[Federal Register Volume 85, Number 53 (Wednesday, March 18, 2020)]
[Rules and Regulations]
[Pages 15378-15382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-05083]



[[Page 15378]]

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DEPARTMENT OF THE TREASURY

31 CFR Part 150

RIN 1505-AC59


Assessment of Fees on Certain Bank Holding Companies and Nonbank 
Financial Companies Supervised by the Federal Reserve Board To Cover 
the Expenses of the Financial Research Fund

AGENCY: Departmental Offices, Department of the Treasury.

ACTION: Final rule.

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SUMMARY: The Department of the Treasury (``Treasury'') is issuing this 
final rule to implement section 401 of the Economic Growth, Regulatory 
Relief, and Consumer Protection Act (the ``Economic Growth Act''), 
which amends section 155 of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (the ``Dodd-Frank Act''). As amended, section 
155 requires the Secretary of the Treasury to establish, by regulation, 
an assessment schedule applicable to bank holding companies with total 
consolidated assets of $250 billion or greater and nonbank financial 
companies supervised by the Board of Governors of the Federal Reserve 
System (``the Board''), to collect assessments equal to the total 
expenses of the Office of Financial Research (the ``OFR''). The final 
rule also simplifies the method for determining the amount of total 
assessable assets for foreign banking organizations, which is made 
possible by a new regulatory data source. This rule finalizes a 
November 4, 2019 proposed rule without change.

DATES: This rule is effective April 17, 2020.

FOR FURTHER INFORMATION CONTACT: John Zitko, Senior Counsel, OFR, (202) 
927-8372.

SUPPLEMENTARY INFORMATION: 

I. Background

    Section 155(d) of the Dodd-Frank Act directs the Secretary of the 
Treasury to establish, by regulation, and with the approval of the 
Financial Stability Oversight Council (the ``Council''), an assessment 
schedule to collect assessments from certain companies equal to the 
total expenses of the OFR. On May 21, 2012, Treasury published a final 
regulation implementing section 155(d) in the Federal Register, 
codified at 31 CFR part 150 (the ``Original Rule''). Before the 
enactment of the Economic Growth Act, pursuant to section 155(d) and 
the implementing regulation, Treasury collected assessments from bank 
holding companies with total consolidated assets of $50,000,000,000 or 
greater and nonbank financial companies supervised by the Board.
    On May 24, 2018, the Economic Growth Act was signed into law. 
Section 401(c)(1) of the Economic Growth Act replaced the $50 billion 
reference in section 155(d) of the Dodd-Frank Act with $250 billion. In 
addition, section 401(f) of the Economic Growth Act required any bank 
holding company identified as a global systemically important bank 
holding company (``G-SIB'') pursuant to 12 CFR 217.402 to be considered 
a bank holding company with total consolidated assets equal to or 
greater than $250 billion for purposes of section 155(d) of the Dodd-
Frank Act. As a result of this statutory amendment, bank holding 
companies with less than $250 billion in total consolidated assets that 
are not G-SIBs are not to be assessed under Dodd-Frank Act section 
155(d).
    The Economic Growth Act sets forth two different effective dates. 
For bank holding companies with total consolidated assets of less than 
$100 billion, it became effective on May 24, 2018 (the date of 
enactment). For bank holding companies with total consolidated assets 
of $100 billion or more and for G-SIBs, the effective date was November 
24, 2019 (18 months after the date of enactment). This final rule, in 
part, implements section 401.
    Under section 118 of the Dodd-Frank Act, the expenses of the 
Council are treated as expenses of, and are paid by, the OFR. In 
addition, under section 210 of the Dodd-Frank Act, certain 
implementation expenses of the Federal Deposit Insurance Corporation 
(``FDIC'') associated with the FDIC's orderly liquidation authority are 
treated as expenses of the Council,\1\ and the FDIC is directed to 
periodically submit requests for reimbursement to the Chairperson of 
the Council. The total expenses for the OFR therefore include the 
combined expenses of the OFR and the Council and certain expenses of 
the FDIC. All of these expenses are paid out of the Financial Research 
Fund (the ``FRF''), a fund managed by Treasury.
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    \1\ Under Section 210(n)(10)(C) of the Dodd-Frank Act the term 
implementation expenses ``(i) means costs incurred by [the FDIC] 
beginning on the date of enactment of this Act, as part of its 
efforts to implement [Title II] that do not relate to a particular 
covered financial company; and (ii) includes the costs incurred in 
connection with the development of policies, procedures, rules, and 
regulations and other planning activities of the [FDIC] consistent 
with carrying out [Title II].''
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    The Council was established by the Dodd-Frank Act to identify risks 
to U.S. financial stability, promote market discipline, and respond to 
emerging threats to the stability of the U.S. financial system. The 
Council is chaired by the Secretary of the Treasury, and its 15 members 
include all of the federal financial regulators, an independent member 
with insurance expertise appointed by the President, and state 
financial regulators.
    The OFR was established within Treasury by the Dodd-Frank Act to 
support the Council and its member agencies. Among the OFR's key duties 
are:
     Collecting data on behalf of the Council and providing 
such data to the Council and member agencies;
     Standardizing the types and formats of data reported and 
collected;
     Performing research;
     Developing tools for risk measurement and monitoring; and
     Reporting to Congress and the public on the OFR's 
assessment of significant financial market developments and potential 
emerging threats to U.S. financial stability.

