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U.S. Code as of:
01/19/04
Section 1831r-1. 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.
(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.
(c) Adoption of policies
Each insured depository institution shall adopt policies for
closings of branches of the institution.
(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) of this section 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 461(b)(1)(A) of this title) 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) of this section 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.
(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 -
(i) section 1821(n) of this title; or
(ii) subsection (f) or (k) of section 1823 of this title;
or
(B) any assistance provided by the Corporation under section
1823(c) of this title.
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