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02 - DEPARTMENT OF PROFESSIONAL AND FINANCIAL REGULATION

029 - BUREAU OF FINANCIAL INSTITUTIONS Chapter 141 (Reg. 41)        
                  
ASSESSMENTS ‑ NONDEPOSITORY TRUST COMPANIES, UNINSURED BANKS, AND MERCHANT BANKS

 

SECTION 1:  Summary


In January 2002, the Bureau of Financial Institutions promulgated Regulation 41 setting forth the assessment which must be paid by nondepository trust companies, uninsured banks and merchant banks.  The Regulation also defined fiduciary assets under management, custody or care upon which the assessment is based.  This Regulation was last promulgated in 2004 to provide for the transition from annual to quarterly assessments. The Regulation is being amended to replace dated assessment that had been, or will be, paid by nondepository trust companies, uninsured banks, and merchant banks until December 31, 2008 and to establish the quarterly assessment required beginning with the calendar quarter ending March 31, 2009.  Its anticipated effective date is January 1, 2009.   It is a routine technical rule as defined in 5 M.R.S.A. § 8071(2)(A).

I.          AUTHORITY

Title 9‑B MRSA §214(2‑B) authorizes the Superintendent of the Bureau of Financial Institutions to define by rule fiduciary assets under management, custody or care and to set the rate of assessment.  

            Title 9‑B MRSA §214(2‑C) requires an uninsured bank or merchant bank that predominately engages in the business of a nondepository trust company to pay an assessment at the same rate as charged to a nondepository trust company. An uninsured bank or merchant bank that does not predominately engage in the business of a nondepository trust company must pay a quarterly assessment as prescribed in Title 9‑B MRSA §214(2).

            Title 9‑B MRSA §215 authorizes the Superintendent to promulgate rules relating to the supervision of financial institutions or their subsidiaries.

II.        PURPOSE

            This amendment deletes dated assessments that had been, or will be, paid by nondepository trust companies, uninsured banks, and merchant banks until December 31, 2008 and establishes the quarterly assessments paid by those institutions beginning with the assessment for the calendar quarter ending March 31, 2009.

III.       DEFINITIONS

            For purposes of this regulation, the following terms have the following meanings:

  1. “Assets subject to assessment” means the    monthly total of fiduciary assets under management, custody, or care   averaged for the three months in that calendar quarter.
  2. “Calendar quarter” means a period of three consecutive calendar months ending on March 31, June 30, September 30, or December 31.           
  3. "Fiduciary assets under management, custody or care" means those items reported as Managed Assets, Non-Managed Assets and Custody and Safekeeping Account Assets on the institution’s Report of Fiduciary and Related Services (currently FFIEC Schedule RC-T).
  4. "Financial institution" has the same meaning as Title 9‑B MRSA §131(17).
  5. "Merchant bank" means a financial institution that is organized under the provisions of Title 9‑B MRSA Chapter 122.
  6. “Nondepository trust company" means a financial institution that is organized under the provisions of Title 9‑B MRSA Chapter 121.
  7. "Predominately engaged in the business of a nondepository trust company" means that the sum of fiduciary assets under management, custody or care held by an uninsured bank or merchant bank, as reported on its quarterly Report of Fiduciary and Related Services (currently FFIEC Schedule RC-T), is greater than the total assets of the uninsured bank or merchant bank as reported on its quarterly Balance Sheet filed with the Bureau of Financial Institutions.
  8. "Uninsured bank" means a financial institution that is organized under the provisions of Title 9‑B MRSA Chapter 123.

 

IV.       GENERAL PROVISIONS

    1. Beginning with the assessment for the calendar quarter ending March 31, 2009 and quarterly thereafter, each nondepository trust company, uninsured bank and merchant bank shall pay an assessment to the Bureau of Financial Institutions as follows:
      1. Each nondepository trust company shall pay an assessment which shall be the greater of (a) $500 or (b) 2.5¢ for every $10,000 of the assets subject to assessment.
      2. Each uninsured bank and merchant bank that predominately engages in the business of a nondepository trust company shall pay an assessment which shall be the greater of (a) $500 or (b) 2.5¢ for every $10,000 of the assets subject to assessment.
      3. Each uninsured bank and merchant bank that does not predominately engage in the business of a nondepository trust company shall pay an assessment  calculated in accordance with Title 9-B MRSA §214(2)(A) and any rules promulgated thereunder.
    2. Beginning with the assessment for the calendar quarter ending March 31, 2010 and quarterly thereafter, each nondepository trust company, uninsured bank and merchant bank shall pay an assessment to the Bureau of Financial Institutions as follows:
      1. Each nondepository trust company shall pay an assessment which shall be the greater of (a) $500 or (b) 3.0¢ for every $10,000 of the assets subject to assessment.
      2. Each uninsured bank and merchant bank that predominately engages in the business of a nondepository trust company shall pay an assessment which shall be the greater of (a) $500 or (b) 3.0¢ for every $10,000 of the assets subject to assessment.
      3. Each uninsured bank and merchant bank that does not predominately engage in the business of a nondepository trust company shall pay an assessment  calculated in accordance with Title 9-B MRSA §214(2)(A) and any rules promulgated thereunder.
    3. Each nondepository trust company, uninsured bank, and merchant bank shall file, in the manner required by the Bureau of Financial Institutions, a report that fully provides information in support of any assessment being paid.

 

STATUTORY AUTHORITY: 9-B MRSA §§ 214(2-B), 214(2-C) and 215

BASIS STATEMENT:  This Regulation was promulgated to establish the assessments paid by nondepository trust companies, uninsured banks, and merchant banks and provide for the transition from annual to quarterly payment of assessments.  It is amended to increase the assessments that are to be paid by nondepository trust companies, because those assessments are presently inadequate in light of present economic conditions to fulfill the purposes of 9-B M.R.S.A. § 214.  It is also amended to delete dated assessments that had been, or will be, paid by nondepository trust companies, uninsured banks and merchant banks until December 31, 2008, and to establish the quarterly assessments paid by nondepository trust companies, uninsured banks, and merchant banks beginning with the assessment for the calendar quarter ending March 31, 2009.  Notice of proposed rulemaking was published on September 17, 2008.  No public hearing was requested and none was held.  The Bureau received no comments during the public comment period which closed on October 17, 2008.  Therefore, the regulation is being promulgated as proposed.

EFFECTIVE DATE:  January 1, 2009

Last Updated: June 5, 2013