Branches and Relocations

Branches and Relocations

Comptroller’s Licensing Manual

Washington, DC
December 2003

Branches and Relocations

Table of Contents

Introduction......................................................................................................................1
Key Policies......................................................................................................................1
Decision Criteria.................................................................................................2
Standard Condition .............................................................................................2
Special Conditions ..............................................................................................2
CRA Considerations ............................................................................................2
Extension of Offices ............................................................................................2
Application Process ..........................................................................................................3
Expedited Review ...............................................................................................3
Standard Review .................................................................................................4
Publication .........................................................................................................4
Jointly Owned Branches ....................................................................................5
Specific Requirements ......................................................................................................5
State Law Branching Considerations ...................................................................5
Interstate Branching ............................................................................................5
Capital Requirements..........................................................................................7
Investment in Bank Premises Limitation ..............................................................7
NHPA/NEPA .......................................................................................................7
Depository Institution Management Interlocks Act ..............................................7
Main Office Relocation .......................................................................................8
Messenger Service or Mobile Branch ..................................................................8
Temporary Branch ..............................................................................................9
Alternative Sites ............................................................................................... 10
Night Depository (Stand-alone) ........................................................................ 11
ATM Conversion.............................................................................................. 11
College and University Branches ..................................................................... 11
Facility Banking ............................................................................................... 11
Military Banking Facilities ................................................................................ 12
Branch Closing Notices.................................................................................... 12
Procedures: Standard Review ....................................................................................... 13
Procedures: Expedited Review...................................................................................... 18
Procedures: Notice ...................................................................................................... 21
Glossary ....................................................................................................................... 22
References..................................................................................................................... 25

ii

Branches and Relocations
Introduction
This booklet contains policies and procedures to guide a national bank in
submitting a request to the Comptroller of the Currency (OCC) to establish or
relocate a branch or relocate its main office.
The Key Policies section provides a brief overview of licensing guidelines used
along with the regulations governing branching, 12 CFR 5.30, and main office
relocations, 12 CFR 5.40. Detailed discussions of the specific standards, policies,
and procedures relevant to the various forms of branching and main office activities
are contained in other sections of this booklet. There are step-by-step procedures
for the applicant and the OCC to follow and a glossary of terms used in the booklet.
The reference section includes cites to relevant OCC decisions and interpretive
letters, as well as other source documents. Throughout the booklet there are
hyperlinks to other related booklets and to filing samples, such as the Branch and
Relocation Application.
The OCC has an electronic process, titled e-Corp, that allows a bank to complete
and submit an application or notice on-line. E-Corp represents the OCC’s
continuing effort to add value to the national charter, eliminate unnecessary
regulatory burden, simplify administrative processes, enhance communications,
reduce paperwork, and take full advantage of e-government mandates. National
banks may file new branch and relocation applications on-line. In addition, a bank
may file an on-line notice to close a branch or to relocate a main office to an
existing branch in the same city, town, or village.
All national banks registered on National BankNet--the OCC’s free, extranet Web
site–can access e-Corp. Every registered bank has a BankNet agent who can provide
the necessary information. If you are not sure your bank is registered for BankNet or
you need to identify your agent, contact the OCC by e-mail at NationalBankNet@
occ.treas.gov.
Licensing staff may communicate with applicants orally or in writing (e-mail or
letter) about the application’s status, including acknowledgement and decision.
Generally, OCC will communicate in writing decisions on applications presenting
novel, complex, or significant policy or legal issues.

Key Policies
The OCC acts upon applications to establish branches, both permanent and
temporary, or to relocate branches or main offices in compliance with the
provisions of applicable federal and state law. In seeking the OCC’s approval,
applicants must comply with applicable federal and state laws.

1

Decision Criteria
In determining whether to approve a branch or relocation application, the OCC is
guided by the following principles:
•

Maintaining a sound banking system.

•

Encouraging a national bank to help meet the credit needs of its entire
community.

•

Relying generally on the marketplace as the best regulator of economic activity.

•

Encouraging healthy competition to promote efficiency and better service to
customers.

Standard Condition
A national bank that wishes to establish or relocate a branch office, or to relocate a
main office other than to an existing branch in the same city, town, or village,
including a short-distance relocation, must submit an application to the OCC and
obtain its prior approval. Unless the OCC grants an extension, the OCC’s approval
will terminate automatically if the bank does not open the branch or relocate the
branch or main office within 18 months from the approval date.

Special Conditions
The OCC may impose appropriate special conditions on approvals to protect the
safety and soundness of the bank; prevent possible conflicts of interest; assure
compliance with applicable law; or for other supervisory, compliance, or policy
considerations.

CRA Considerations
The OCC considers the CRA performance record of a national bank in making a
decision on its proposed branch or relocation application. The OCC will review
comment letters from the public and the applicant’s responses to those letters, and
information available from CRA examinations.

Extension of Offices
Whenever a national bank establishes a publicly accessible banking office that will
engage in branching functions apart from a main office or an existing branch, the
OCC considers the facility a branch, unless it determines that the facility is an
extension of the bank’s main office or one of its existing branches or satisfies
another exception from the definition of a branch (see the Glossary). The OCC
relies on a number of factors in distinguishing between a branch and an extension
of the bank’s main or branch office. The factors include:
•

The distance between the existing office and the proposed facility.

