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Maine.gov > PFR Home > Bureau of Financial Institutions > Regulations > Regulation # 41

02-029
Chapter 141
Reg. # 41
ASSESSMENTS ‑ NONDEPOSITORY TRUST COMPANIES, UNINSURED BANKS, AND MERCHANT

BANKS

SUMMARY

In January 2002, the Bureau of Financial Institutions promulgated Chapter 141 (Regulation 41). That rule set forth the assessment which must be paid by nondepository trust companies, uninsured banks and merchant banks. That rule also defined fiduciary assets under management, custody or care upon which the assessment is based. Public Law 2003, c.322 amended the statute governing assessments paid by nondepository trust companies, uninsured banks, and merchant banks to the Bureau of Financial Institutions and changed the frequency of assessment payment from annually to quarterly. Public Law 2003, c.322 did not change the minimum assessment rate or the type of assets upon which an assessment is based, nor did it provide for a statutory transition for payment of assessments from the annual to quarterly frequency. This regulation is being promulgated to provide for the transition from annual to quarterly assessments paid to the Bureau of Financial Institutions by nondepository trust companies, uninsured banks, and merchant banks. It is a routine technical rule as defined in Title 5, chapter 375, subchapter II‑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 regulation repeals and replaces Regulation 41 that was issued in January 2002. This regulation is being promulgated to provide for the transition to quarterly payment of assessments to the Bureau of Financial Institutions by nondepository trust companies, uninsured banks, and merchant banks.

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 FFEIC 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 FFEIC 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. For the period beginning January 1, 2003 and ending December 31, 2003, each nondepository trust company, uninsured bank and merchant bank shall pay assessments to the Bureau of Financial Institutions as follows:
    1. For each calendar quarter of 2003, a nondepository trust company shall pay an assessment which shall be the greater of (1) $500 or (2) 1.5% of every $10,000 of assets subject to assessment.
    2. For each calendar quarter of 2003, an 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 (1) $500 or (2) 1.5% of every $10,000 of assets subject to assessment.
    3. For each calendar quarter of 2003, an 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, 2004, 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 (1) $500 or (2) 1.5% of 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 (1) $500 or (2) 1.5% of 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 is being 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. Notice of proposed rulemaking was published on or about December 3, 2003. No public hearing was requested and none was held. The Bureau received no comments during the public comment period which closed on January 2, 2004. Therefore, the regulation is being promulgated essentially as proposed.

EFFECTIVE DATE: January 18, 2004

 

Last Updated: October 3, 2008