HQ0423-22-R-0008 OMBP Amendment 11.docx

HQ042322R0008

SECTION SF 30 BLOCK 14 CONTINUATION PAGE

SUMMARY OF CHANGES

SECTION C - DESCRIPTIONS AND SPECIFICATIONS

The following have been modified:

PERFORMANCE WORK STATEMENT

OVERSEAS MILITARY BANKING PROGRAM (OMBP)

4 November 2022

Note: All references in Section C to minimum balances, established fees, service charges, branch locations, hours of service and various product conditional statements can be found in Section J.

C-1. OBJECTIVES

1. The overall DoD objectives for the OMBP include:

1. As permitted by Status of Forces Agreement (SOFA), other intergovernmental agreements, and/or host-country or local law and as required by military departments, providing full banking services that are comparable, in scope and cost, to those available in the CONUS to authorized individuals that include, active duty U.S. military personnel; Reservists on temporary active duty; DoD civilian employees who are U.S. citizens; U.S. citizens who are employees of all other U.S. Government departments, agencies, private organizations and non-appropriated fund instrumentalities (NAFI) carrying on functions on a DoD installation overseas; as well as authorized family members of such military and civilian employees. May provide limited services to others as identified below.

1. Improving customer service, improving products and services, and effectively and efficiently managing program costs.

1. Identifying income and cost by military departments.

1. Contractor objectives: The Contractor shall provide banking and products and services to authorized individuals stationed overseas, as contained within this Contract and subsequent modifications, at designated DoD overseas MBFs. To assure that this objective is accomplished in an efficient and effective manner, overall DoD goals for Contractor operations of the OMBP include:

1. Maximizing the use of automation in bank operations when cost effective.

1. Enhancing operational and management efficiencies and expanding revenue-producing products and services.

1. Identifying and allocating costs incurred to the banking products and services provided (profit/loss reports).

1. Standardizing and improving the usefulness of reported data.

1. Improving MBF employee effectiveness and efficiency through training programs that support technology, products, and customer service.

1. Streamlining operations (where possible) and improving efficiency.

C-2. LICENSING REQUIREMENTS

1. MBF Operations: Shall be conducted only after the Contractor receives a letter of designation by the U.S. Treasury Department as a Depository and Financial Agent of the U.S. Government. In addition, licenses or host-country approvals are required in the following areas: Germany, the United Kingdom, the Netherlands, the Republic of Korea, Japan, Italy and Diego Garcia. These requirements are identified in Section J, Attachment J-4. The Contractor will coordinate with the COR prior to contacting any host-country official concerning a banking license or host-country approvals to operate. Based on information received from the Office of the Comptroller of the Currency (OCC) no additional bank licensing requirement outside the Contractor’s home state banking license is required (for federally chartered banks) to operate the Home Office within the Continental United States.

1. As a matter of policy, any contact with a host-country official concerning a license or approval to operate will be accomplished by the appropriate military Commander, unless advised otherwise by the COR.

1. Bonding/Capitalization Requirements: With respect to any bonding/capitalization requirements which may require a deposit of monies and a commitment of assets, or a compensating balance or similar requirements that may be part of the license application process, the U.S. Government's position is that such requirements shall be waived by the host country due to the unique nature of the U.S. Overseas Military Banking Program. The Contractor is directed not to meet any such bonding/capitalization requirements, which would otherwise be applicable to financial institutions wishing to operate in the host country. These matters will be reported to the COR for resolution. Negotiations with the host-country authorities, however described, relative to any bonding and capitalization requirements, which may be required, is the sole responsibility of the U.S. Government and not the Contractor. The Contractor is prohibited from negotiating any agreements with foreign financial institutions or governments (correspondent bank relationships are excluded from this restriction). Any delay in the performance of the contract incident to such negotiations is expressly deemed to be an excusable delay beyond the control of the Contractor and without fault or negligence of the Contractor. The U.S. Government is expressly and solely responsible for all direct or consequential damages to the program or customers of the Overseas Military Banking Program flowing from the implementation of this paragraph; provided, however that nothing in this provision shall be deemed to create an obligation in advance of appropriations in violation of law. The Contractor (and not the Government) would be responsible for any and all liabilities that resulted from unauthorized contact with financial institutions and governments prohibited above.

C-3. DESIGNATION OF MILITARY BANKING FACILITIES

1. A full-time MBF is one that operates a minimum of five days per week, including any approved evening and weekend service.

1. A part-time MBF is one that operates less than five days per week, and is normally supported by a nearby full-time location.

C-4. DESIGNATED LOCATIONS

1. Retail banking services shall be provided at those overseas locations designated in Section J, Attachment J-1.

1. The Contractor shall establish a consolidated home office for the OMBP within the Contiguous United States (CONUS). The home office will serve as the main point of contact for the DFAS Program Management Office and Contracting Officer on all issues related to the contract. The location will determine which local DCMA and DCAA offices will be assigned administration duties as well. The home office shall include all key personnel, other key managers, all backroom support functions and staff to run and manage the overall banking operations. Reference Section J, Attachment J-5, Key Personnel. No additional funding will be allowable for facility or office space outside the home office.