2

•

Whether a direct line of sight exists between the two facilities and how the
intervening space is used.

•

Whether the two facilities are connected in any way, such as by a pneumatic
tube.

•

The purpose of the proposed facility.

•

Whether the facility is situated physically in such a way as to give the bank a
material advantage over competitors in attracting customers.

•

The dependency of the proposed facility on the existing office.

•

The availability for expansion of adequate sites closer to the existing office.

•

The existing facility’s demonstrated need for such a facility.

•

Whether a state bank could operate the proposed facility as an extension of its
main or branch office.

The OCC balances these factors and applies them to each case to determine
whether a particular facility constitutes a branch. The OCC does not consider
extensions of a national bank’s main office or authorized branch to be separate
branches under 12 USC 36.

Application Process
A bank that wishes to establish a branch or relocate a main or branch office must
apply to the OCC for approval. Application processing time frames differ
depending on whether the bank meets certain criteria. The OCC provides an
expedited review process for an eligible bank (see Glossary for definition). If the
bank is not eligible for expedited review, the bank’s application will be subject to
the standard review process.

Expedited Review
The OCC generally provides expedited review of branch and relocation
applications, if the applicant is an eligible bank. An application for a branch or
relocation, processed under expedited review, will be considered approved as of
the 15th day after the close of the public comment period, or the 45th day after the
filing is received by the OCC, whichever is later, unless the OCC takes one of the
following actions:
•

Decides the application sooner.

•

Formally extends the review period.

•

Removes the application from the expedited review process.
3

The OCC will remove an application from expedited review if the filing, or an
adverse comment about the filing, presents significant supervisory, CRA, or
compliance concerns, or raises significant legal or policy issues that require
additional OCC review. Applicants should refer to 12 CFR 5.13(a)(2) and the
“Public Notice and Comments” booklet for a more detailed discussion about the
reasons the OCC will remove an application from expedited review.
The OCC notifies an applicant promptly whenever it decides to remove an
application from expedited review and provides a written explanation of the reasons
for that decision. When an application is removed from expedited review as a
result of information obtained in a public comment, the OCC will also inform the
commenter.

Standard Review
National banks submitting applications subject to standard review will receive a
written decision from the OCC that the applications are approved, approved with
special conditions, or denied after the close of the 30-day public comment period
(or 15-day comment period for short-distance relocations). A standard review
means that the bank must receive a written decision document from the OCC. The
application is not approved automatically.

Publication
The national bank applicant publishes a public notice containing specific
information on each branch or relocation application on the date the application is
filed with the OCC, or as soon as possible before or after the date of filing.
Each national bank that proposes to establish a branch or relocate a branch or its
main office must publish notice of the application in a newspaper of general
circulation in the community to be served. The OCC may, under certain
circumstances, waive this public comment period. The comment period is 30 days,
except for short-distance relocations that require only a 15-day comment period.
No publication generally is required for the relocation of a main office to an existing
branch site in the same city, town, or village. All publication notices should state
the filing and its subject matter, and indicate that the OCC will review public
comments. The publication should include:
•

The application type.

•

The date of the filing.

•

The name and location of the bank.

•

The location of the proposed branch (if a relocation, include the current and
proposed locations).

•

The address of the appropriate district office to which written comments may be
forwarded.

4

•

The duration of the comment period.

•

Any other information that the OCC requires.

If an application is part of a multi-step transaction, all steps should be included in
the publication. Refer to the Public Notice discussion in the “Public Notice and
Comments” booklet for general information about multiple-step transactions and for
the other general requirements.

Jointly Owned Branches
When one or more national banks or other depository institutions propose to
establish a branch jointly, one of the national banks may act as agent and submit
one branch application on behalf of the national banks in the proposed group. The
application must include the name and main office address of each entity in the
group. Although only one application is filed, each national bank applicant, if
approved, receives a branch certification. Other depository institutions involved in
the proposal must receive approval from appropriate state or federal regulators.

Specific Requirements
State Law Branching Considerations
The OCC requires each national bank to answer questions about state branching
law in each branch application. In some cases applicants should submit additional
legal analysis and documentation of state law factors - for example if, the applicant
expects a legal challenge, the legal authority for the branch is not readily apparent,
or the application presents unusual legal issues. If state law requires a market area
analysis, the bank may use the assessment area it defines for its CRA evaluations,
unless state law requires a different delineation.
Applicants should also review state laws addressing corporate names. The OCC
considers the matter of branch names to be a business decision made after careful
consideration of state law and other factors contained in the Interagency Statement
Branch Names issued May 1, 1998. (See Appendix C, “General Policies and
Procedures” booklet for specific discussion.)
After state laws are enacted or amended to permit a branch at a location previously
prohibited by state law, the OCC usually will accept, but will not act upon,
applications prior to the effective date of state law.

