J.P. MORGAN CHASE BANK-2016 - Laserfiche WebLink

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C. FDIC Insurance J.P. Morgan charges a Premium Assessment Fee (PAF), which is a monthly administrative fee assessed to address various regulatory and other charges affecting J.P. Morgan. In calculating the earnings credit rate (ECR), J.P. Morgan currently does not deduct the reserve requirement from the available balance. Since October 1, 2oo8, the Federal Reserve has paid interest on reserves held at the Federal Reserve by member banks. J.P. Morgan passes this benefit to clients by basing the earnings credit on i00% of the eligible balance of non - interest bearing demand deposit accounts. The following formula is used to calculate the PAF: Rate x Average Daily Positive Ledger Balance x (Actual Days in Month / Actual Days in Year) d. Service Charge Credit Any cash remaining in a non - interest bearing demand deposit account uninvested at the end of the day is used to determine an earnings credit value on account balances. This credit is calculated by J.P. Morgan, and the total credit accrued for the month is reflected on the monthly account analysis statement and is applied to reduce the invoiced amount due for banking service fees. J.P. Morgan uses the following formula to calculate the monthly earnings credit allowance: (Average Daily Positive Ledger Balance x ECR x Actual Number Of Days in Month) / Actual Number of Days in Year C. Once the contract has been awarded, the Bank will not be permitted to charge the City for any fees not listed on the Cost /Bid Form. The only exceptions to this limitation will be if the City specifically requests additional services not identified In the RFP or in Bank's proposal. The fees for new services will be negotiated and added to the contract as an amendment or through a change order process. However, if a regulatory agency imposes a fee to the Bank which is passed through to all Bank customers then all such fees shall be accommodated. J.P. Morgan acknowledges the requirement. Page 113 JTMorgan