C-5. AUTHORIZED CUSTOMERS

The Contractor shall provide banking services to the clients defined below:

1. Full banking services. Authorized individuals include, active duty U.S. military personnel; DoD civilian employees who are U.S. citizens; U.S. citizens who are employees of all other U.S. Government departments, agencies, and NAFI carrying on functions on a DoD installation overseas; as well as authorized family members of such military and civilian employees. In addition, DoD Component Commands may approve banking services for other individuals when they qualify for individual logistic support under regulations of the appropriate military service which is not precluded by Status of Forces Agreement (SOFA), other intergovernmental agreements, or host-country or local law.

1. Limited banking services. Authorized individuals include active duty U.S. military personnel and U.S. Government civilian personnel on temporary duty; non-accountholder U.S. citizens who are employees of U.S. Government departments, agencies and NAFI and who are not on temporary duty but are at a DoD installation due to their official U.S. Government mission; U.S. Reserve military personnel and their family members, where the Reservist is on temporary active duty tours or annual training for less than 180 days; active duty personnel on authorized leave; NATO Forces (see C-6-4-2); Foreign citizen employees of U.S. contractors at Guantanamo Bay Naval Base, Cuba (C-6-4-3); and U.S. military retirees residing overseas. They may receive limited banking services where not precluded by SOFAs, other intergovernmental agreements, or host-country or local law. Specific banking services authorized for U.S. military retirees are listed by country in Section J, Attachment J-9. Services for the listed categories above, unless specifically identified elsewhere within this contract, will include foreign currency conversions, other cash transactions, and automated teller machine (ATM) usage.

1. Military Disbursing Officers (DO) duly designated within the DoD.

d. NAFI and Employees.

1. Other DoD instrumentalities as defined and authorized under the regulations of the DoD or a DoD component.

1. Employees of NAFI may be authorized banking services when they qualify for individual logistical support under subparagraph (a) above.

e. Private Organizations and Employees

1. Private organizations as defined and authorized to function on DoD installations under the regulations of the DoD or a DoD component.

1. Employees of private organizations may be authorized banking services when they qualify for individual service under subparagraph (a) above or when they qualify for individual logistic support under regulations of the appropriate DoD component.

f. DoD Contractors and Contractor Employees

1. Contractors, colleges, and universities may be permitted to establish accounts in their corporate name where not precluded by SOFAs, other intergovernmental agreements, host-country or local law. A request to establish an account(s) will be coordinated with the appropriate Major Command Staff Judge Advocate prior to approval to open the account.

1. Employees of DoD contractors, colleges, and universities may be authorized banking services when they qualify for individual logistical support under subparagraph (a) above.

1. Encashment of host-nation employee government paychecks for non-U.S. personnel who are employed at the installation on which the MBF is located, or employed at a nearby installation without a MBF, when approved by the theater commander. Government paycheck is defined as payroll and travel checks issued by both appropriated fund and non-appropriated fund instrumentalities.

C-6. PRODUCTS AND SERVICES

1. The Contractor shall provide such banking products and services as are designated herein. During the period of performance, products and services may be established, eliminated, or otherwise modified, as determined by the COR, subject to all requirements of the Contractor’s foreign banking licenses and approvals (see C-6-5). When a change is approved, the Contracting Officer will modify the Contract to incorporate the approved change(s) into the Contract. The Contracting Officer, or COR as directed by the Contracting Officer, will notify the Contractor in writing of the Contracting Officer’s approval of the change.

1. Prior to providing any authorized services, the Contractor will obtain, from all authorized customers, applicable identification numbers, such as employer identification number (EIN) and taxpayer identification number (TIN).

C-6-1. INDIVIDUALS: PRODUCTS AND SERVICES

1. Current Products and Services. The following products and services shall be made available to authorized individuals:

1. Regular checking account services.

1. Interest bearing checking accounts.

1. Savings accounts.

1. ATM and Debit cards, to include EMV chip card.

1. Certificates of deposit (CD).

1. Check cashing as authorized.

1. Foreign currency drafts (where available).

1. Cashier’s checks and money orders.

1. Personal loans.

1. Sale and repurchase of local currency, and when permitted by the host country and approved by the appropriate DoD component military command, sale and repurchase of currency of other countries. All sales shall be for U.S. dollars.

1. Direct deposits.

1. Bank by mail.

1. Incoming and outgoing collections (bank-to-bank transfers).

1. Incoming and outgoing wire transfers to U.S. bank accounts, Euro, and GBP wires.

1. Access to MBF ATMs for the following:

0. Deposits (limited locations), withdrawals, account-to-account transfer, as well as balance inquiries for MBF accountholders.

0. Cash withdrawals and balance inquiries, through approved ATM networks, for both accountholders and non-accountholders.

0. Cash advances from credit cards through approved ATM networks.

1. Automatic transfers between accountholder’s accounts.

1. Line of credit.

1. Overdraft protection.

1. Overdraft protection with a savings account transfer to cover a checking account overdraft.

1. Overdraft protection with a line of credit.

1. The overdraft protection credit product with a $500.00 minimum limit and $1,500.00 maximum limit was discontinued as of March 1, 2010. However, it still applies to accounts established with that type of overdraft protection prior to March 1, 2010.