Interstate Branching
The Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 (RiegleNeal) permits a bank to establish a branch in a state other than a state in which it
has its main office or any authorized branches. This holds true provided that the
proposed branch state has in effect a law that applies equally to all banks and
expressly permits all out-of-state banks to establish de novo branches in that state.
The statute defines a de novo branch as a branch of a national bank that is
5

established originally by the national bank and does not become a branch of the
bank by acquisition of an insured depository institution or a branch of an insured
depository institution, or a conversion. Assuming the existence of a state law that
meets these criteria, Riegle-Neal provides that a bank applying to establish an
interstate de novo branch must:
•

•

Comply with the filing requirements of any host state (and submit a copy of the
application to its state bank supervisor) to the extent that the requirements:
—

Do not discriminate against out-of-state banks or bank holding companies
or their subsidiaries.

—

Are similar in effect to those imposed on out-of-state nonbanking
corporations (“doing business” filing requirements).

Comply with the OCC’s usual CRA considerations, and if the applicant has no
bank affiliate in the host state, the OCC also considers:
—

The most recent written CRA evaluation of the bank’s affiliates.

—

The applicant’s record of compliance with applicable state community
reinvestment laws.

•

Be adequately capitalized as of the date the application is filed and the date the
branch is opened.

•

Be adequately managed as of the opening date.

Deposit Production Rule
Riegle-Neal prohibits banks from using established or acquired covered interstate
branches (see Glossary) as deposit production offices. It also provides guidelines for
determining whether banks reasonably meet the credit needs of the communities
served. To assist regulators in the credit needs assessment, the rule provides for a
loan-to-deposit screen, which compares a bank’s statewide loan-to-deposit ratio
(BSLD) with that state’s statewide loan ratio (statewide ratio). The BSLD is comprised
of the loan-to-deposit ratio of all of a bank’s covered interstate branches within the
state. The statewide ratio is the loan-to-deposit ratio of all the banks chartered or
headquartered in that state, except for certain limited purpose banks. If the BSLD is
at least 50 percent of the statewide ratio, a credit needs determination is not
necessary. If the BSLD is less than 50 percent of the statewide ratio, or if the OCC
determines that no reasonably available data exists to determine the bank’s
statewide ratio, the OCC must perform a credit needs determination.
The OCC will assess a bank’s compliance with the deposit production rule at
regularly scheduled examinations, but no earlier than one year after the
establishment by the bank of a covered interstate branch in a new state. Failure to
maintain an adequate BSLD could result in supervisory sanctions, including denial
of branch applications in that state.

6

Capital Requirements
Every national bank seeking to establish branches outside of the city, town, or
village in which it is situated shall, under 12 USC 36(c), have capital and surplus
equal to that required of state-chartered institutions applying to establish branches.
The applicant should refer to 12 CFR 3, Minimum Capital Ratios, for the required
minimal acceptable capital ratio for national banks.

Undercapitalized Banks
The applicant should refer to Prompt Corrective Action (12 CFR 6) for information
that specifies supervisory actions restricting the activities of banks categorized as
undercapitalized, significantly undercapitalized, or critically undercapitalized.
The OCC may approve an application for a new branch, relocation, or main office
relocation from an undercapitalized bank, if the OCC determines that:
•

The bank’s capital restoration plan has been accepted by the OCC.

•

The bank is implementing the plan.

•

The proposed branch or relocation is consistent with and will further the
achievement of the plan.

Investment in Bank Premises Limitation
A national bank should review its compliance with rules for aggregate investment in
bank premises when planning to establish a branch or relocate a branch or main
office. If the bank’s investment would cause it to exceed its capital stock or a level
previously approved by the OCC, it must submit either a notice or an application,
depending on the circumstances. For details, applicants should refer to the
“Investment in Bank Premises” booklet.

NHPA/NEPA
The applicant must consider the National Historic Preservation Act and the National
Environmental Policy Act for its proposed transaction and certify whether the
proposal will affect an historic district, site, building, structure, object, or the quality
of the human environment. (For a complete discussion, see the “General Policies
and Procedures” booklet.)

Depository Institution Management Interlocks Act (DIMIA)
The DIMIA prohibits certain management interlocks. The OCC may not authorize
establishment of a branch if it would cause a bank to operate in a market area that
would result in creating a prohibited interlock. For a detailed discussion, refer to
the “Management Interlocks” booklet.

7

Main Office Relocation
The main office of a national bank, under 12 USC 30, may not relocate more than
30 miles beyond the limits of the city, town, or village in which the main office is
located. Main office relocations to existing branch sites within the same city, town,
or village do not require prior approval from the OCC. This type of relocation only
requires notice to the OCC. The notice must be submitted to the OCC prior to the
relocation and must include the new address of the main office and the effective
date of the relocation.
A national bank that desires to relocate its main office to a different location within
its city, town, or village must file an application with the OCC. If the proposed site
is beyond the limits of the city, town, or village where the main office is located the
bank must file an application with the OCC and:
•

Shareholders owning two-thirds of the voting stock must approve the
relocation.

•

The Articles of Association must be amended.

•

The applicant must submit a Secretary’s Certificate certifying that
shareholders’ approval has been obtained and provide the amended Articles
of Association.