II. The Proposed and Final Rule

    Treasury issued a proposed rule on November 4, 2019, to implement 
the changes to the FRF assessments required by the Economic Growth 
Act.\2\ The proposed rule also included certain other amendments to 31 
CFR part 150 to simplify the method for determining the amount of total 
assessable assets for certain entities, to remove outdated references 
to the initial assessment period (which concluded in 2013), and to make 
other non-substantive changes to add clarifying or remove redundant 
language.
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    \2\ 84 FR 59320 (November 4, 2019).
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    Treasury received no public comments on the proposed rule. 
Accordingly, Treasury is issuing this final rule as proposed. Following 
is a description of the changes the final rule makes to the Original 
Rule.

a. Determination of Assessed Companies

    To impose assessments under section 155 of the Dodd-Frank Act, 
Treasury must identify companies that are subject to the assessment. As 
described in the Original Rule and below, Treasury works closely with 
the Board to determine the population of assessed companies.
    The original text of Dodd-Frank Act section 155(d) required 
assessments to be collected from bank holding companies with total 
consolidated assets of $50 billion or greater and nonbank financial 
companies supervised by the Board. The Economic Growth Act raised the 
asset threshold

[[Page 15379]]

for bank holding companies to $250 billion and also stated that a bank 
holding company, regardless of asset size, that has been identified as 
a G-SIB under Sec.  217.402 of title 12, Code of Federal Regulations, 
shall be considered a bank holding company with total consolidated 
assets equal to or greater than $250 billion for purposes of section 
155(d) of the Dodd-Frank Act.
    Accordingly, the final rule changes the definitions of ``Assessed 
Company'' and ``Total Assessable Assets'' in 12 CFR 150.2, and deletes 
the reference to foreign banking organizations with less than $50 
billion in 12 CFR 150.5.