1. Acceptance of rent and utilities payments (where available).

1. Local currency checking accounts (where available).

1. Standing payment orders in foreign currency to include rent, utility, and telephone payments (where available).

1. Yen Paper Drafts (Japan only).

1. Within the U.S. a toll-free customer service line for client balance and information inquiries. The Government may also provide DSN lines.

1. Miscellaneous bill paying service in local currency by EFT where permitted by the host country.

1. Point of Sale (POS) electronic debit transactions for OMBP accountholders utilizing the customer issued ATM or Debit cards.

1. Interactive Voice Response Unit (worldwide).

1. Online Banking with Bill Pay.

1. Available for US dollar payments to US domiciled payees.

1. Available for Euro payments to Euro-accepting payees.

1. Available for Great Britain Pound payments to GBP-accepting payees.

1. Mobile Phone Banking Capability – Current capability includes multi-mode mobile banking, such as text messaging (SMS), mobile browsers, and downloadable smart-phone applications (iPhone, Blackberry and Windows/Android). Mobile banking is available in Diego Garcia and Kwajalein on a limited basis with current cell service or through WIFI. Current functionality allows users to view accounts (balances and transactions), pay bills, and transfer funds between Community Bank accounts and transfer funds externally if external payee account has been previously established in Online Banking.

1. Coin Counter / Sorter Services (where available)

1. Housing Payments (where available).

1. Loan closing/payout process for approved loan requests (except LOCs) can be completed without the borrower(s) being present in a banking center. This will be accomplished with a secured transmission of loan documentation to borrower(s) for review, signature, and return. Upon return of documentation and validation of signature(s), loan proceeds will be made available to the borrower(s).

C-6-2. MILITARY DISBURSING OFFICERS PRODUCTS AND SERVICES

The following products and services shall be made available to military DOs in accordance with Section C-5.c.:

0. Receipt of deposits for credit to the U.S. Treasury, creating electronic images of both sides of negotiable instruments and maintaining the imaged records for at least three years.

0. Provide U.S. currency.

0. Provide local and foreign currency.

0. U.S. dollar custody account agreements as approved by the COR, where the bank is the custodian of the funds.

0. Local (host country) currency checking account services, when permitted by the host country and the COR.

0. Third-country currency Limited Deposit Accounts (LDA), when permitted by host country and the COR.

0. EFTs or other bank transfers in U.S. Dollars, host country, and third-country currencies.

0. Bank acceptance of EFT data.

C-6-3. NONAPPROPRIATED FUND INSTRUMENTALITIES (NAFIs) PRODUCTS AND SERVICES

The following products and services shall be made available to NAFI in accordance with Section C-5.d..:

1. Checking account services in U.S. dollars, local currency, and third-country currencies, where available.

1. U.S. dollar checking and interest bearing accounts when allowed by regulation.

1. Provide U.S. currency.

1. Provide local and foreign currency.

1. U.S. dollar savings account.

1. Certificates of deposit.

1. Night depositories (where available).

1. EFTs or other bank transfers in U.S. dollar, host-country, and third country currencies.

1. Disaster Relief Donation Account: This account is established for the sole purpose of accepting deposits for National emergency disaster relief efforts such as a hurricane, typhoon, tornado or other natural disaster. The disaster relief donation account can be established to receive monetary donations for a specified period (60 days) and is a non-Interest bearing checking account with no monthly service charge. No checks or debit cards will be issued for this account. Disaster relief accounts must be approved by the Installation Commander and will require two signatures to withdraw funds from the account. Upon the organization’s request, the Bank will issue a cashier’s check or complete a wire transfer at no cost to the designated relief organization.

1. Petty Cash services.

The following products and services shall be made available to private organizations authorized in accordance with Section C-5e.:

1. U.S. dollar checking account services, including interest bearing checking accounts when allowed by regulation.

1. Local currency checking accounts, where authorized by the host country and approved by the COR.

1. Savings accounts.

1. Certificates of deposits.

1. U.S. and local currency when needed for authorized accommodation sales or payroll or vendor payments.

1. Disaster Relief Donation Account: This account is established for the sole purpose of accepting deposits for National emergency disaster relief efforts such as a hurricane, typhoon, tornado or other natural disaster. The disaster relief donation account can be established to receive monetary donations for a specified period (60 days) and is a non-Interest bearing checking account with no monthly service charge. No checks or debit cards will be issued for this account. Disaster relief accounts must be approved by the Installation Commander and will require two signatures to withdraw funds from the account. Upon the organization’s request, the Bank will issue a cashier’s check or complete a wire transfer at no cost to the designated relief organization.

1. EFTs or other bank transfers in U.S. dollars and host country currencies.

1. Online Banking service.

C-6-4-2. NATO FORCES IN EUROPE

a. Currency conversions of up to 250 U.S. Dollars (USD) equivalent per day.

b. Purchase of a money order or cashier’s check payable to a U.S. Government agency (Germany only) without a U.S. Dollar (USD) limitation.

