We believe that your bank may charge your customers pair-off fees provided in a lock-in agreement. However, we recommend that any lock-in agreements between you and your customers be signed by your customers and in writing, including any provisions requiring payment of pair-off fees.

As a national bank, your bank is permitted by OCC regulations to charge your customers non-interest fees, and the amount of such fees is a business decision to be determined “according to sound banking judgment and safe and sound banking principles.”

To ensure that your lock-in agreements and related fees are enforceable, we recommend that any lock-in agreements you have in place with your customers be in writing, including provisions requiring customers to pay pair-off fees and the circumstances in which they will be charged (along with any other fees). This will help ensure that your lock-in agreements and any associated fees are enforceable, established according to safe and sound banking principles, and recorded in the event of a later dispute.

For resources related to our guidance, please see:

• OCC Regulations, 12 CFR 7.4002(a) (“A national bank may charge its customers non-interest charges and fees, including deposit account service charges.”)

• OCC Regulations, 12 CFR 7.4002(b)(2) (“The establishment of non-interest charges and fees, their amounts, and the method of calculating them are business decisions to be made by each bank, in its discretion, according to sound banking judgment and safe and sound banking principles. . . .”)