b. Determination of Total Assessable Assets

i. Foreign Banking Organizations
    At the time of adoption of the Original Rule, there was no single 
regulatory reporting form that provided a foreign banking 
organization's total assets of combined U.S. operations, including its 
U.S. branches, agencies, and subsidiaries. The preamble to the Original 
Rule specifically noted the possibility that reporting requirements for 
foreign banking organizations would change over time and that the list 
of reports would need to be adjusted.\3\ To allow for the possibility 
of these changes, the Original Rule did not include a list of specific 
reference reports for foreign banking organizations, in contrast to 
U.S. bank holding companies. It was noted that calculating banking 
organizations' total assets of combined U.S. operations based on 
multiple reports could result in double-counting.\4\ The preamble to 
the Original Rule stated that Treasury would make every effort to avoid 
double-counting, consulting with the Board and the affected firms as 
necessary, and that any questions could be addressed through the 
appeals process.\5\
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    \3\ 77 FR 29890 (May 21, 2012).
    \4\ 77 FR 29888-89 (May 21, 2012).
    \5\ 77 FR 29889 (May 21, 2012).
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    After the adoption of the Original Rule, the Board modified its 
form FR Y-7Q by adding a line item for reporting the total combined 
assets of a foreign banking organization's U.S. operations. Line item 6 
of part 1A of FR Y-7Q now requires reporting of the total combined 
assets of a top-tier foreign banking organization's U.S.-domiciled 
affiliates, branches, and agencies, excluding intercompany balances and 
intercompany transactions between those entities to the extent such 
items are not already eliminated in consolidation.\6\ Accordingly, to 
simplify the method for determining the amount of total assessable 
assets for foreign banking organizations and to adopt an approach for 
foreign banking organizations comparable to the approach under the 
Original Rule for U.S. bank holding companies, the final rule includes 
changes to the definition of ``total assessable assets'' by specifying 
that the calculation of a foreign banking organization's total 
assessable assets shall be based on the data reported in the FR Y-7Q.
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    \6\ See Federal Reserve, The Capital and Asset Report for 
Foreign Banking Organizations--FR Y-7Q, available at https://www.federalreserve.gov/reportforms/forms/FR_Y-7Q20190331_f.pdf.
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ii. Timing of Determination Dates, Billing, and Collection
    Under the Original Rule, assessments were semiannual. On the 
specified determination date before each assessment period, Treasury 
determined the pool of assessed companies, which received confirmation 
statements. After any appeals, assessments were debited from assessed 
companies' accounts on the assessment payment date.
    The Original Rule generally used a period of four calendar quarters 
to measure the total assessable assets of both U.S. and foreign 
entities for assessments. Thus, for the assessment period with a 
November 30 determination date, total assessable assets were based on 
the company's regulatory filings for the fourth quarter of the previous 
calendar year and the first three quarters of the same calendar year. 
For the assessment period with a May 31 determination date, total 
assessable assets were based on the company's filings for the last 
three quarters of the previous year and the first quarter of the same 
calendar year.
    Both the Federal Reserve's form FR Y-9C, which the Original Rule 
required to be used to determine total assessable assets of U.S. bank 
holding companies, and the FR Y-7Q, which the final rule incorporates 
to determine the total assessable assets of foreign banking 
organizations, are quarterly reports. Their filing deadlines, however, 
are asynchronous, as the FR Y-9C generally must be filed within 40 
calendar days after each calendar quarter,\7\ and the FR Y-7Q generally 
must be filed within 90 calendar days after the quarter ends. The 
timing of updated reports therefore varies. For example, on the 
determination date of May 31 under the Original Rule, the FR Y-9C 
reports were already available for Q1 of the same year, but Q1 reports 
on FR Y-7Q were not due until approximately one month later (June 29).
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    \7\ Reports as of December 31 are due 45 calendar days later.
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    To enable consistency in the timing of determining assessable 
assets for U.S. and foreign entities, the final rule moves each of the 
two semiannual determination dates one month earlier. Accordingly, the 
first determination date in each calendar year will be April 30 instead 
of May 31 as under the Original Rule, and the second determination date 
will be October 31, instead of November 30 as under the Original Rule. 
This change enables each assessment to be based on companies' filings 
for the last two calendar quarters of the previous year and the first 
two quarters of the current calendar year for assessment periods with 
an October 31 determination date, and all four quarters of the previous 
calendar year for assessment periods with an April 30 determination 
date.
    Consistent with Treasury's process under the Original Rule, the 
final rule provides that before each assessment period, after 
determining the pool of assessed companies and publishing an assessment 
fee rate, Treasury will calculate the assessment fee for each assessed 
company, send an electronic billing notification to each assessed 
company, and, on the assessment payment date, initiate a direct debit 
to each company's account through www.pay.gov to collect the 
assessments. The final rule retains the process under the Original 
Rule, with one additional month added to the beginning of each cycle, 
as described above, while keeping the dates under the Original Rule for 
the notice of fees, billing, and payment. In order to provide 
additional clarity as to when redetermination requests must be received 
from companies wishing to appeal their status as an assessed company or 
the total assessable assets that the Department has determined will be 
used for calculating the company's assessment, the final rule amends 
the reference to such date in 12 CFR 150.6(b) from ``one month'' to 
``30 calendar days.''
    The table below shows approximate dates of the assessment billing 
and collection process under the final rule:

