(3)(iii);
0
s. Removing ``Independent credit card bank'' and adding ``Independent
credit card national bank'' in its place in paragraph (c)(3)(vi);
0
t. Removing ``Independent credit card banks'' and adding ``Independent
credit card national banks'' in its place in paragraph (c)(4); and
0
u. Revising paragraph (d).
The revisions read as follows:
Sec. 8.2 Semiannual assessment.
(a) * * *
Table 1 to Paragraph (a)
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If the national bank's or Federal
savings association's total assets
(consolidated domestic and foreign * * * * * * *
subsidiaries) are:
------------------------------------------------------------------------
* * * * * * *
------------------------------------------------------------------------
* * * * *
(5) The specific marginal rates and complete assessment schedule
will be published in the ``Notice of Office of the Comptroller of the
Currency Fees and Assessments,'' provided for at Sec. 8.8. Each
semiannual assessment is based upon the total assets shown in the
national bank's or Federal savings association's most recent
``Consolidated Reports of Condition and Income'' (Call Report)
preceding the payment date. Each national bank or Federal savings
association subject to the jurisdiction of the OCC on the date of the
second or fourth quarterly Call Report as appropriate, required by the
OCC under 12 U.S.C. 161 and 12 U.S.C. 1464(v), is subject to the full
assessment for the next six-month period. National banks and Federal
savings associations that are no longer subject to the jurisdiction of
the OCC as of the date of the first or third quarterly Call Report, as
appropriate, will receive a refund of assessments for the second three
months of the semiannual assessment period.
* * * * *
(b) * * *
(3) Each semiannual assessment of each Federal branch and each
agency is based upon the total assets shown in the Federal branch's or
agency's Call Report most recently preceding the payment date. Each
Federal branch or agency subject to the jurisdiction of the OCC on the
date of the second and fourth Call Reports is subject to the full
assessment for the next six-month period. Federal branches and agencies
that are no longer subject to the jurisdiction of the OCC as of the
date of the first or third quarterly Call Report, as appropriate, will
receive a refund of assessments for the second three months of the
semiannual assessment period.
* * * * *
(d) Surcharge based on the condition of the national bank, Federal
savings association, or Federal branch or agency. Subject to any limit
that the OCC prescribes in the ``Notice of Office of the Comptroller of
the Currency Fees and Assessments,'' the OCC shall apply a surcharge to
the semiannual assessment computed in accordance with paragraphs (a)
through (c) of this section. This surcharge will be determined by
multiplying the semiannual assessment computed in accordance with
paragraphs (a) through (c) of this section by--
(1) 1.5, in the case of any national bank or Federal savings
association that receives a composite rating of 3 under the Uniform
Financial Institutions Rating System (UFIRS) and any Federal branch or
agency that receives a composite rating of 3 under the ROCA rating
system (which rates risk management, operational controls,
[[Page 43479]]
compliance, and asset quality) at its most recent examination prior to
December 31 or June 30, as appropriate; and
(2) 2.0, in the case of any national bank or Federal savings
association that receives a composite UFIRS rating of 4 or 5 and any
Federal branch or agency that receives a composite rating of 4 or 5
under the ROCA rating system at its most recent examination prior to
December 31 or June 30, as appropriate.
0
3. Section 8.6 is amended by:
0
a. Revising paragraphs (a) introductory text and (a)(1) and (3);
0
b. Removing ``Notice of Comptroller of the Currency fees'' and adding
``Notice of Office of the Comptroller of the Currency Fees and
Assessments'' in its place in paragraph (b);
0
c. Removing ``Notice of Comptroller of the Currency Fees'' and adding
``Notice of Office of the Comptroller of the Currency Fees and
Assessments'' in its place in paragraphs (b), (c)(1)(i) and (ii), and
(c)(3)(vii);
0
d. Removing ``trust banks'' and adding ``trust national banks'' in its
place in paragraph (c) heading;
0
e. Removing ``Independent trust banks'' and ``independent trust banks''
wherever they appear and adding ``Independent trust national banks''
and ``independent trust national banks'' in their place, respectively,
in paragraph (c)(1);
0
f. Revising paragraph (c)(1)(iii);
0
g. Removing ``Trust banks'' and adding ``Trust national banks'' in its
place, removing ``trust bank'' and adding ``trust national bank'' in
its place, and removing ``the bank'' and adding ``the national bank''
in its place in paragraph (c)(2); and
0
h. Removing ``Independent trust bank'' and adding ``Independent trust
national bank'' in its place in paragraph (c)(3)(v).