An applicant that desires to convert an existing main office to a branch must file a
branch application. In addition, interstate branching laws may apply when a main
office relocation crosses state lines and the bank seeks to retain branches in its
former main office state.

Messenger Service or Mobile Branch
The application process for messenger services and mobile branches is the same as
for any other branch. The operation of the messenger service or mobile branch is
generally limited to those geographic locations in which the bank may permissibly
operate a permanent branch, unless state branching law permits operation of these
facilities in a broader area. For a bank to establish a messenger service or mobile
branch or to expand the service area previously approved for an existing messenger
service or mobile branch:
•

The bank must file a branch application delineating the proposed or expanded
geographic area to be served by the facility.

•

The bank must publish notice, in a newspaper of general circulation in the
community to be served, of the proposed or expanded geographic area to be
served by the facility. If the facility will serve more than one community, it may
be necessary to publish this notice in more than one newspaper to assure that
notice has been given in each community. The OCC will not approve the
operation of a messenger service or mobile branch in an area or areas beyond
that in which the notice was published.

8

•

The OCC must approve the proposed or expanded geographic area.

In general, a bank need only identify in its application and public notice the
geographic area to be served by the messenger service or mobile branch; however
depending on state law, a more specific statement of the locations to be served may
be appropriate. In addition, in the case of messenger services, a bank may seek
approval in one application for multiple messenger services to serve the same
general geographic area.
After the proposed service begins operations, the bank must maintain a log of
operations, indicating the date, specific location, and a description of each stop (for
example, office, store, residence).

Temporary Branch
General
A temporary branch is a branch located at a fixed site and from the time of its
opening is scheduled to close within one year and this information is contained in
the application and the published notice. Temporary branches are established
under a variety of circumstances. The following discussion covers procedural
requirements for most standard and emergency situations. Banks with questions
regarding a particular situation should contact the appropriate district licensing
manager.
Advance closing notices are not required when it is time for the temporary branch
to close. For details regarding branch closings, applicants should refer to the
“Branch Closings” booklet. Alternatively, after a temporary branch is operating, the
bank may decide to make it permanent. In such cases, the bank should follow
standard branch application procedures.

Nonemergency Branching
In most cases, the bank must file an application with the OCC and provide public
notice. The OCC may waive or reduce the public notice and comment period for
an application to establish a temporary branch if:
•

The applicant bank has a CRA rating of “satisfactory” or “outstanding.”

•

The temporary branch, if established by a state bank to operate in the manner
proposed, would be permissible under state law without state approval.

Emergency Branching
In the event of a major disaster or other emergency, the OCC may grant approval for
a temporary branch. Such approvals reflect the particular circumstances and
generally permit operation for six months, unless the OCC grants an extension.
Major Disasters: The OCC has adopted abbreviated procedures for processing
branch applications when the President of the United States declares a “major
disaster area.” After the major disaster area is designated, the OCC generally will
9

waive normal regulatory and procedural requirements. If the approved main office
or branch is inaccessible or inoperable due to the emergency, the bank may
establish a temporary branch consistent with applicable federal and state law
without first submitting a branch application. After establishing the branch, the
bank should contact the OCC with the name and location of the temporary branch.
The OCC will also decide on either written or oral national bank requests to provide
temporary banking services at any new location in the major disaster area within the
geographic area in which a national bank may establish a branch.
Other Emergencies: The OCC also may waive normal regulatory and procedural
requirements when banking services are interrupted because of localized disasters,
such as a fire. On an individual basis, the OCC grants requests for a waiver of
normal regulatory procedures after considering whether the affected national bank
has other branches in close proximity to the site and the proximity of the proposed
site to the affected office.

Alternative Sites
When an approved permanent main office or branch location undergoes renovation
or construction, a bank may be unable to use it for a limited period of time. In
some cases, the bank may be able to operate from a temporary structure at the
approved site until renovations are completed. In such cases, no application or
prior notification to the OCC is required.
If the bank cannot access the approved site, the OCC will permit operation of the
approved branch or main office at an alternative location upon prior notice to the
OCC if the site meets the following requirements:
•

The alternate site is within 2,000 feet of the approved site.

•

The alternate site will operate for no more than one year.

•

Following closure of the alternate site, the approved permanent site must
open or reopen.

•

If the alternate site is a branch site, it must comply with the requirements of
12 USC 36, including any state law branching limits that are applicable to
national banks.

•

If the main office operates from an alternate site, the site must be located
within the same city, town, or village as authorized for the permanent main
office site.

For alternative sites not meeting these criteria, the bank must file a branch or
temporary branch application, or application or notice to relocate a main office.

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Night Depository (Stand-alone)
Stand-alone night depositories or those established at an ATM site are branches
requiring OCC authorization.

ATM Conversion
To convert an existing ATM to a branch, a national bank must submit a branch
application to the OCC. Conversely, a national bank may convert an existing
branch to an ATM after notifying the OCC in writing prior to the conversion and
following branch closing requirements.

