Partial assessment refunds proposed when banks leave OCC jurisdiction

Federally chartered banks and thrifts that leave the jurisdiction of the Office of the Comptroller of the Currency (OCC) within three months of their Dec. 31 or June 30 call reports would get back part of their next semiannual assessment under an OCC proposed rule.

The proposed rule was approved by Comptroller of the Currency Joseph Otting March 13 and is slated for publication Wednesday in the Federal Register with public comments due in 30 days.

Currently, banks under OCC jurisdiction as of Dec. 31 or June 30 – the dates of the fourth- and second-quarter call reports – are subject to a full assessment for the next six-month assessment period beginning Jan. 1 or July 1; payment is due March 31 or Sept. 30, respectively. The proposal would provide for a refund of the assessments for the second three months of the semiannual assessment period if the institutions leave OCC jurisdiction by the assessment payment due date. For example, if a bank left OCC jurisdiction by March 31, it would be refunded half of the semiannual assessment due on that date.

“The proposed rule is intended to eliminate the requirement that banks prospectively pay 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,” according to the OCC notice of proposed rulemaking.

The measure also makes technical and conforming amendments throughout the agency’s fee assessment regulations.

Reg lookup: Assessment of Fees