IBA Compliance Connection

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Does the Promissory Note and Bank Holiday Act apply only to full-day closures or does it also apply to early closures?

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Yes, the Promissory Note and Bank Holiday Act (PNBHA) generally applies to early closures, although according to the Illinois Department of Financial and Professional Regulation (IDFPR), it would not apply to an early closure of a single hour.

The PNBHA expressly addresses full-day closures but is silent on early closures of less than a day. The IDFPR has advised us that a bank planning to close at noon on a non-holiday weekday would be required to follow the PNBHA’s notification procedures for the closure. In other words, the bank would be required to send the IDFPR a copy of a resolution adopted by its board of directors authorizing the closure, and it must post notice of the closure at least three weeks in advance. However, in a follow-up conversation, the IDFPR also advised us that a bank closing one hour early on a particular day would not be required to follow the PNBHA’s closing procedures.

If your bank plans to reduce its banking hours on a particular day by more than one hour but less than a half day, we recommend contacting the IDFPR for guidance on whether you should follow the PNBHA’s early closing procedures.

For resources related to our guidance, please see:

  • Promissory Note and Bank Holiday Act, 205 ILCS 630/17(c) (“If an occasion arises when a state bank wishes to remain closed on a particular day, other than a day on which the bank has selected to remain closed on a regular basis as provided in this Section, such state bank may remain closed on such an occasion after first sending to the Commissioner a copy of a resolution adopted by the board of directors authorizing the bank to remain closed on such occasion and notice of the intent to remain closed on such occasion shall be conspicuously posted in the lobby of the main banking office and any branches of such bank for at least 3 weeks in advance of such occasion. Any day which any bank doing business within the State shall select to remain closed pursuant to this Section shall, with respect to such bank, be treated and considered as a Sunday.”)