College and University Branches
The OCC has adopted simplified branching procedures for limited account services
offered temporarily by national banks at colleges and universities if certain
requirements are met. The OCC generally will waive filing fees and prior public
notice requirements for college and university branches, when a national bank:
•

Can demonstrate that a state bank can establish and operate the proposed
facility at a college or university without submitting an application to the state.
The facility also must meet all requirements of state law applicable to state
banks. The OCC will accept a copy of the state law or written opinion of the
state-banking regulator as acceptable evidence.

•

Will provide only limited account services for a temporary period during
registration and for an additional period up to seven days per year (not in
contravention of state bank authority).

•

Has a “satisfactory” or better rating for its most recent CRA evaluation.

Facility Banking
Under 12 USC 1828(r), a bank subsidiary of a bank holding company may act as
agent for an affiliated depository institution to receive deposits, renew time deposits,
close loans, service loans, and receive payments on loans and other obligations.
The law provides that:
•

The location where the affiliate is acting as agent is not considered a branch.

•

The bank acting as agent cannot conduct any activity as agent that it could not
conduct as principal.

•

The affiliated depository institution using an agent bank cannot have the agent
conduct any activity that it is prohibited from conducting as principal.

•

Under certain circumstances, an insured savings association may act as agent
for an affiliated bank and not be considered a branch of that affiliate.

11

In addition, the law specifically provides that it does not affect any authority under
any other provisions of law that permit agency relationships involving banks without
raising branching concerns. Thus, other agency relationships also may not
constitute the establishment of branches. For instance, a variety of OCC legal
interpretations on facility banking issued prior to the passage of 12 USC 1828(r)
remain valid. For further information about whether certain agency relationships
constitute branching, contact the appropriate district counsel’s office.

Military Banking Facilities
A national bank also may establish a banking facility on a military installation by
requesting it to be designated as a government financial agent by the Secretary of
the Treasury as authorized under 12 USC 90. Such military banking facilities do not
require a branch application, since they are not covered by 12 USC 36. Banks
desiring to establish a military banking facility must contact the U. S. Treasury
Department, Office of the Fiscal Assistant Secretary, Washington, DC 20226.

Branch Closing Notice
A bank must file a branch closing notice whenever it proposes to relocate a branch.
However, there are exceptions:
•

A bank is not required to file an advance closing notice for short-distance
branch relocations or branch consolidations as described in the “Joint Policy
Statement on Branch Closing Notices and Policies” (see the Appendix in the
“Branch Closings” booklet).

•

A bank does not need to file an advanced closing notice if a mobile branch or
messenger service will continue to operate within its approved geographic
area, but changes stops within that area.

For a detailed discussion and list of other exceptions, refer to the “Branch Closings”
booklet).

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Procedures: Standard Review
Prefiling Meeting
Licensing Staff
1.

Refers a bank that requests instructions to the “General Policies and
Procedures” booklet and to this booklet of the Comptroller’s Licensing Manual.

Bank or Licensing Staff
2.

Requests an optional prefiling meeting to review procedures for branches and
relocations and factors that may influence the OCC’s review of the application.

Licensing Staff
3.

If any prefiling discussion or meeting reveals significant policy, legal, CRA,
consumer compliance, or supervisory issues, contacts Headquarters Licensing
(HQ LIC) for guidance on whether:
•

The application should be filed with HQ LIC if broad issues are involved.

•

Specific issues should be carved out for HQ LIC action while the
application continues to be processed in the appropriate district office.

4. Prepares memoranda on all prefiling meetings and records pertinent
information from telephone calls. Retains memoranda and other information
in a pending file.

Filing the Application and Publication
Bank
5. Submits a completed application and filing fee (if applicable) to the licensing
manager in the appropriate district office or to HQ LIC.

6. Publishes a notice on the date of filing or as soon as practicable before or after
the date of filing (see the “Public Notice and Comments” booklet). [In the
case of an emergency branch established in an area designated as a Major
Disaster Area, the bank should contact the licensing manager in the
appropriate district.]

13

Review
Licensing Staff
7. Initiates and enters appropriate information into the Corporate Activities

Information System (CAIS) and establishes the official file to maintain all
original documents.

8. (If applicable) Forwards the filing fee and the deposit memorandum (Form
6043-01) to the Comptroller of the Currency, Attention: Accounts
Receivable, 250 E Street SW, MS-4-8, Washington, DC 20219. Retains a
copy of the memorandum.

9. Reviews the filing and any other relevant information about the bank, and:

10.

11.

•

Determines if the filing contains all information necessary to reach a
decision.

•

Requests additional information from the bank by a specific due date, if
the filing does not contain all information necessary to reach a decision.

If at any time the filing presents significant policy, legal, CRA, consumer
compliance, or supervisory issues, contacts HQ LIC to decide:
•

If specific issues should be carved out for HQ LIC action while the
application continues to be processed in the appropriate district office.

•

If, at any point during the processing, whether the case should be referred
to HQ LIC for further processing.

Within five business days of receipt:
•

•

Notifies the appropriate assistant deputy comptroller (ADC)/ examiner-incharge (EIC) and/or the portfolio manager in the supervisory office of
receipt of the application, and:
—

Solicits comments from the ADC/EIC and/or portfolio manager with
preliminary responses required by the 15th day after the receipt date.

