§1831r–1 Notice of Branch Closure

Summary

A bank that is insured must tell the right federal banking agency and its customers if it plans to close a branch. The bank must give the agency written notice by the start of the 90-day period before the planned closing. That notice must explain the decision and include supporting facts or numbers. The bank must post a clear notice at the branch for at least the 30 days before closing. The bank must also notify customers by putting a notice in at least one regular mailed account statement or by sending a separate mailing by the start of the 90-day period. The bank must also have written rules for how it handles branch closings. If the bank has branches in more than one State and the branch is in a low- or moderate-income area, the customer notice must give the agency’s mailing address and say people can send comments. If someone from the area sends a written request with specific reasons and the agency finds it not frivolous, the agency must meet with community leaders and others to look for alternate banking options (for example, a new branch, a new bank, or a community development credit union). That meeting does not stop the bank from closing the branch or change the timing if the bank met the notice rules. Definitions: “interstate bank” = a bank with branches in more than one State. “Low- or moderate-income area” = a census tract with median family income less than 80 percent of the comparison area. The rules do not cover ATMs, moves or consolidations that stay in the immediate neighborhood and do not greatly change services or customers, or closures tied to emergency acquisitions under section 1821(n) or certain assistance under section 1823 (including subsections (f), (k), and (c)).