Appeal of Semiannual Assessment Fee - (Third Quarter 2005)

Background

A bank formally appealed the OCC's right to retain the full semiannual assessment fee for the pe­riod of January 1 through June 30 since the bank converted to a state chartered commercial bank on January 1.

Discussion

The bank requested a full refund of its semiannual assessment because the supervisory respon­sibility shifted from the OCC to the state on January 1 and therefore no supervisory activities would be conducted by the OCC during the period covered by the assessment.

The ombudsman reviewed OCC regulations regarding payment of semiannual assessment fees.  According to paragraph (5) under section (a) of 12 CFR 8 Assessment of Fees, "Each bank subject to the jurisdiction of the Comptroller of the Currency on the date of the second or fourth quarterly Call Report required by the OCC under 12 USC 161 is subject to the full assessment for the next six-month period."  The OCC assessment is levied against all institutions that are in the national banking system as of December 31st and June 30th.  Therefore, any bank that is a nation­al bank on the assessment date is required to pay the full semiannual assessment for the upcoming six-month period.

Conclusion

After careful review of OCC regulations, and finding no basis for an exception, the ombudsman determined that no refund was due to the bank.