Reporting burden - Regulatory notice

NOTICE OF BRANCH CLOSURE
(FR 4031; OMB No. 7100-0264)
There is no formal reporting form for this information collection,
however, a summary of the disclosure requirements is provided below.
FDIC Federal Deposit Insurance Act
SEC. 42. NOTICE OF BRANCH CLOSURE
Codified to 12 U.S.C. 1831r--1(a)
Source: Section 2[42(a)], formerly 2[39(a)] of the Act of September 21, 1950 (Pub. L. No. 797;
64 Stat. 882), effective September 21, 1950, as added by section 228 of title II of the Act of
December 19, 1991 (Pub. L. No. 102--242; 105 Stat. 2308), effective December 19, 1991;
redesignated as section 42(a) by section 1602(a) of title XVI of the Act of October 28, 1992 (Pub.
L. No. 102--550; 106 Stat. 4078), effective December 19, 1991

NOTICE TO APPROPRIATE FEDERAL BANKING AGENCY
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.
CONTENTS OF NOTICE shall include: a detailed statement of the reasons for the decision to
close the branch; and statistical or other information in support of such reasons.

NOTICE TO CUSTOMERS
IN GENERAL - An insured depository institution which proposes to close a branch shall
provide notice of the proposed closing to its customers.
CONTENTS OF NOTICE shall consist of: 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
 inclusion of a notice in—
o at least one of any regular account statements mailed to customers of the branch
proposed to be closed, or
o in a separate mailing,
o by not later than the beginning of the 90-day period ending on the date proposed
for that closing.

ADOPTION OF POLICIES
Each insured depository institution shall adopt policies for closings of branches of the institution.

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BRANCH CLOSURES IN INTERSTATE BANKING OR BRANCHING OPERATIONS
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) 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.
 Action required by appropriate federal banking agency - If, in the case of a branch
referred to in paragraph (1):
 a person from the area in which such branch is located:
o submits a written request relating to the closing of such branch to the
appropriate Federal banking agency; and
o 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
o 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 19(b)(1)(A) of the Federal Reserve Act) 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.

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) have been met by such bank
with respect to the branch being closed.

DEFINITIONS - For purposes of this subsection, the following definitions shall apply:
INTERSTATE BANK DEFINED.--The term “interstate bank” means a bank which maintains
branches in more than 1 State.
LOW- OR MODERATE-INCOME AREA.--The term “low- or moderate-income area” means
a census tract for which the median family income is—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 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.

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SCOPE OF APPLICATION
This section shall not apply with respect to:
 an automated teller machine;
 the relocation of a branch or consolidation of one or more branches into another branch, if the
relocation or consolidation—
 occurs within the immediate neighborhood; and
 does not substantially affect the nature of the business or customers served; or
 a branch that is closed in connection with—
o an emergency acquisition under—
 section 11(n); or
 (ii) subsection (f) or (k) of section 13; or
 any assistance provided by the Corporation under section 13(c).

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