[[Page 15380]]



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                                                                                    Initial response
                                Determination     Confirmation     Redetermination         to          Publication of
      Assessment period              date        statement date   request deadline   redetermination  notice of fees *    Billing date     Payment date
                                                                                         request
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1st semiannual assessment      October 31.....  November 15 (or   30 calendar days  21 calendar days  February 15 (or   March 1 (or      March 15 (or
 period.                                         next business     from date of      from receipt of   next business     prior business   next business
(April--September)...........                    day).             Confirmation      Redetermination   day).             day).            day).
                                                                   Statement.        Request.
2nd semiannual assessment      April 30.......  May 15 (or next   30 calendar days  21 calendar days  August 15 (or     September 1 (or  September 15
 period.                                         business day).    from date of      from receipt of   next business     prior business   (or next
(October--March).............                                      Confirmation      Redetermination   day).             day).            business day).
                                                                   Statement.        Request.
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* Rate published in the Notice of Fees.

    The timeframe for sending confirmation statements and receiving 
appeals under the final remains the same as under the Original Rule. 
Specifically, confirmation statements will continue to be mailed no 
later than 15 calendar days after the determination date, and appeals 
by assessable companies will continue to be due one month later. In 
addition to promoting consistent measurements of U.S. and foreign 
entities, as noted above, adding a month to the beginning of the FRF 
assessments cycle will also afford assessed companies additional time 
to address appeals and make payment arrangements, and will provide 
Treasury additional time to calculate assessments and administer the 
billing process.

III. Administrative Law Matters

a. Regulatory Flexibility Act

    Congress enacted the Regulatory Flexibility Act (the ``RFA'') to 
address concerns related to the effects of agency rules on small 
entities.\8\ Treasury is sensitive to the impact its rules may impose 
on small entities. The RFA requires agencies either to provide an 
initial regulatory flexibility analysis with a proposed rule for which 
general notice of proposed rulemaking is required, or to certify that 
the proposed rule will not have a significant economic impact on a 
substantial number of small entities.\9\
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    \8\ 5 U.S.C. 601 et seq.
    \9\ 5 U.S.C. 603(a).
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    Under regulations issued by the Small Business Administration, a 
``small entity'' includes those firms within the ``Finance and 
Insurance'' sector with asset sizes that vary from $7.5 million in 
assets to $600 million or less in assets.\10\ For purposes of the RFA, 
entities that are banks are considered small entities if their assets 
are less than or equal to $600 million.
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    \10\ 13 CFR 121.201.
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    As discussed above, under section 155 of the Dodd-Frank Act, as 
amended by the Economic Growth Act, only bank holding companies with 
more than $250 billion in total consolidated assets, G-SIBs, and 
nonbank financial companies supervised by the Board will be subject to 
assessments under the final rule. As such, the final rule will not 
apply to small entities and a regulatory flexibility analysis is not 
required.
    Pursuant to the Regulatory Flexibility Act, 5 U.S.C. 605(b), it is 
hereby certified that this final rule will not have a significant 
economic impact on a substantial number of small entities.

