Industry Letter

May 2006



Dear Sir/Madam:

We are writing to advise you of recently enacted revisions to the application and licensing fee structure authorized by changes to Section 18-a of the New York Banking Law ("NYBL"). On May 11, 2006 the revised fee schedule, which eliminates annual licensing fees, will be put into effect. Any application received in the offices of the Department on or after May 11 will be subject to the new fee schedule. Incomplete applications received before May 11th may also be subject to the new fee schedule. All application fees will be applied to the operating costs of the Department.

Highlights of revisions for some applications are noted below. Please note that not all fees are listed in this notice. A detailed schedule of all fees will be published on our Web site ( on or before May 11th.

Licensees/Registrants (Non-Depository)

Annual licensing and registration fees previously charged to mortgage bankers and brokers, check cashers, licensed lenders, transmitters of money, sales finance companies and premium finance companies have been eliminated. Original application/investigation fees for all new applicants noted above with the exception of mortgage brokers will be $3,000. The original application/investigation fee for mortgage brokers will be $1,500.

Depository and Similar Institutions

Application/investigation fees for de novo charter applications, mergers, charter conversions and other significant corporate actions will be $12,500. The application/investigation fee for new licenses of foreign banking organizations (branches, agencies and representative offices) will be $7,500. The application/investigation fee for additional branches and locations of domestic chartered institutions will be $750. In addition, the exemption of credit unions from payment of application fees has been eliminated.

Fines and Penalties

The penalty amounts that may be imposed on institutions have also been revised. A three-tiered structure that distinguishes between violations that result from oversight, reckless acts or that are knowingly committed has been established. These violation provisions also include significant penalties for failure to make proper and timely reports to the Superintendent when required. Fines may be levied per violation per day. All penalties and fines will continue to be remitted directly to the General Fund of the State of New York and will not be applied to the Department's budget.

Should you have any questions concerning this notice, please contact your regular Divisional contact. Inquiries related to Depository Institutions may also be directed to the Applications Unit at (212) 709-5517.