C-6-4-3. FOREIGN CITIZEN EMPLOYEES OF U.S. CONTRACTORS AT GUANTANAMO BAY NAVAL BASE, CUBA

a. The Contractor shall provide limited banking services to foreign citizen employees of U.S. contractors supporting Guantanamo Bay Naval Base, Cuba.

b. Services are limited to ATM Only accounts with the additional services of check cashing, financial instruments, and wire transfers.

1. A monthly charge shall be made on ATM Only accounts that do not maintain the established minimum daily balance.

1. A processing fee per employee shall be assessed and collected from the U.S. Contractor submitting the foreign citizen payroll for deposit to their account.

1. A charge shall be made for cashing checks.

1. A charge shall be made for the sale of financial instruments.

1. A charge shall be made for wire transfers.

1. A charge shall be made for all over the counter transactions.

1. A charge shall be made for each ATM card replacement.

C-6-5. CHANGES IN PRODUCTS AND SERVICES

1. Upon contract award and during the period of performance, products, services, and MBF locations may be established, eliminated, or otherwise modified (See Section B-3, “Changes,” and Section I Clause 52.243-2, “Changes – Cost-Reimbursement” and Section G-15. The COR may request the Contractor to develop plans and proposals to extend products and services in either current foreign operating locations (countries) identified in Section J, Attachment J-1, or for potential future expansion of operations to other foreign locations, as directed by the COR. The COR will recommend approval of changes to the Contracting Officer. The Contracting Officer will notify the Contractor in writing and incorporate changes into the Contract by modification.

1. Throughout the course of contract performance the Contractor shall explore the costs and benefits of providing new products and services. When such additional service options are identified, a proposal citing the costs and benefits should be submitted to the COR for consideration. Prior to implementation, the Contracting Officer will notify the Contractor in writing and incorporate into the Contract by modification.

1. The Contractor shall monitor comparable products and services for major U.S. banks and overseas defense credit unions.

1. The Contractor’s written proposal shall be forwarded to the following):

1. Procuring Contracting Officer (PCO)

1. Administrative Contracting Officer (ACO)

1. Contracting Officer’s Representative (COR)

1. The Contractor's notification shall:

1. Identify both the current products and services and the proposed changes;

1. Indicate the estimated financial impact and staffing requirements of the proposed changes to the program;

1. Identify comparable products and services at major U.S. banks and overseas defense credit unions, and;

1. Identify system changes and client notification requirements.

1. The COR shall accept or decline the Contractor’s written proposal within a reasonable period of time. The Contracting Officer, or the COR, as directed by the Contracting Officer, shall notify the Contractor in writing and incorporate approved changes into the Contract by modification.

1. Innovations and Technology and Products/Services Refresher – The Contractor shall conduct and provide the Government with a technology and products/services review annually. This technology review will provide a description of recent changes/developments in the banking industry, such as technological advancements and market changes in products/services improvements beyond that provided under this PWS, which might then be available. The review will identify any changes in the industry, if applicable, and an assessment of potential applicability/implementation for Community Bank. In the event of recommended changes, the Contractor shall provide a cost estimate which delineates the changes to the cost proposal, (all direct, other direct, and indirect costs), which would apply if the Government chooses these improvements through issuance of a Technical Direction Letter (TDL). Moreover, the recommendation shall include a timeline for implementation. When such direction is issued, the Contracting Officer will incorporate the applicable changes into the contract by modification, although the applicable changes are effective in accordance with guidance contained within the TDL.

1. The Government may request a change in product, service, or technological innovation during the life of the Contract. Modifications or TDLs may be issued to incorporate technological and products/services related changes.

1. Any changes implemented under this paragraph, C-6-5, may not result in any additional contract fixed fee to the Contractor, as determined by the Contracting Officer. Any increase in fixed fee and/or cost to the program resulting from any additional product or service must be proposed by the Contractor in advance and approved by the Contracting Officer prior to beginning the work.

C-7. FEES FOR PRODUCTS AND SERVICES

Contractor service charges for banking products provided herein shall be as set forth in Attachment J-6.

C-7-1. APPLICABILITY OF CHARGES

The charges, fees, rates, and minimum balances discussed in Section C-7 and set forth in Section J, Attachment J-6, shall be assessed, or otherwise applied, to authorized customers of the MBF. During the period of performance, allowable service charges may be established, eliminated, or otherwise revised as determined by the COR via TDL. When such direction is issued, the Contracting Officer will incorporate the applicable changes into the Contract by modification, although the applicable changes are effective in accordance with guidance contained within the TDL.

C-7-2. CHECKING ACCOUNT POLICY

a. REGULAR CHECKING

1. No monthly fee or charges shall be made on personal accounts.

1. There is no minimum opening balance.

1. A charge shall be made if an account is closed within 90 days of opening the account. The Contractor may waive this charge on a case-by-case basis.

1. A charge shall be made for an individual accountholder stop-payment order applicable to a check or a consecutive series of checks.

1. A charge shall be made for each stop-payment order for each check, or consecutive series of checks, written by a NAFI or private organization accountholder.

1. A charge shall be made for each overdraft on a personal checking account. The charge does not apply when a customer is signed up for overdraft protection and has enough funds to cover the charge in the linked deposit account.

1. The Contractor shall have the authority to suspend banking privileges for any customer that consistently overdraws their account.