b. Paperwork Reduction Act

    We estimate that there are certain direct costs associated with 
complying with these rules. On a one-time basis, assessed entities are 
required to set up a bank account for fund transfers and to provide the 
required information to Treasury through an information collection 
form. The form includes bank account routing information and contact 
information for the individuals at the company who will be responsible 
for setting up the account and ensuring that funds are available on the 
billing date. We estimate that approximately 20 companies could be 
affected, and that completing the form and submitting it to Treasury 
will take approximately 15 minutes. The aggregate paperwork burden is 
estimated at 5.0 hours. However, all of these companies have already 
established an account for payments or collections to the U.S. 
Government pursuant to the Original Rule.
    On a semiannual basis, assessed companies have the opportunity to 
review the confirmation statement and assessment bill. The final rule 
does not require the companies to conduct this review, but does permit 
it. We anticipate that at least some of the companies will conduct 
reviews, in part because the cost associated with it is very low.
    The collection of information contained in the final rule has been 
reviewed and approved by the Office of Management and Budget (OMB) 
under OMB control number 1505-0245. An agency may not conduct or 
sponsor and a person is not required to respond to a collection of 
information unless it displays a valid OMB control number.

c. Regulatory Planning and Review (Executive Orders 12866 and 13563)

    This final rule is not a significant regulatory action as defined 
in section 3(f) of Executive Order 12866 as supplemented by Executive 
Order 13563.

List of Subjects in 31 CFR Part 150

    Bank holding companies, Financial research fund, Nonbank financial 
companies.


0
For the reasons set forth in the preamble, title 31, part 150, of the 
Code of Federal Regulations is revised to read as follows:

PART 150--FINANCIAL RESEARCH FUND

Sec.
150.1 Scope.
150.2 Definitions.
150.3 Determination of assessed companies.
150.4 Calculation of assessment basis.
150.5 Calculation of assessments.
150.6 Notice and payment of assessments.

    Authority: 12 U.S.C. 5345; 31 U.S.C. 321; 12 U.S.C. 5365 note 
(Section 401(d), Pub. L. 115-174, 132 Stat. 1358; Section 401(f), 
Pub. L. 115-174, 132 Stat. 1359).


Sec.  150.1  Scope.

    The assessments contained in this part are made pursuant to the 
authority contained in 12 U.S.C. 5345.


Sec.  150.2  Definitions.

    As used in this part:
    Assessed company means:
    (1) A bank holding company that has $250 billion or more in total 
assessable assets; or
    (2) A bank holding company, regardless of asset size, that has been 
identified as a global systemically important bank holding company 
under Sec.  217.402 of title 12, Code of Federal Regulations; or
    (3) A nonbank financial company that the Council has determined 
under section 113 of the Dodd-Frank Act shall be supervised by the 
Board.
    Assessment basis means, for a given assessment period, an estimate 
of the total expenses that are necessary or appropriate to carry out 
the

[[Page 15381]]