—

If a bank premises application or notice is included in this filing,
refers the bank premises request to the supervisory staff for decision.

—

For undercapitalized banks, requests information from the ADC/EIC
and/or portfolio manager about the relationship of the branch
application to the bank’s capital plan.

For Large Banks (LB), sends an e-mail informing the LB/EIC of the receipt of
the application and soliciting comments by the 15th day after the receipt
date. Sends a copy of the e-mail to the LB deputy comptroller (DC).

14

Unless the LB/DC sends an e-mail to Licensing, the EIC’s reply serves as the
supervisory comment.
•

Requests compliance staff and the community affairs officer for the district
to provide the following preliminary information by the 15th day after the
receipt date.
—

Recommendations, if any, made at or subsequent to the most recent
CRA examination, by the OCC to the bank to improve its
performance and, if known, the bank’s responses.

—

Public comments and community contacts subsequent to the most
recent CRA examination.

—

Whether information filed by the bank (for example, HMDA data)
more recently than the most recent CRA examination reflects any
material change in CRA performance.

•

If a legal issue is identified, forwards relevant materials to the Law
Department and requests a preliminary response by the 15th day after the
receipt date on whether a significant legal issue is present.

•

Contacts other divisions, as appropriate, with responses requested by the
15th day after the receipt date.

•

Contacts HQ LIC if the proposal will:
—

Have any significant effect on the quality of the human
environment.

—

Affect any district, site, building, structure or object listed in, or
eligible for listing in the National Register of Historic Places. (See
the “General Policies and Procedures” booklet for specific NHPA
discussion.)

Public Comments and Hearings
Licensing Staff
12. Refers to the “Public Notice and Comments” booklet if copies of applications
or hearings are requested, or public comments filed.

13. Comments should be forwarded to appropriate units for evaluation and advice
(for example, legal issues to legal staff). If an adverse CRA comment is
received, promptly notifies HQ LIC.

15

Decision
Licensing Staff
14. After the close of the public comment period, prepares a confidential

memorandum and decision letter recommending a decision to the delegated
official.

15. Decides the application under delegated authority or forwards the official file
to the appropriate deciding official, and:
•

If routine approval (no decision letter to the bank), goes to step 16.

•

If referred to HQ LIC, goes to step 19.

•

If the application is conditionally approved or denied, forwards a copy of
the confidential memorandum, decision document, and transmittal letter to
the Director, Licensing Policy and Systems. If denied after obtaining legal
concurrence, goes to step 26.

16. Notifies the bank and any interested parties of the decision, if appropriate.

Notifies the appropriate ADC, EIC, or portfolio manager or LB/DC and LB/EIC
of the decision by forwarding updated CAIS comments and, if warranted,
advises of any written conditions attached to the decision or other supervisory
concerns.

17. Sends the bank a decision letter and, if appropriate, a Customer Satisfaction
Survey. Notifies all interested parties.

18. Makes appropriate CAIS entries.

HQ LIC
19. Reviews the file and all relevant information; solicits comments from other

OCC divisions, as appropriate; makes a recommendation; and forwards the
official file to the appropriate official for decision.

20. After the decision, notifies the bank and the district of the decision. Notifies

the appropriate portfolio manager and ADC/EIC or the LB/DC and LB/EIC of
the decision by forwarding updated CAIS comments and, if warranted, advises
of any written conditions attached to the decision or other supervisory
concerns.

21. Sends the bank a decision letter and, if appropriate, a Customer Satisfaction
Survey. Also, notifies all interested parties.

22. If the application is conditionally approved or denied, forwards a copy of the
confidential memorandum, decision document, and transmittal letter to the
Director, Licensing Policy and Systems.

16

23. For conditionally approved and approved filings, returns the official file to the
district office for authorization and close out.

24. Makes appropriate CAIS entries.
25. If denied, goes to step 26.

Close Out
Licensing Staff
26. Reviews the file for completeness and forwards it to Central Records.
27. Makes appropriate CAIS entries.

17

Procedures: Expedited Review
Prefiling Meeting
Licensing Staff
1.

Refers a bank that requests instructions to the “General Policies and
Procedures” booklet and to this booklet of the Comptroller’s Licensing
Manual.

Bank or Licensing Staff
2.

Requests an optional prefiling meeting to review policies and procedures for
branches and relocations and to discuss factors that may influence the OCC’s
review of the application.

Licensing Staff
3.

4.

If any prefiling discussion or meeting reveals significant policy, legal, CRA,
consumer compliance, or supervisory issues, contacts Headquarters Licensing
(HQ LIC) for guidance on whether:
•

The application should be filed with HQ LIC if broad issues are involved.

•

Specfic issues should be carved out for HQ LIC action while the
application continues to be processed in the appropriate district office.

Prepares memoranda on all prefiling meetings and records pertinent
information from telephone calls. Retains memoranda and other information
in a pending file. All communications with applicants may be made by e-mail,
including acknowledgment and approval.

Filing the Application and Publication
Bank
5.

Submits a completed application and filing fee (if applicable) to the licensing
manager in the appropriate district office or to HQ LIC.

6.