1. Separate notification shall be provided to customers for all dishonored checks.

1. Interest shall not be paid on balances in regular checking accounts.

1. A charge for check order costs shall be made. All check starter kits shall be issued without charge.

1. No charges shall be made for accounts established by military command or installation officials for the purpose of holding funds received from patients or prisoners.

1. The Contractor shall use the account analysis fees identified in Section J, Attachment J-6a to determine charges for NAFI and other organizational accounts. (This analysis shall include a charge for returned checks or dishonored checks, and shall be commensurate with the costs of services rendered and not covered by the average daily account balance.)

1. If under analysis, a NAFI, private organization, or private contractor shall be assessed a charge of the prime rate plus one percent for the amount of the overdraft, overdrawn balance, or uncollected funds at the discretion of the Contractor.

1. Automatic debits and transfers between MBF accounts are available to accountholders.

1. No charges shall be made for private organization checking accounts designated by military command or installation officials as being a Family Readiness Group fund.

b. INTEREST BEARING CHECKING ACCOUNTS

1. During any month in which the account balance falls below the established minimum balance, a monthly charge shall be made on the account.

1. There is a minimum opening balance.

1. A charge shall be made if an account is closed within 90 days of opening. The Contractor may waive this charge on a case-by-case basis.

1. A charge shall be made for each stop-payment order for a check, or a consecutive series of checks from individual, NAFI, and organizational accounts.

1. A charge shall be made for each overdraft of a personal checking account. The charge does not apply when a customer is signed up for overdraft protection.

1. The Contractor shall have the authority to suspend banking privileges for any customer that consistently overdraws their account.

1. A charge for check order costs shall be made. All check starter kits shall be issued without charge.

1. Interest shall not accrue when an account balance falls below the established minimum balance during the statement period.

1. No charges shall be made for accounts established by military command or installation officials for the purpose of holding trust monies received from patients or prisoners.

1. The Contractor shall use the account analysis fees identified in Section J, Attachment J-6a to determine charges for NAFI and other organizational accounts (this analysis shall include a charge for uncollected checks and shall be commensurate with the cost of services rendered and not covered by the average daily account balance).

1. If under analysis, a NAFI, private organization, or private contractor shall be assessed a charge of the prime rate plus one percent for the amount of the overdraft, overdrawn balance, or uncollected funds at the discretion of the Contractor.

1. Interest rates paid shall be as provided for in accordance with the provisions of Section C-8-2. No interest is paid when the account balance falls below the established minimum balance.

1. Automatic debits and transfers between MBF accounts are available to accountholders.

c. DISHONORED CHECKS

1. The Contractor will prepare a written demand letter requesting payment, plus any charges, within 30 days.

1. If payment is not received by the requested date, the debt will be forwarded to DFAS for collection.

1. A charge shall be made for each dishonored check written on a MBF account.

1. For an accountholder, each check deposited or cashed which is subsequently dishonored will be charged back to the account and a returned check charge will be assessed.

1. The amount of a dishonored check, plus a returned check charge, will be recovered from any accounts that the accountholder may have with the Contractor.

1. For organizational account services charged through account analysis, a charge shall be made to the NAFI or private organization that deposited an item determined to be non-collectible.

C-7-3. SAVINGS ACCOUNT POLICY

1. No monthly fee or charges shall be made on savings accounts.

1. Interest rates paid shall be as provided for in accordance with the provisions of Section C-8-2.

1. There is no minimum opening balance.

1. A charge shall be made if a regular savings account is closed within 90 days of opening the account. The Contractor may waive this fee on a case-by-case basis. There is no charge for a minor account.

1. A charge shall be made for each savings account withdrawal that creates, or increases, an overdraft. This applies to both regular and minor savings accounts.

1. The Contractor shall have the authority to suspend banking privileges for any customer that consistently overdraws their account.

1. The Contractor shall have the authority to close a savings account for any customer that consistently uses a savings account as a transaction account.

1. Charges for savings account kit orders: A charge shall be made for savings account kits. This applies to both regular and minor savings accounts. The savings account starter kit shall be issued at no cost.

1. No charges shall be made for accounts established by military command installation officials for the purpose of holding funds received from patients or prisoners.

1. Automatic debits from a MBF account shall be made available for MBF loan payments and standing payment orders (where available).

1. Automatic transfers between MBF accounts are available to accountholders.

1. No charges shall be made for accounts established for the sole purpose of loan repayment.

C-7-4. INACTIVE AND DORMANT ACCOUNT POLICY

1. Checking and Savings accounts, including local currency checking accounts, are considered inactive when no customer-initiated activity has occurred for a period of time based on state-specific guidelines. Inactive accounts are subject to a monthly charge; however, no charge shall be made on inactive accounts where the established minimum balance is on deposit. In addition, there will be no charge for minor savings, officially designated missing in action (MIA), prisoner of war (POW), or deceased accountholders. Charges shall not continue to be levied once an account balance is depleted. The Contractor may waive the monthly charge on a case-by-case basis.

1. By law, accounts are considered dormant when no customer-initiated activity has occurred during the preceding 12 months. Before an account becomes dormant, but no later than the eleventh month of inactivity, the Contractor will provide written notification of the approaching account dormancy to the accountholder’s last known address. No monthly charge is collected on dormant accounts.

