§ 14351 Credit Union Assessment Rates

This law says a credit union has to pay an annual fee that is either at least $2,000 or a calculated amount based on its total assets and a rate set by the commissioner.

Key Takeaways

•The fee is never less than $2,000.
•The commissioner can set a base rate, but it can’t be higher than $2.20 for each $1,000 of assets.
•You calculate the fee by applying the percentages in the table to each slice of the credit union’s assets and then adding them up.

Example

A credit union that has $12 million in assets wants to know how much its yearly fee will be.

First the commissioner sets a base rate (say $2.00 for every $1,000 of assets). Then the credit union’s assets are split into the brackets in the table, each bracket gets a percentage of that base rate, the amounts are added up, and the final fee is the bigger of that total or $2,000.

How to Calculate

Annual Assessment = max( $2,000 , Σ [ (Asset amount in each bracket ÷ 1,000) × Base Rate × Percentage ] )

Find the base assessment rate the commissioner set (it can’t be more than $2.20 per $1,000 of assets).
Break the credit union’s total assets into the ranges shown in the table (0‑$3M, $3M‑$6M, etc.).
For each range, calculate: (Assets in that range ÷ 1,000) × Base Rate × (Percentage for that range ÷ 100).
Add up the numbers from all the ranges.
Compare the sum to $2,000. The larger number is the fee the credit union must pay.

Credit union with $12,000,000 in assets; commissioner’s base rate = $2.00 per $1,000.

Result: Calculation: - $0‑$3M: (3,000,000 ÷ 1,000) × $2.00 × 0.85 = 3,000 × $2 × 0.85 = $5,100 - $3M‑$6M: (3,000,000 ÷ 1,000) × $2.00 × 0.25 = 3,000 × $2 × 0.25 = $1,500 - $6M‑$10M: (4,000,000 ÷ 1,000) × $2.00 × 0.13 = 4,000 × $2 × 0.13 = $1,040 - $10M‑$12M: (2,000,000 ÷ 1,000) × $2.00 × 0.125 = 2,000 × $2 × 0.125 = $500 Total = $5,100 + $1,500 + $1,040 + $500 = $8,140. Since $8,140 is bigger than $2,000, the annual assessment is $8,140.

(a) The amount of the annual assessment on any credit union holding a certificate authorizing it to act as a credit union shall be the greater of (1) two thousand dollars ($2,000) or (2) the sum of the products determined by multiplying (A) increments of the credit union’s total assets by (B) percentages of the base assessment rate, according to the following table: Percentage of Base Assessment Rate Total Assets $0–$3,000,000 85.0% $3,000,000–$6,000,000 25.0% $6,000,000–$10,000,000 13.0% $10,000,000–$100,000,000 12.5% $100,000,000–$500,000,000 12.25% $500,000,000–$1,000,000,000 12.0% $1,000,000,000–$2,000,000,000 11.5% $2,000,000,000–$5,000,000,000 8.0% $5,000,000,000–$10,000,000,000 3.5% Excess over $10,000,000,000 3.0% (b) The base assessment rate for each annual assessment shall be fixed by the commissioner but shall not exceed two dollars and twenty cents ($2.20) per one thousand dollars ($1,000) of total assets. (Amended by Stats. 2013, Ch. 115, Sec. 1. (AB 1282) Effective January 1, 2014.)

This law says a credit union has to pay an annual fee that is either at least $2,000 or a calculated amount based on its total assets and a rate set by the commissioner.

Key Takeaways

•The fee is never less than $2,000.
•The commissioner can set a base rate, but it can’t be higher than $2.20 for each $1,000 of assets.
•You calculate the fee by applying the percentages in the table to each slice of the credit union’s assets and then adding them up.

Example

A credit union that has $12 million in assets wants to know how much its yearly fee will be.

How to Calculate

Annual Assessment = max( $2,000 , Σ [ (Asset amount in each bracket ÷ 1,000) × Base Rate × Percentage ] )

Find the base assessment rate the commissioner set (it can’t be more than $2.20 per $1,000 of assets).
Break the credit union’s total assets into the ranges shown in the table (0‑$3M, $3M‑$6M, etc.).
For each range, calculate: (Assets in that range ÷ 1,000) × Base Rate × (Percentage for that range ÷ 100).
Add up the numbers from all the ranges.
Compare the sum to $2,000. The larger number is the fee the credit union must pay.

Credit union with $12,000,000 in assets; commissioner’s base rate = $2.00 per $1,000.

Key Takeaways

Example

How to Calculate

Key Terms

References

§ 14351 Credit Union Assessment Rates

Key Takeaways

Example

How to Calculate

Key Terms

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References

Key Takeaways

Example

How to Calculate

Key Terms

Related Statutes

References