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Show The Enterprise Review , December 15, 1976 Page 7b Financial Institutions Face Higher Fee Rates Banks, credit unions, trust companies, and both industrial and consumer loan firms face an average 30 percent increase in fees paid to the Utah State Department of Financial Institutions if a bill proposed by Sen. Edward T. Beck is passed by the 1977 state legislature. Senate Bill No. 2, written by department commissioner W. S. Brimhall, and drafted by Sen. Beck, asks for a 30 percent upward adjustment of fees charged for cost of supervision and examination by the department. The bill also increases the required amount of bank charter fees through application from $250 to $500. Commissioner Brimhall said additional funds are needed by the financial department because of increased operational costs. Money collected by the state office goes directly to the state general budget where it is earmarked for return to the department the following year. Unless we receive ad- ditional funds for fiscal 1978-7Brimhall said, we will be operating at a deficit by the middle of that 9, fiscal year. One reason for the increase, he said, is the increasing number of bank applications that require Brimhall exhearings. plained that hearings are held on bank applications when opposition to the proposed unit bank or branch is received in writing by the state office. The cost of the hearings has increased from about $500 to $1,000. More hearings are necessary, he added, as Salt Lake and Utah both reach their bank saturation point. He said the amount of opposition to new banks has increased tremendously over the past year. While the overall increase. in examination and charter fees will increase by about 30 percent, Brimhall said, that is only an average and financial institutions will be charged according to assets, depositors, and the amount of perdiem required for state examainers while working at each institution. The state office is in charge of supervising loan rates, making sure loan companies and banks make proper disclosure of assets and reserves, appraisal of assets and evaluation of financial securities. He said letters explaining the necessity of such a bill have been sent to all financial institutions in the state. As yet, the state office has received ho complaints or negative reaction to the proposed legislation. Things are happening and news is being made every minute, not just once or twice a day. If you wait to read about it, its late. If you wait to see it on TV, its late. KWMS is Utahs only Al News station, offering unduplicated programming 24 hours a day. Tune 1280 on your AM dial for news; Anytime On time. |