responsibilities of the Office of Financial Research (OFR) and the 
Council as set out in the Dodd-Frank Act (including an amount necessary 
to reimburse reasonable implementation expenses of the Corporation that 
shall be treated as expenses of the Council pursuant to section 
210(n)(10) of the Dodd-Frank Act).
    Assessment fee rate, with regard to a particular assessment period, 
means the rate published by the Department for the calculation of 
assessment fees for that period.
    Assessment payment date means:
    (1) For any assessment period ending on March 31 of a given 
calendar year, September 15 of the prior calendar year; and
    (2) For any assessment period ending on September 30 of a given 
calendar year, March 15 of the same year.
    Assessment period means:
    (1) Any period of time beginning on October 1 and ending on March 
31 of the following calendar year; or
    (2) Any period of time beginning on April 1 and ending on September 
30 of the same calendar year.
    Bank holding company means:
    (1) A bank holding company as defined in section 2 of the Bank 
Holding Company Act of 1956 (12 U.S.C. 1841); or
    (2) A foreign banking organization.
    Board means the Board of Governors of the Federal Reserve System.
    Corporation means the Federal Deposit Insurance Corporation.
    Council means the Financial Stability Oversight Council.
    Department means the Department of the Treasury.
    Determination date means:
    (1) For any assessment period ending on March 31 of a given 
calendar year, April 30 of the prior calendar year; and
    (2) For any assessment period ending on September 30 of a given 
calendar year, October 31 of the prior calendar year.
    Dodd-Frank Act means the Dodd-Frank Wall Street Reform and Consumer 
Protection Act.
    Foreign banking organization means a foreign bank or company that 
is treated as a bank holding company for purposes of the Bank Holding 
Company Act of 1956, pursuant to section 8(a) of the International 
Banking Act of 1978 (12 U.S.C. 3106(a)).
    OFR means the Office of Financial Research established by section 
152 of the Dodd-Frank Act.
    Total assessable assets means:
    (1) For a bank holding company other than a foreign banking 
organization, the average of the company's total consolidated assets 
for the four quarters preceding the relevant determination date, as 
reported on the bank holding company's four most recent Consolidated 
Financial Statements for Bank Holding Companies--FR Y-9C filings;
    (2) For any foreign banking organization, the average of the 
company's total assets of combined U.S. operations for the four 
quarters preceding the relevant determination date, as reported on the 
foreign banking organization's four most recent quarterly Capital and 
Asset Report for Foreign Banking Organizations--FR Y-7Q filings, or, if 
the foreign banking organization only files such form annually, the 
average of the two most recent annual filings on such form; or
    (3) For a nonbank financial company that the Council has determined 
under section 113 of the Dodd-Frank Act shall be supervised by the 
Board, either the average of the company's total consolidated assets 
for the four quarters preceding the relevant determination date, if the 
company is a U.S. company, or the average of the total assets of the 
company's combined U.S. operations for the four quarters preceding the 
relevant determination date, if the company is a non-U.S. company.


Sec.  150.3  Determination of assessed companies.

    (a) The determination that a bank holding company or a nonbank 
financial company is an assessed company will be made by the 
Department.
    (b) The Department will apply the following principles in 
determining whether a company is an assessed company:
    (1) For tiered bank holding companies for which a holding company 
owns or controls, or is owned or controlled by, other holding 
companies, the assessed company shall be the top-tier, regulated 
holding company.
    (2) In situations where more than one top-tier, regulated bank 
holding company has a legal authority for control of a U.S. bank, each 
of the top-tier regulated holding companies shall be designated as an 
assessed company.
    (3) In situations where a company has not filed four consecutive 
quarters of the financial reports referenced above for the most recent 
quarters (or two consecutive years for annual filers of the FR Y-7Q or 
successor form), such as may be true for companies that recently 
converted to a bank holding company, the Department will use, at its 
discretion, other financial or annual reports filed by the company, 
such as Securities and Exchange Commission (SEC) filings, to determine 
a company's total consolidated assets.
    (4) In situations where a company does not report total 
consolidated assets in its public reports or where a company uses a 
financial reporting methodology other than U.S. generally accepted 
accounting principles (GAAP) to report on its U.S. operations, the 
Department will use, at its discretion, any comparable financial 
information that the Department may require from the company for this 
determination.
    (c) Any company that the Department determines is an assessed 
company on a given determination date will be an assessed company for 
the entire assessment period related to such determination date, and 
will be subject to the full assessment fee for that assessment period, 
regardless of any changes in the company's assets or other attributes 
that occur after the determination date.


Sec.  150.4  Calculation of assessment basis.