Publishes a notice on the date of filing or as soon as practicable before or after
the date of filing (see the “Public Notice and Comments” booklet).

18

Review
Licensing Staff
7.

Initiates and enters appropriate information into the Corporate Activities
Information System (CAIS) and establishes the official file to maintain all
original documents.

8.

(If applicable) Forwards the filing fee and the deposit memorandum (Form
6043-01) to the Comptroller of the Currency, Attention: Accounts Receivable,
250 E Street SW, MS-4-8, Washington, DC 20219. Retains a copy of the
memorandum.

9.

Determines if the bank meets:
•

The eligible bank criteria for expedited review.

•

If not an eligible bank, goes to the Procedures for Applications.

10.

Within five business days of receipt, notifies the appropriate portfolio manager
and assistant deputy comptroller (ADC)/EIC of Mid-size /Community Banks of
the filing and solicits comments from other OCC divisions, as appropriate, with
a preliminary response required within 15 days of the application’s receipt.
For Large Bank applicants, asks the licensing manager about the supervisory
notice/comment distribution to the LBDC/EIC.

11.

If, at any time, policy, legal, or supervisory issues are identified, repeats step 3.

Decision
Licensing Staff
12.

Completes the expedited branch decision document or confidential
memorandum. With the exception of the investment in bank premises
question, all answers on the expedited branch decision document should be
marked "Yes." A “Yes” answer to this question should be referred to the
supervisory office for disposition of the request for investment in bank
premises. This document may be expanded to accommodate an adequate
discussion of significant issues. The Confidential Memorandum format should
be used to discuss complex issues.

13. Decides the application under delegated authority or forwards the official file
to the appropriate deciding official.
14. Within five business days of receipt, if the application will receive expedited
treatment, sends the applicant by e-mail or letter acknowledgment of receipt
and stating that the application may be considered approved 15 days after the
end of the public comment period or 45 days after the application is received
by the OCC, whichever comes later, unless the OCC notifies the bank orally or
in writing to the contrary.

19

If not an eligible bank or if otherwise subject to standard processing, sends a
letter within five business days of receipt, notifying the bank that its filing will
be processed under the standard review process and that the branch cannot
operate until the OCC provides written approval.
15. Updates the CAIS entry, files the review and decision documents.

Close Out
Licensing Staff/HQ LIC
16. Reviews the file for completeness and forwards it to Central Records.
17. Makes appropriate CAIS entries.

20

Procedures: Notice
Notice of Main Office Relocation to Existing Branch Site within the
Same City, Town, or Village
Licensing Staff
1.

Refers a bank that requests instructions to the “General Policy and Procedures”
booklet and to this booklet of the Comptroller’s Licensing Manual.

Bank
2.

Submits to the appropriate licensing manager a letter of notification prior to the
relocation.

Processing the Notification
Licensing Staff
3.

Establishes an official file that contains all original documents.

4.

Sends a letter to the bank acknowledging receipt of the letter of notification.

5.

Initiates and makes appropriate CAIS entries.

Close Out
6.

Sends the official file to Central Records.

21

Glossary
A Bank Holding Company (BHC) is the entity that controls the bank. In the case of
a multi-tiered BHC structure, it is the top tier.
A branch, as provided in 12 USC 36(j), includes any branch bank, office, agency,
additional office, or any branch place of business established by a national bank in
the United States or its territories at which deposits are received, checks paid, or
money lent. Branch facilities may include a messenger service, mobile branch,
temporary facility, night depository (drop box), drive-in facility, or a seasonal
agency.
A banking office or facility is not a branch if it falls within one of the following
categories:
•

The bank does not permit the public to have physical access to the facility to
make deposits, receive withdrawals, or borrow money (for example, an office
established by the bank to receive deposits only through the mail would not be
a branch).

•

It is located at the site of, or is an extension of, an approved main office or
branch office of a national bank.

•

It is a facility established under the authority of 12 USC 90 or other authority
not requiring approval under 12 USC 36.

•

An ATM or a remote service unit.

•

A loan production office.

•

A deposit production office.

•

A main office.

A central city, as defined in 12 CFR 5.3(e), means the city or cities identified in the
complete title of the Metropolitan Statistical Area (MSA) in which the relocating
office is located.2

2

The Office of Management and Budget’s (OMB) list of MSAs and Central Cities can be found on the
Internet at http://www.census.gov. At the “Subjects A-Z” menu, click on “M,” under “Municipal,”
click on “Metropolitan Area Population Estimates,” then on “definitions,” and then click on “Central
Cities.” Copies of the OMB list may also be obtained by requesting the most recent “List of
Metropolitan Area Definitions” (accession no. PB96-180575) from National Technical Information
Services (NTIS), Document Sales, 5205 Port Royal Road, Springfield, VA 22161, (703) 487-4650.

22

A covered interstate branch for the purposes of the Deposit Production rule (12
CFR 25.62) includes:
•

Any branch of a national bank that is established or acquired outside of the
bank’s home state; or

•

Any branch of a bank controlled by an out-of-state BHC.

An eligible bank is a national bank that:
•

Has a composite CAMELS rating of 1 or 2.