1. Dormant accounts will be escheated in accordance with applicable Federal and State banking regulations.

C-7-5. AUTOMATED TELLER MACHINE (ATM) AND DEBIT CARDS POLICY

1. A Checking or savings account is required to receive an ATM card. A Checking account is required for a Debit Card. All ATM and Debit cards must be Europay/Mastercard/VISA (EMV) compliant Chip and Signature enabled. The Debit Card is not available to Savings or Sterling Account only customers.

1. There is no charge for issuing ATM or Debit cards.

1. A charge shall be made on overdrawn accounts and for each withdrawal that creates or increases an overdraft. The charge does not apply on the checking account when a customer is signed up for overdraft protection and has enough funds to cover the charge in the linked deposit account.

1. Maximum daily withdrawal limit is prescribed for cash withdrawals at an ATM or POS terminal.

1. A charge shall be made for an ATM balance inquiry transaction for accountholders using an ATM outside the OMBP ATM network.

1. A charge shall be made for an ATM account transfer transaction for accountholders using an ATM outside the OMBP ATM network.

1. A charge shall be made for an ATM cash withdrawal transaction for accountholders using an ATM outside the OMBP ATM network.

1. A charge shall be made for all other ATM transactions for accountholders using an ATM outside the OMBP ATM network.

1. There is no charge for accountholders/non-accountholders to process transactions using an OMBP ATM.

1. ATM and Debit cards shall provide for direct debit to accountholder accounts for retail point of sale (POS) transactions. There shall be no charge for POS transactions.

C-7-6. CERTIFICATES OF DEPOSIT (CD) POLICY

1. All CDs purchased by individuals shall be denominated in U.S. dollars.

1. CDs shall be offered with a variety of maturity periods, between three months and 36 months.

1. CDs may be redeemed prior to maturity, subject to early withdrawal penalty equal to 30 days interest for CDs with a maturity period of 12 months and 90 days interest for CDs exceeding one-year maturity. Early withdrawals and early withdrawal penalties must be consistent with Internal Revenue Service (IRS) guidance.

1. Individuals that purchase CDs may continue to hold items until maturity regardless of whether they transfer from an overseas assignment.

1. CDs for organization accounts may be issued in U.S dollars, local and foreign currency where not precluded by SOFAs, or other intergovernmental agreement, host-country, or local law.

1. Interest rates offered on CDs should be comparable with those offered by U.S. financial institutions. The Contractor may take advantage of investment opportunities, which provide greater yields. CDs will be managed under a separate, stand-alone, managed asset and liability program resulting in net income to the Contract.

C-7-7. CHECK CASHING SERVICES POLICY

Checks or negotiable instruments shall be cashed or accepted for deposit or collection when presented by the drawer or payee named therein.

1. Accountholders and Non-accountholders. The following shall be cashed when presented by an authorized customer: Personal checks drawn on a MBF account, U.S. Federal, State, and local tax refund checks, or other U.S. Government checks; checks or negotiable instruments drawn on financial institutions providing banking services at DoD installations in Spain, and Turkey; host nation government paychecks for non-U.S. personnel who are employed at the installation on which the MBF is located, or employed at a nearby installation without a MBF when approved by the theater commander and not restricted by the SOFA or local law.

1. Accountholders.

1. No charge shall be made for checks or negotiable instruments accepted for deposit to a checking or savings account. A hold for a minimum of 5 business days may be placed from the date of deposit, or longer if the bank determines it to be necessary.

1. No charge shall be made for cashing personal checks or checks drawn on MBF accounts administered by the Contractor.

1. Checks that are drawn on other financial institutions will be cashed without charge at the discretion of the Contractor.

1. Checks payable in U.S. dollars drawn on banks outside the U.S. in U.S. dollars with a “MICR line” will be cashed or deposited at the discretion of the Contractor.

1. Checks payable outside the U.S. denominated in foreign currency or local currency will be cashed at the Contractor’s discretion, and all charges incurred by the bank in processing these financial instruments will be passed on to the customer.

1. There is no charge for cashing U.S. Federal, State, or local tax refund checks or other U.S. Government checks.

1. A charge shall be made for cashing all yen drafts (Japan only). Other financial institutions receiving bank charges incurred by the MBF for cashing yen checks will be passed on to the customer in addition to the check cashing charge.

1. Non-accountholders

1. No charge shall be made for cashing checks drawn on a MBF account.

1. No charge shall be made for cashing U.S. Federal, State, or local tax refund checks or other U.S. Government checks.

1. A charge of one percent of face value, or total value if multiple checks (subject to $3 minimum and $20 maximum):

1. Money orders and official checks. Official Checks greater than $5,525 will be accepted as collection items only and will be subject to additional collection charges as set forth in Section J, Attachment J-6.