    For each assessment period, the Department will calculate an 
assessment basis that shall be sufficient to replenish the Financial 
Research Fund to a level equivalent to the sum of:
    (a) Budgeted operating expenses for the OFR for the applicable 
assessment period;
    (b) Budgeted operating expenses for the Council for the applicable 
assessment period;
    (c) Budgeted capital expenses for the OFR for the 12-month period 
beginning on the first day of the applicable assessment period;
    (d) Budgeted capital expenses for the Council for the 12-month 
period beginning on the first day of the applicable assessment period; 
and
    (e) An amount necessary to reimburse reasonable implementation 
expenses of the Corporation as provided under section 210(n)(10) of the 
Dodd-Frank Act.


Sec.  150.5  Calculation of assessments.

    (a) For each assessed company, the Department will calculate the 
total assessable assets in accordance with the definition in Sec.  
150.2.
    (b) The Department will allocate the assessment basis to the 
assessed companies in the following manner:
    (1) Based on the sum of all assessed companies' total assessable 
assets, the Department will calculate the assessment fee rate necessary 
to collect the assessment basis for the applicable assessment period.
    (2) The assessment payable by an assessed company for each 
assessment period shall be equal to the assessment fee rate for that 
assessment period multiplied by the total assessable assets of such 
assessed company.

[[Page 15382]]

Sec.  150.6  Notice and payment of assessments.

    (a) No later than fifteen calendar days after the determination 
date, the Department will send to each assessed company a statement 
that:
    (1) Confirms that such company has been determined by the 
Department to be an assessed company; and
    (2) States the total assessable assets that the Department has 
determined will be used for calculating the company's assessment.
    (b) If a company that is required to make an assessment payment for 
a given assessment period believes that the statement referred to in 
paragraph (a) of this section contains an error, the company may 
provide the Department with a written request for a revised statement. 
Such request must be received by the Department via email within 30 
calendar days and must include all facts that the company requests the 
Department to consider. The Department will respond to all such 
requests within 21 calendar days of receipt thereof.
    (c) No later than the 14 calendar days prior to the payment date 
for a given assessment period, the Department will send an electronic 
billing notification to each assessed company, containing the final 
assessment that is required to be paid by such assessed company.
    (d) For the purpose of making the payments described in Sec.  
150.5, each assessed company shall designate a deposit account for 
direct debit by the Department through www.pay.gov or successor 
website. No later than the later of 30 days prior to the payment date 
for an assessment period, or April 17, 2020, each such company shall 
provide notice to the Department of the account designated, including 
all information and authorizations required by the Department for 
direct debit of the account. After the initial notice of the designated 
account, no further notice is required unless the company designates a 
different account for assessment debit by the Department, in which case 
the requirements of the preceding sentence apply.
    (e) Each assessed company shall take all actions necessary to allow 
the Department to debit assessments from such company's designated 
deposit account. Each such company shall, prior to each assessment 
payment date, ensure that funds in an amount at least equal to the 
amount on the relevant electronic billing notification are available in 
the designated deposit account for debit by the Department. Failure to 
take any such action or to provide such funding of the account shall be 
deemed to constitute nonpayment of the assessment. The Department will 
cause the amount stated in the applicable electronic billing 
notification to be directly debited on the appropriate payment date 
from the deposit account so designated.
    (f) In the event that, for a given assessment period, an assessed 
company materially misstates or misrepresents any information that is 
used by the Department in calculating that company's total assessable 
assets, the Department may at any time re-calculate the assessment 
payable by that company for that assessment period, and the assessed 
company shall take all actions necessary to allow the Department to 
immediately debit any additional payable amounts from such assessed 
company's designated deposit account.
    (g) If a due date under this section falls on a date that is not a 
business day, the applicable date shall be the next business day.

    Dated: March 6, 2020.
Kipp Kranbuhl,
Principal Deputy Assistant Secretary, Financial Markets, Department of 
the Treasury.
[FR Doc. 2020-05083 Filed 3-17-20; 8:45 am]
 BILLING CODE 4810-25-P