(a) Notice to appropriate federal banking agency.
(1) An insured depository institution which
proposes to close any branch shall submit a notice of the proposed
closing to the appropriate Federal banking agency not later than the
first day of the 90-day period ending on the date proposed for the
closing.
(2) A notice
under paragraph (1) shall include—
(A) a detailed statement
of the reasons for the decision to close the branch; and
(B) statistical or other
information in support of such reasons.
1-401.41
(b) Notice to customers.
(1) An insured depository
institution which proposes to close a branch shall provide notice
of the proposed closing to its customers.
(2) Notice under paragraph (1) shall consist
of—
(A) posting of a notice in a conspicuous
manner on the premises of the branch proposed to be closed during
not less than the 30-day period ending on the date proposed for that
closing; and
(B)
inclusion of a notice in—
(i) at least one of any regular account statements
mailed to customers of the branch proposed to be closed, or
(ii) in a separate mailing,
by not later than the beginning of the 90-day period ending
on the date proposed for that closing.
(c) Adoption of policies. Each insured depository institution shall adopt policies for closings
of branches of the institution.
1-401.42
(d) Branch closures in interstate banking or branching
operations.
(1) In the case of an interstate bank which
proposes to close any branch in a low- or moderate-income area, the
notice required under subsection (b)(2) shall contain the mailing
address of the appropriate Federal banking agency and a statement
that comments on the proposed closing of such branch may be mailed
to such agency.
(2)
If, in the case of a branch referred to in paragraph (1)—
(A) a person
from the area in which such branch is located—
(i) submits a
written request relating to the closing of such branch to the appropriate
Federal banking agency; and
(ii) includes a statement of specific reasons for the request, including
a discussion of the adverse effect of such closing on the availability
of banking services in the area affected by the closing of the branch;
and
(B) the agency concludes that the request is not frivolous,
the agency shall consult with community leaders in the
affected area and convene a meeting of representatives of the agency
and other interested depository institution regulatory agencies with community
leaders in the affected area and such other individuals, organizations,
and depository institutions (as defined in section 19(b)(1)(A) of
the Federal Reserve Act) as the agency may determine, in the discretion
of the agency, to be appropriate, to explore the feasibility of obtaining
adequate alternative facilities and services for the affected area,
including the establishment of a new branch by another depository
institution, the chartering of a new depository institution, or the
establishment of a community development credit union, following the
closing of the branch.
1-401.43
(3) No action by the appropriate Federal
banking agency under paragraph (2) shall affect the authority of an
interstate bank to close a branch (including the timing of such closing)
if the requirements of subsections (a) and (b) have been met by such
bank with respect to the branch being closed.
(4) For purposes of this subsection, the
following definitions shall apply:
(A) The term “interstate
bank” means a bank which maintains branches in more than 1 State.
(B) The term “low-
or moderate-income area” means a census tract for which the median
family income is—
(i) less than 80 percent of the median family
income for the metropolitan statistical area (as designated by the
Director of the Office of Management and Budget) in which the census
tract is located; or
(ii)
in the case of a census tract which is not located in a metropolitan
statistical area, less than 80 percent of the median family income
for the State in which the census tract is located, as determined
without taking into account family income in metropolitan statistical
areas in such State.
1-401.44
(e) Scope of application. This section
shall not apply with respect to—
(1) an automated teller machine;
(2) the relocation of a branch
or consolidation of one or more branches into another branch, if the
relocation or consolidation—
(A) occurs within the immediate neighborhood;
and
(B) does not
substantially affect the nature of the business or customers served;
or
(3)
a branch that is closed in connection with—
(A) an emergency acquistion
under—
(i) section 11(n); or
(ii) subsection (f) or (k) of section 13;
or
(B) any assistance provided by the Corporation under section 13(c).
[12 USC 1831r-1 (previously
designated section 42, 12 USC 1831p). As added by act of Dec. 19,
1991 (105 Stat. 2308); redesignated by act of Oct. 28, 1992 (106 Stat.
4078); and amended by acts of Sept. 29, 1994 (108 Stat. 2357) and
Sept. 30, 1996 (110 Stat. 3009-411).]
