§1831r–1 Notice of Branch Closure

Summary

Banks that are insured must tell the appropriate Federal banking agency at least 90 days before they plan to close a branch. The notice must be sent no later than the first day of that 90-day period and must explain the reasons for the closing with supporting statistics or other information. The bank must also tell its customers by posting a clear notice at the branch for at least 30 days before the closing and by including a notice in at least one regular account statement to those customers or by sending a separate mailing. Each bank must have written policies about how it will close branches. If a bank with branches in more than one State plans to close a branch in a low- or moderate-income area, the customer notice must give the Federal agency’s mailing address and say people may send comments to the agency. If someone from the area sends a written request explaining how the closing would hurt local banking and the agency finds the request is not frivolous, the agency may act — but that does not stop the bank from closing the branch or change the timing if the bank met the notice rules above. Definitions: “interstate bank” = a bank with branches in more than one State; “low- or moderate-income area” = a census tract with median family income under 80% of the metro or State median as described. The rules do not apply to ATMs, to moves or consolidations that stay in the immediate neighborhood and do not change the business or customers, or to branch closings tied to certain emergency acquisitions or federal assistance (see sections 1821(n), 1823(f), 1823(k), and 1823(c)).