Does the Illinois Promissory Note and Banking Holiday Act require that we remain open at least four days a week? What does the law require to close a branch one day a week on a regular basis or to reduce the hours at a branch? We plan to notify our customers in advance of our planned changes and check our account agreements for any language that might address our hours of operation.

The Illinois Department of Financial and Professional Regulation (IDFPR) has interpreted the Illinois Promissory Note and Bank Holiday Act to require banks to remain open at least four and a half days each week. According to the IDFPR, a bank may close on Sundays and at noon on Saturdays without notice. In addition, a bank may select one additional day each week to remain closed by following four steps set out in the Act: (1) adopting a resolution authorizing the closure; (2) recording an officer-certified copy of the resolution; (3) publishing the resolution in a county-wide newspaper once each week for three successive weeks before the closure; and (4) submitting evidence of the newspaper publication to the IDFPR.

Note that the Act does not mention branches. However, we spoke with a representative of the IDFPR, and it is the agency’s position that the Act also applies to branch closings. Accordingly, if you wish to close a branch regularly for a full day other than Sunday, your bank should follow the steps in the Act for that branch, as well.zzz

We are not aware of any laws or regulations that expressly address a reduction in branch hours. However, we agree that it would be prudent to notify customers in advance and to review your account agreements for any provisions regarding your notices for reductions of hours or days that your bank or a branch may be open. In addition, we note that a change in hours can raise issues under the Community Reinvestment Act (CRA) in some instances. One factor in your bank’s CRA service performance rating is whether your services, “including, where appropriate, business hours,” vary in a way that inconveniences customers in your bank’s assessment area. Consequently, you may wish to document your reasons for making the contemplated changes, although you are not required to do so.

For resources related to our guidance, please see:

Promissory Note and Bank Holiday Act, 205 ILCS 630/17(a) (“The following days shall be legal holidays in the State of Illinois upon which a bank, but is not required to, remain closed: . . . . From 12 o’clock noon to 12 o’clock midnight of each Saturday shall be considered a half holiday. In addition to such holidays and half-holidays, a bank may select one day of the week to remain closed, as provided in subsection (b) of this section
Promissory Note and Bank Holiday Act, 205 ILCS 630/17(f) (“. . . no bank in this State, which by law or custom is entitled to remain open or to close for the whole or any part of any day selected by it to remain open or to close, is compelled to close, or to remain open for the transaction of business . . . except at its own option
Promissory Note and Bank Holiday Act, 205 ILCS 630/17(b) (“Any bank doing business within this State may select any one day of the week to remain closed on a regular basis upon adoption of a resolution by the board of directors of such bank designating the day selected and upon filing and publishing a copy of such resolution as hereinafter required. Any such resolution shall be deemed effective for the purpose of this Section only when a copy thereof, certified by an officer having charge of the records of such bank, is filed with the Recorder of the county in which such bank is located and published once each week for 3 successive weeks in a newspaper of general circulation in such county. Such publication shall be accomplished by, and at the expense of, the bank, and the bank shall submit to the Commissioner of Banks and Real Estate such evidence of the publication as the Commissioner shall deem appropriate. Any such selection shall remain in full force and effect until a copy of the later resolution of the board of directors of such bank, certified in like manner, terminating or altering any such prior selection shall be filed and published in the same manner as such prior resolution.”)
IDFPR 2017 Bank Holiday Schedule (“In addition to the holidays cited above, banks are authorized to close at 12:00 noon on each Saturday and all day on Sunday. A bank may also select one additional day of the week to remain closed by following the procedures outlined in Section 17(b) of the Promissory Note and Bank Holiday Act [205 ILCS 630/17(b)].”)
Community Reinvestment Act, Appendix A to Part 228 – Ratings, Part (b)(3)(ii)(C) (“The Board rates a bank’s service performance ‘high satisfactory’ if, in general, the bank demonstrates: . . . Its services (including, where appropriate, business hours) do not vary in a way that inconveniences its assessment area(s), particularly low- and moderate-income geographies and low- and moderate-income individuals . . .”)