1. Checks drawn on financial institutions providing banking services at DoD installations not to exceed $500 per day.

1. Host-nation government paychecks for non-U.S. personnel who are employed at the installation on which the MBF is located, or employed at a nearby installation without a MBF, when approved by the theater commander.

d) A charge shall be made for cashing all yen drafts (Japan only). Other financial institutions receiving bank charges incurred by the MBF for cashing yen checks will be passed on to the customer in addition to the check cashing charge.

e) Checks denominated in a foreign currency and payable outside the U.S. will be accepted for collection only. All charges incurred by the bank in processing these financial instruments will be passed on to the customer as set forth in Section J, Attachment J-6.

1. Morale, Welfare, and Recreation (MWR) Korean local national employees at the Fleet Activities Chinhae, Korea, are authorized for check cashing transactions at the DoD Community Bank, acting only on behalf of the MWR at Chinhae in order to meet its daily cash needs. This applies only to those local nationals that have been authorized in writing by the Commander Navy Region, Korea MWR, and with proper identification for each transaction.

C-7-8. SALE OF CASHIERS CHECKS OR DRAFTS, AND MONEY ORDERS POLICY

1. A charge shall be made for the sale of U.S. dollar cashiers’ checks.

1. A charge shall be made for cashiers’ checks and bank drafts issued in host or third-country currencies.

1. A charge shall be made for dollar and local currency cashiers’ checks drawn payable to base/community morale-support funds for relief from Germany ad valorem taxes (Germany only) for accountholders and non-accountholders.

1. Cashiers’ check fees will be waived for Army Post Office (APO) or Fleet Post Office (FPO) custodians for remitting postal receipts.

1. A charge shall be made for the sale of money orders.

1. Cashiers’ check fees will apply for all transactions except when disbursing loan proceeds or issuing a check for account closures, including proceeds from redeemed certificates of deposit.

C-7-9. PERSONAL LOANS POLICY

Types of personal loans: signature loans, collateral loans, lines of credit, and overdraft protection (accountholders only).

1. LINE OF CREDIT AND OVERDRAFT PROTECTION.

1. Interest rates charged for simple interest loans shall be as provided for in accordance with the provisions of Section C-8-2.

1. For simple interest loans, interest will continue to accrue on past due amounts at the contracted rate. The Contractor shall charge a late payment fee on all past due amounts. The late fee is calculated as a percentage of the payment with an established minimum and maximum.

1. For a line of credit (revolving credit line), the minimum and maximum credit line will be within the terms and conditions prescribed. The credit line cannot be exceeded, unless interest accrued brings the total above the limit. The annual percentage rate, credit limits, and minimum monthly payment percentage are established by the COR via TDL.

1. The overdraft protection credit product with a $500.00 minimum limit and $1,500.00 maximum limit shall not be offered on checking accounts beginning on March 1, 2010. For existing accounts established with this type of overdraft protection prior to March 1, 2010, the minimum and maximum amounts established will apply. If an overdraft protection limit is exceeded and an item is paid, a charge will be made against the account in addition to the standard interest charge.

1. Loan conditions and collection policies and practices shall be consistent with applicable Federal statutes and regulations.

1. Non-payment of loans due to the death of a borrower or co-borrower shall be processed by the Contractor in accordance with C-10-1.b.

1. SIGNATURE AND COLLATERALIZED LOANS

1. Interest rates charged for simple interest loans shall be as provided for in accordance with the provisions of Section C-8-2.

1. For simple interest loans, interest will continue to accrue on past due amounts at the contracted rate. The Contractor shall charge a late payment fee on all past due amounts. The late fee is calculated as a percentage of the payment with an established minimum and maximum.

1. For an unsecured signature loan (fixed term), the Contractor will offer loans within the terms and conditions specified.

1. The term of the loan must qualify under the DoD service retention schedules in accordance with Section J, Attachment J-8.

1. For a new auto loan, the maximum term is 72 months and the maximum loan amount is 100 percent of the lesser of the purchase price or Manufacturer’s Suggested Retail Price (MSRP).

1. For a used auto loan the maximum term is 60 months and the maximum loan amount is 100 percent of the lesser of the purchase price or National Auto Dealer Association (NADA) retail value.

1. For a new motorcycle loan, the maximum loan amount is 100 percent of the lesser of the purchase price or MSRP. The maximum term is 60 months.

1. For a used motorcycle loan on models between 1 and 5 years old, the maximum loan amount is 75 percent of the lesser of the purchase price or the NADA retail value. The maximum term is 36 months.

1. For CD secured loans, the maximum term and the maximum credit are based on the value and term of the CD.

1. If an authorized customer is not physically in an area serviced by a MBF, a loan may be granted by mail. Credit applications may be taken by telephone, online or by mail.

1. Requirements for cosigners shall be based on an applicant's financial status.

1. Loan repayment schedules and terms:

1. Shall provide for monthly repayment on an installment basis.

1. Shall require repayment by regular periodic deduction from a MBF account or other financial instrument.

1. May extend beyond a borrower's date of permanent change of station to provide the borrower access to repayment schedules regularly offered by the Contractor.

1. Shall not extend past the borrower’s anticipated service separation date based on Retention Schedule Guidelines (See Attachment J-8).

1. Loan conditions and collection policies and practices shall be consistent with applicable Federal statutes and regulations.

1. Non-payment of loans due to the death of a borrower or co-borrower shall be processed by the Contractor in accordance with C-10-1(b).

