SECTION 85:10-3-22. Organizational expenses

(a)   For purposes of section 304 of the Code, "organizational expenses" shall include the following:

(1)   Expenses incurred and necessary to present the application for authority to engage in the banking business, through and including all appeals. These expenses shall include, but are not limited to, the charter filing fee to the Department, attorney's fees, feasibility study fees, expenses incurred in order to provide the Board with those facts upon which the Board or subsequent courts may base a decision as to the feasibility of granting a charter.

(2)   Expenses incurred in obtaining membership in the Federal Reserve System and/or insurance from the Federal Deposit Insurance Corporation.

(3)   Expenses incurred up to the issuance of a certificate of authority. Upon the issuance of the certificate of authority, the application has been concluded and subsequently there is in existence a bank, although it may be inoperative and not opened at the time. Thereafter such expenses incurred by the bank are not organizational expense butexpenses of the bank.

(4)   If a certificate of authority is issued prior to the actual acceptance of the bank into membership of the Federal Reserve System or obtaining insurance from the Federal Deposit Insurance Corporation, any expenses which might thereafter be incurred in regard to membership in the Federal Reserve System or obtaining insurance from the Federal Deposit Insurance Corporation would be organization expenses rather than expense of the bank.

(5)   Amounts paid to future personnel of the bank in organization and fees to consultants may be considered organizational expenses when approved in advance by the Commissioner.

(b)   Expenses which are not organizational expenses and which must be charged to the bank without regard to whether the bank is open for business, include but are not limited to salaries paid to bank officers and other personnel after the issuance of the certificate of authority, amounts paid for the purchase of land and fixed assets, including reimbursement of previously paid options for land, amounts paid for the construction of a bank building, expenses for stationery and supplies, signage costs, and fees paid to vendors that are providing or will later provide services to the bank. Questions of whether an expense should be treated as organizational expense or expense of the newly organized bank should be addressed to the Commissioner in writing, and his determination thereof shall be final.

[Source: Amended at 14 Ok Reg 3559, eff 8-1-97 (emergency); Amended at 15 Ok Reg 2952, eff 7-15-98; Amended at 25 Ok Reg 1064, eff 5-25-08]