§ 1831r-1. — Notice of branch closure.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1831r-1]
TITLE 12--BANKS AND BANKING
CHAPTER 16--FEDERAL DEPOSIT INSURANCE CORPORATION
Sec. 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.
(Sept. 21, 1950, ch. 967, Sec. 2[42], formerly Sec. 2[39], as added Pub.
L. 102-242, title II, Sec. 228, Dec. 19, 1991, 105 Stat. 2308;
renumbered Sec. 2[42], Pub. L. 102-550, title XVI, Sec. 1602(a), Oct.
28, 1992, 106 Stat. 4078; amended Pub. L. 103-328, title I, Sec. 106,
Sept. 29, 1994, 108 Stat. 2357; Pub. L. 104-208, div. A, title II,
Sec. 2213, Sept. 30, 1996, 110 Stat. 3009-411.)
Codification
Section was classified to section 1831p of this title prior to
renumbering by Pub. L. 102-550.
Amendments
1996--Subsec. (e). Pub. L. 104-208 added subsec. (e).
1994--Subsec. (d). Pub. L. 103-328 added subsec. (d).
