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 foreign depositors.

F. Relevant Period: The Relevant Period shall be from 1 January 1933 to 31 December 1945.

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 steps:

(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 result.

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.

* * *



SCHEDULE A


Standard Fees and Charges

(in SFr.)






Rate per year:

1945-1979



Rate per year:

1980-1986



Total for the period 1945-1986



Maintenance Fees: Current & Similar Accounts


15



20



665



Maintenance Fees: Custody Accounts


50



50



2,100



Hold Mail Fee: Current & Similar Accounts


25



50



1,225



Hold Mail Fee: Savings Accounts


10



20



490



Fee for Numbered / Pseudonym Accounts


50



100



2,450



Safe Deposit Box Rental Fees


25



55



1,260



SCHEDULE B

COMPOUND NOMINAL VALUE FACTOR
Year Custody Savings
1945 1.020 1.020
1946 1.040 1.040
1947 1.061 1.061
1948 1.082 1.082
1949 1.104 1.104
1950 1.126 1.126
1951 1.149 1.149
1952 1.172 1.172
1953 1.195 1.195
1954 1.219 1.219
1955 1.243 1.243
1956 1.268 1.268
1957 1.294 1.294
1958 1.319 1.319
1959 1.346 1.346
1960 1.386 1.386
1961 1.428 1.428
1962 1.471 1.471
1963 1.515 1.515
1964 1.560 1.560
1965 1.607 1.607
1966 1.655 1.655
1967 1.705 1.705
1968 1.756 1.756
1969 1.809 1.809
1970 1.863 1.863
1971 1.919 1.919


1972 1.976 1.976
1973 2.036 2.036
1974 2.097 2.097
1975 2.160 2.160
1976 2.225 2.225
1977 2.291 2.291
1978 2.360 2.360
1979 2.431 2.431
1980 2.504 2.504
1981 2.579 2.579
1982 2.656 2.656
1983 2.736 2.736
1984 2.818 2.818
1985 2.902 2.902
1986 2.990 2.990
1987 3.079 3.079
1988 3.172 3.172
1989 3.267 3.267
1990 3.365 3.365
1991 3.466 3.466
1992 3.570 3.570
1993 3.677 3.677
1994 3.787 3.787
1995 3.901 3.901
1996 4.018 4.018
1997 4.138 4.138
1998 4.262 4.262
1999 4.390 4.390