FDIC Law, Regulations, Related Acts
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1000 - Federal Deposit Insurance Act
SEC. 42. NOTICE OF BRANCH CLOSURE
(a) Notice to Appropriate Federal Banking Agency.--
(1) IN GENERAL.--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) CONTENTS OF NOTICE.--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.
[Codified to 12 U.S.C. 1831r--1(a)]
[Source: Section 2[42(a)], formerly 2[39(a)] of the Act of
September 21, 1950 (Pub. L. No. 797; 64 Stat. 882), effective September
21, 1950, as added by section 228 of title II of the Act of December
19, 1991 (Pub. L. No. 102--242; 105 Stat. 2308), effective December 19,
1991; redesignated as section 42(a) by section 1602(a) of title XVI of
the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4078),
effective December 19, 1991]
(b) Notice to Customers.--
(1) IN GENERAL.--An insured depository institution which
proposes to close a branch shall provide notice of the proposed closing
to its customers.
(2) CONTENTS OF NOTICE.--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.
[Codified to 12 U.S.C. 1831r--1(b)]
[Source: Section 2[42(b)], formerly 2[39(b)] of the Act of
September 21, 1950 (Pub. L. No. 797; 64 Stat. 882), effective September
21, 1950, as added by section 228 of title II of the Act of December
19, 1991 (Pub. L. No. 102--242; 105 Stat. 2308), effective December 19,
1991; redesignated as section 42(b) by section 1602(a) of title XVI of
the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4078),
effective December 19, 1991]
(c) Adoption of Policies.--Each insured depository
institution shall adopt policies for closings of branches of the
institution.
[Codified to 12 U.S.C. 1831r--1(c)]
[Source: Section 2[42(c)], formerly 2[39(c)] of the Act of
September 21, 1950 (Pub. L. No. 797; 64 Stat. 882), effective September
21, 1950, as added by section 228 of title II of the Act of December
19, 1991 (Pub. L. No. 102--242; 105 Stat. 2308), effective December 19,
1991; redesignated as section 42(c) by section 1602(a) of title XVI of
the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4078),
effective December 19, 1991]
(d) Branch Closures in Interstate Banking or Branching
Operations.--
(1) NOTICE REQUIREMENTS.--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) ACTION REQUIRED BY APPROPRIATE FEDERAL BANKING
AGENCY.--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.
(3) NO EFFECT ON CLOSING.--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) DEFINITIONS.--For purposes of this subsection, the
following definitions shall apply:
(A) INTERSTATE BANK DEFINED.--The term "interstate
bank" means a bank which maintains branches in more than 1 State.
(B) LOW- OR MODERATE-INCOME AREA.--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.
[Codified to 12 U.S.C. 1831r--1(d)]
[Source: Section 2[42(d)] of the Act of September 21, 1950 (Pub.
L. No. 797; 64 Stat. 882), effective September 21, 1950, as added by
section 106 of title I of the Act of September 29, 1994 (Pub. L. No.
103--328; 108 Stat. 2357), effective September 29,
1994]
(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 acquisition under--
(B) any assistance provided by the Corporation under
section 13(c).
[Codified to 12 U.S.C. 1831r--1(e)].
[Source: Section 2[42(e)] of the Act of September 21, 1950
(Pub.L. No. 797; 64 Stat. 882), effective September 21, 1950, as added
by section 2213 of title II of the Act of September 30, 1996 (Pub. L.
No. 104--208; 110 Stat. 3009--411), effective September 30, 1996.]
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