12 USC 1831 - Notice of branch closure

View all text of Chapter 16 [§ 1811 - § 1835a]

§ 1831r–1. Notice of branch closure

(a) Notice to appropriate Federal banking agency

(1) In general

(2) Contents of noticeA 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

(2) Contents of noticeNotice 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.

(d) Branch closures in interstate banking or branching operations

(1) Notice requirements

(2) Action required by appropriate Federal banking agencyIf, 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

(4) DefinitionsFor purposes of this subsection, the following definitions shall apply:

(A) Interstate bank defined

(B) Low- or moderate-income areaThe 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 applicationThis 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.

(Sept. 21, 1950, ch. 967, § 2[42], formerly § 2[39], as added Pub. L. 102–242, title II, § 228, Dec. 19, 1991, 105 Stat. 2308; renumbered § 2[42], Pub. L. 102–550, title XVI, § 1602(a), Oct. 28, 1992, 106 Stat. 4078; amended Pub. L. 103–328, title I, § 106, Sept. 29, 1994, 108 Stat. 2357; Pub. L. 104–208, div. A, title II, § 2213, Sept. 30, 1996, 110 Stat. 3009–411.)