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Each depositor insured to at least $250,000 per insured bank

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4000 - Advisory Opinions

Branch Closing Notice Requirements Are Not Triggered by Closing of an Insured State Bank's Principal Office


December 18, 1992

Adrienne George, Attorney

I am writing in response to your letter to me of December 2, 1992, in which you seek confirmation of a statement I made to you by telephone regarding branch closings.

We were discussing the branch closing notice requirements contained in Section 39 of the Federal Deposit Insurance Act, 12 U.S.C. § 1831p, and in the Proposed Statement of Policy for FDIC-Supervised Banks Regarding Notices of Branch Closing, which appears in the October 19, 1992 Federal Register, 57 Fed. Reg. 47,657 (1992). You asked whether the branch closing notice requirements would be triggered under either the statute or the proposed policy statement when a state-chartered bank closed its principal office. (In the specific situation you were thinking of, two state-chartered banks were about to be merged into a federal savings bank, after which merger the principal offices of the two state-chartered banks would be closed.)

In response, I advised you that the branch closing notice requirements would not be triggered by such closings. In doing so, I relied on a statement in the proposed policy statement, to the effect that "a branch' is defined as any domestic facility of an insured depository institution, other than its main office, where deposits are received, checks are paid, or money is lent." 57 Fed. Reg. at 47,660. This is an accurate statement of the FDIC staff's position on this issue.

I hope that this information will be useful to you. If I can be of any further help, I can be reached at (202) 898-3859.

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