1. Loan approval will not be based on an applicant’s Date Eligible for Return from Overseas (DEROS). If otherwise qualified for a loan, the maximum repayment terms can extend beyond the applicant’s departure from the overseas location.

1. The Contractor shall conduct two reduced-rate secured loan promotions, one in the Spring and another in the Fall. Promotional rates shall be approved by the COR, in accordance with paragraph C-8. Each secured loan promotion shall have a two-month duration. With prior approval from the COR, the Contractor is authorized to sponsor new car sales events.

C-7-10. OTHER MISCELLANEOUS CHARGES POLICY

1. Accountholders shall not be charged for each unencoded check and/or withdrawal slip used to withdraw funds from an account.

1. A charge shall be made for the second and each subsequent bank statement reconciliation performed by the Contractor provided no bank error is involved. This charge can be waived by the Contractor on a case-by-case basis.

1. A charge shall be made for each copy of a bank statement when the requested statement is not more than 6 months old. This charge can be waived by the Contractor on a case-by-case basis. There is no charge for statements obtained through online banking.

1. A charge shall be made for each copy of a bank statement when the requested bank statement is more than 6 months old. This charge can be waived by the Contractor on a case-by-case basis. There is no charge for statements obtained through online banking.

1. There is no charge for screen print statement copies.

1. A charge per item shall be made for each copy of a deposit slip, withdrawal slip, canceled check, or other document. Charges shall be waived when an accountholder shows documentation from the U.S. IRS requiring substantiation under IRS tax audit proceedings. There is no charge for statements obtained through online banking.

1. A charge shall be made for each copy of a requested EURO denominated check that has been truncated by the German banking system (Germany only).

1. For incoming wire transfers, there is no charge for accountholders. A charge shall be made for outgoing wire transfers made by accountholders. A charge shall be made for incoming and outgoing wire transfers for non-accountholders. Applicable foreign currency wire fees will be passed on to the customer (accountholder and non-accountholder).

1. There is no charge for transfer of funds between MBF banks.

1. No charge shall be made for the redemption of U.S. savings bonds.

1. Federal Deposit Insurance Corporation (FDIC) insurance premiums shall be assessed on all MBF NAFI and organizational accounts subject to account analysis.

1. A charge shall be made for miscellaneous electronic local currency payments.

1. The Contractor shall perform an account analysis on those NAFI and other organizational accounts that have the types of activity, along with the corresponding transaction volumes, to warrant being placed on analysis. Standard banking industry analysis modeling tools will be used in determining charges and appropriate corresponding balances.

C-7-11. LOCAL CURRENCY INDIVIDUAL CHECKING ACCOUNTS POLICY

This Section is only applicable to the British pound sterling checking accounts.

1. There is no monthly charge on local currency individual checking accounts.

1. A minimum opening balance of £25 is required.

1. A charge shall be made if an account is closed within 90 days of opening the account. This charge can be waived by the Contractor on a case-by-case basis.

1. The Contractor shall charge for each of the following services and products: stop payment; and for each overdraft.

C-7-12. SALE AND REPURCHASE OF LOCAL AND FOREIGN CURRENCIES POLICY

1. Acquisition Rate: The acquisition rate is the rate at which the MBF procures local and foreign currency for its use. For establishing the Euro to U.S. dollar acquisition rate, the rate will be calculated based on the Contractor’s average daily interbank costs.

1. Official Rate: The official rate is the rate at which the MBF sells local and foreign currencies to military DOs for official uses exclusive of resale. Unless otherwise approved by the COR, this shall be at the acquisition rate. No commission charges will be assessed to military DOs for the purchase of local and foreign currencies for “Official Use.”

1. Accommodation-Rate: The accommodation rate is the rate at which the MBF sells local and foreign currencies to individuals and to military DOs for resale to individuals. The rate shall not be less than 2.5 percent less than the acquisition rate. In Euro currency countries where there is no MBF, the rate at which the Contractor sells local and foreign currency to the military DOs for resale shall be the accommodation rate. In all other non-Euro currency countries where there is no MBF, the rate at which the Contractor sells local currency to the military DOs for resale shall be the official rate.

1. Re-conversion Rate: The re-conversion rate is the rate at which the MBF purchases local and foreign currencies from authorized individuals and/or organization. The rate shall not be less than 2.5 percent more than the acquisition rate.

1. Bulk/Organization Rates: Both of these rates are contingent upon local and foreign currency credit agreements between the Contractor and the purchasing activity.

1. Bulk Rate: The bulk rate is the rate at which the MBF sells local currencies to NAFI, defense credit unions and private organizations for local payroll and vendor payments that total over $1 million monthly. This rate shall not be less than .03 percent (.0003) more than the acquisition rate. For NAFI Euro requirements, the rate will be increased by a factor of .01 percent (.0001).

1. Organization Rate: The organization rate is the rate at which the MBF sells local currencies to NAFI, defense credit unions, and private organizations for local payroll and vendor payments that total under $1 million monthly. This rate shall not be less than .5 percent (.005) more than the acquisition rate. For NAFI Euro requirements, the rate will be increased by a factor of .01 percent (.0001).

1. Wholesale Rate: The wholesale rate is the rate…