Board of Trustees
Independent Claims Resolution Foundation
Rules on Interest, Charges, and Fees for
Arbitral Decisions of the Claims Resolution Tribunal
Section 5.1(vi) of the Charter of the Independent Claims Resolution Foundation provides
that the Board of Trustees of the Foundation (the "Board") shall promulgate substantive rules for
decisions by the Claims Resolution Tribunal (the "CRT") on interest, charges, and fees on
dormant accounts. In accordance with the grant of authority provided by Section 5.1(vi), the
Board hereby establishes the substantive rules for decisions by the CRT on interest, charges, and
fees on dormant accounts under its jurisdiction, and they constitute the "Guidelines" referred to
in Article 16 of the CRT Rules of Procedure.
These Rules are necessary in order to provide a uniform method of calculating account
values in the general absence of information about original account values at the time accounts
were opened or about subsequent transactions, including the assessment of fees and charges after
accounts became dormant. To permit efficient administration of the claims process, the Rules
use a simplified methodology following the general recommendations of the Panel on Interest
and Fees chaired by Mr. Henry Kaufman.
The Rules are based upon the results of the extensive reviews of bank records by the audit
firms mandated by the Independent Committee of Eminent Persons to carry out an investigation
of dormant accounts in Swiss banks. This investigation indicates that, as a general matter,
accounts have not been depleted by the Banks other than through the deduction of bank fees or
other charges or payments to banks' profit and loss account. These Rules take this into account
by adding back fees and charges in accordance with a standard schedule.
The CRT shall rely on these Rules to determine the amount of awards to claimants and
shall use the computer model incorporating the formulas established in these Rules to calculate
awards in individual cases. A software computer program has also been developed to implement
the mathematical calculations required by these Rules and this program will simplify and
expedite their application.
1. Scope of Decision
Paragraph 2 of this Decision of the Board defines the terms used in these Rules.
Paragraph 3, using the terms defined in paragraph 2, establishes the formula to be used by
the CRT in determining the value of dormant accounts. Paragraph 3(B) provides that, if
the current bank book value is larger than the value of an account as established under
paragraph 3(A), the former value shall prevail. Paragraph 4 establishes the rules on
application of the adjustment factors used in determining value in Paragraph 3.
2. Definition of Terms
A. Book Value ("BV"): BV shall be (i) the earliest ascertainable book value
recorded in bank records, which, in most cases, will be the book value of the
account in 1986 because prior records are unavailable; or (ii) established from
evidence presented by the claimants, the bank, or from such other sources as the
CRT may consider appropriate, for financial assets in an account or in a safe that
do not have a readily ascertainable value.
B. Total Adjusted Book Value ("TABV"): TABV is determined by adding to BV
an amount equal to the Fees Adjustment ("FA").
C. Fees Adjustment ("FA"): The FA shall be an amount estimated to be the fees
and charges deducted from an account after December 31, 1944, and up to and
including the year in which the BV is determined by applying the Schedules of
fees and charges set forth in the attached Schedule A for the specific type of
account to which fees and charges are applied (i.e., deposit, savings, depot, and
managed account fees and charges).
D. Current Value Adjustment Factor ("CVAF"): The appropriate Current Value
Adjustment Factor is an allowance for compounded investment return from the
end of 1944 to the end of 1999. The CVAF for:
(i) deposit accounts, savings accounts, depot accounts, and for safes eligible
for application of a CVAF under paragraph 4(D), shall be 10, and
(ii) Managed Accounts shall be 15.5.
E. Compounded Nominal Value Factor ("CNVF") and Original Adjusted Value
("OAV"): The CNVF is the factor derived from Swiss rates of return for savings,
depot, and Managed Accounts, to be used to discount TABV to values in 1945--the Original Adjusted Value ("OAV"). The CNVF for each year since 1945 for
savings, depot, and Managed Accounts are contained in Schedule B. No CNVF is
provided for deposit accounts since interest was not paid on such accounts to
F. Relevant Period: The Relevant Period shall be from 1 January 1933 to 31
G. Managed Account: A Managed Account shall be an account for which there is a
contract between the account holder and the bank authorizing the bank, for a fee,
to manage assets deposited with the bank on behalf of the account holder.
H. Securities Account: A Securities Account shall be an account for which there is
no contract between the account holder and the bank authorizing the bank to
manage the assets deposited with the bank on behalf of the account holder.
I. Victim of Nazi Persecution: Any individual, corporation, partnership, sole
proprietorship, unincorporated association, community, congregation, group,
organization, or other entity persecuted or targeted for persecution by the Nazi
Regime because they were or were believed to be Jewish, Romani, Jehovah's
Witness, homosexual, or physically or mentally disabled or handicapped.
3. Computed Present Account Value ("CPAV") Formula
A. The CPAV of accounts shall be established in accordance with the following
(i) determine the TABV by adding to the BV an amount equal to the FA;
(ii) determine the OAV by dividing the TABV by the CNVF for savings,
depot, and managed accounts, as appropriate, for the year for which the
BV has been established; and
(iii) determine the Computed Present Account Value ("CPAV") by multiplying
the OAV by the appropriate CVAF.
B. If the current BV of an account subject to these Rules is larger than the value of
the account as established under paragraph 3(A), the former value shall prevail
and the calculation provided for in paragraph 3(A) shall not apply.
4. Limitations on the Application of the CVAF and FA
A. The CVAF and the FA shall apply to accounts of victims of Nazi persecution
open or opened in the Relevant Period as provided in these Rules.
B. The CPAV and the FA shall not be applied by the CRT to the accounts of persons
who were not Victims.
C. Banks should seek to achieve agreement with claimants on behalf of accounts of
persons who were not Victims within the context of providing a generous
adjustment in a framework of applying commercial rates to the individual types of
accounts involved. The CRT may use its good offices to assist in achieving this
D. For (i) all financial assets in safes, (ii) securities accounts, and (iii) other accounts
for which BV is determined under paragraph 2(A)(ii), the CVAF and FA shall be
applied to such accounts in accordance with these Rules if the CRT determines
that (a) there was an extended period of no contact between the bank and the
account holder, and (b) the bank had a duty of due care to manage the assets in the
account or safe, unless special factors or extenuating circumstances justify an
adjustment of the CVAF consistent with the provisions of these Rules.
E. For an account or safe (i) with no financial assets, or (ii) with respect to which no
decision is made under paragraph 4(D) to apply the FA, and the CVAF to the
financial assets in such account or safe, the assets or the contents of the account or
safe shall be transferred to the claimant to whom an award is made.
* * *
Standard Fees and Charges
Rate per year:
Rate per year:
Total for the period 1945-1986
Maintenance Fees: Current & Similar Accounts
Maintenance Fees: Custody Accounts
Hold Mail Fee: Current & Similar Accounts
Hold Mail Fee: Savings Accounts
Fee for Numbered / Pseudonym Accounts
Safe Deposit Box Rental Fees
|COMPOUND NOMINAL VALUE FACTOR|