The revisions read as follows:
Sec. 8.6 Fees for special examinations and investigations.
(a) Fees. The OCC may assess a fee for:
(1) Examining the fiduciary activities of national banks, Federal
branches of foreign banks, and Federal savings associations and related
entities;
* * * * *
(3) Conducting special examinations and investigations of an entity
with respect to its performance of activities described in section 7(c)
of the Bank Service Company Act (12 U.S.C. 1867(c)) if the OCC
determines that assessment of the fee is warranted with regard to a
particular national bank, Federal branch or agency of a foreign bank,
or Federal savings association because of the high risk or unusual
nature of the activities performed; the significance to the national
bank's, Federal branch's or agency's, or Federal saving association's
operations and income of the activities performed; or the extent to
which the national bank, Federal branch or agency, or Federal savings
association has sufficient systems, controls, and personnel to
adequately monitor, measure, and control risks arising from such
activities;
* * * * *
(c) * * *
(1) * * *
(iii) Surcharge based on the condition of the independent trust
national bank or of the independent trust Federal savings association.
Subject to any limit that the OCC prescribes in the ``Notice of Office
of the Comptroller of the Currency Fees and Assessments,'' the OCC
shall adjust the semiannual assessment computed in accordance with
paragraphs (c)(1)(i) and (ii) of this section by multiplying that
figure by 1.5 for each independent trust national bank and independent
trust Federal savings association that receives a composite UFIRS
rating of 3 at its most recent examination prior to December 31 or June
30, as appropriate, and by 2.0 for each independent trust national bank
and independent trust Federal savings association that receives a
composite UFIRS rating of 4 or 5 at such examination.
* * * * *
0
4. Section 8.7 is amended by revising paragraphs (a) and (b) and
removing the undesignated paragraph following paragraph (b) to read as
follows:
Sec. 8.7 Payment of interest on delinquent assessments and
examination and investigation fees.
(a) Each national bank, Federal savings association, Federal
branch, and Federal agency shall pay to the OCC interest on its
delinquent payments of semiannual assessments. In addition, each
institution subject to a special examination or investigation fee shall
pay to the OCC interest on its delinquent payments of special
examination and investigation fees. Semiannual assessment payments will
be considered delinquent if they are received after the time for
payment specified in Sec. 8.2. Special examination and investigation
fees will be considered delinquent if not received by the OCC within 30
calendar days of the invoice date.
(b) In the event that an institution believes that the notice of
assessments or special examination and investigation fees contains an
error or miscalculation, the institution may provide the OCC with a
written request for a revised notice and a refund of any overpayments.
Any such request for a revised notice and refund must be made after
timely payment of the semiannual assessment under the dates specified
in Sec. 8.2 or timely payment of the special examination and
investigation fee within 30 calendar days of the invoice date.
(1) Within 30 calendar days of receipt of such request, the OCC
shall either--
(i) Refund the amount of the overpayment; or
(ii) Provide notice of its unwillingness to accept the request for
a revised notice of assessments. In the latter instance, the OCC and
the entity claiming the overpayment shall thereafter attempt to reach
agreement on the amount, if any, to be refunded; the OCC shall refund
this amount within 30 calendar days of such agreement.
(2) The OCC shall be considered delinquent if it fails to return an
overpayment in accordance with the time limitations specified in this
paragraph (b). The OCC shall pay interest on any such delinquent
payments.
* * * * *
0
5. Section 8.8 is amended by revising the section heading and paragraph
(b) to read as follows:
Sec. 8.8 Notice of Office of the Comptroller of the Currency fees
and assessments.
* * * * *
(b) Interim and amended notice of fees. The OCC may issue a
``Notice of Interim Office of the Comptroller of the Currency Fees and
Assessments'' or a ``Notice of Amended Office of the Comptroller of the
Currency Fees and Assessments'' from time to time throughout the year
as necessary. Interim or amended notices will be effective 30 days
after issuance.
Dated: August 5, 2019.
Joseph M. Otting,
Comptroller of the Currency.
[FR Doc. 2019-17535 Filed 8-20-19; 8:45 am]
BILLING CODE 4810-33-P