•

Has an outstanding or satisfactory Community Reinvestment Act (CRA) rating.
(This factor does not apply to an uninsured bank or a special purpose bank
covered by 12 CFR 25.11(c)(3).)

•

Is well capitalized as defined in 12 CFR 6.4(b)(1).

•

Is not subject to a cease and desist order, consent order, formal written
agreement, or prompt corrective action directive or, if subject to any such order,
agreement, or directive, is informed in writing by the OCC that it still may be
treated as an “eligible bank.”

The home state of a national bank is the state in which its main office is located.
The home state of a BHC is the state in which the total deposits of all of its banking
subsidiaries are the largest as of the later of July 1, 1966, or the date on which the
company becomes a BHC under the Bank Holding Company Act (12 CFR 25.62).
An interstate bank for the purposes of the deposit production rule is a national bank
that:
•

Is owned by a holding company the home state of which is in a state other than
the bank’s home state, or

•

Operates a branch or branches in a state other than its home state.

A jointly owned branch is a branch office established by more than one insured
depository institution.
A low- or moderate-income area, as provided in 12 USC 1831r-1, means a census
tract for which the median family income is: (1) less than 80 percent of the median
family income for the MSA in which the census tract is located; or, (2) in the case of
a census tract that is not located in an MSA, 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 MSAs in such state.
A main office is the office so designated in the national bank’s Articles of
Association. (A national bank may change the location of its main office by
following the procedures for relocating a main office or in connection with a RiegleNeal transaction.)

23

A messenger service is any service used by a national bank and its customers, to
pick up from, and deliver to, specific customers at locations, such as homes or
offices, items involving branching transactions — that is, items constituting deposits,
withdrawals, or payments of loan proceeds — between the bank and its customers.
(12 CFR 7.1012(a)).
A military banking facility is a banking office established on a U. S. military
installation under the authority of 12 USC 90.
A mobile branch is a facility, other than a messenger service, that does not have a
single, permanent site, and includes a vehicle that travels to public locations for the
conduct of branching transactions. A mobile branch may serve regularly scheduled
locations or be open at various times and locations, such as county fairs, sporting
events, or school registration periods. (A branch license is needed for each mobile
unit.)
A seasonal agency is an office established in a resort community, within the limits
of the county in which the bank’s main office is located, that may receive and pay
out deposits, issue and cash checks and drafts, and perform incidental business.
Seasonal agencies may be approved by the OCC only if state law permits branching
within the county or greater areas, and if no bank is located and conducts business
in the community in which the proposed agency will be located. Capital
requirements of 12 USC 36 do not apply to seasonal agencies. Authorization of a
seasonal agency will be revoked when a state or national bank opens in the
community.
A short-distance relocation, in accordance with 12 CFR 5.3(I), means moving a
branch or main office within: (1) a one-thousand foot radius of the site if the branch
or main office is located within a central city of an MSA; (2) a one-mile radius of the
site if not located within a central city, but if located within an MSA; or, (3) a twomile radius of the site if not located within an MSA.
A temporary branch means a branch located at a fixed site and that is scheduled to,
and will, permanently close no longer than one year after the branch is first opened
as specified in the branch application and the public notice.

24

References
Branches—Definition, Establishment, Operation of, and ATM Exclusion
Law
12 USC 36
Regulation
12 CFR 5.30
Branch Closings
Law

12 USC 1831r-1

Capital Requirements
Law

12 USC 36

Change in Location—Policy and Procedures
Laws
12 USC 30, 36
Regulations
12 CFR 5.30, 5.40
Community Reinvestment Act of 1977
Laws
12 USC 2901 - 2908
Regulation
12 CFR 25
Decisions
Regulation

12 CFR 5.13

Deposit Production Rule
Law
Regulation

12 USC 1835a
12 CFR 25

Depository Institution Management Interlocks Act
Laws
12 USC 3201-3208
Regulation
12 CFR 26
Expedited Processing
Regulations

12 CFR 5.13, 5.30(f)(4)

Filing Fees
Regulation

12 CFR 5.5

Investment in Bank Premises
Law
Regulations

12 USC 371d
12 CFR 5.37, 12 CFR 7.1000

Loans and Deposits Originating at Nonbranch Locations
Regulations
12 CFR 7.4004, 7.4005
Loans Originating at Banking Offices or at Other than Banking Offices
Regulations
12 CFR 7.1003-1005
Messenger Services
Regulation

12 CFR 7.1012

25

National Environmental Policy Act
Laws
42 USC 4321-4347
Regulation
40 CFR 1500
National Historic Preservation Act
Laws
16 USC 470-470x-6
Regulation
36 CFR 800
Notice of Filing
Regulation

12 CFR 5.8(a)

Public Comments and Hearing
Regulations

12 CFR 5.10, 5.11

Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994
Laws
12 USC 36(d), (e), (f), (g); 215a-1; 1828(d)
12 USC 1831u; 1835a, 2906(b)(1)(b), (d), (e)
Remote Service Units/ATM
Law
Regulations

12 USC 36
12 CFR 7.4003, 7.4005

Seasonal Agency
Law

12 USC 36(c)

26