Topic: Branch Closing
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We are selling one of our branches to another financial institution. Do we need to notify our state or federal regulators? Do we need to notify consumers when we close a branch?
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We are not aware of any requirement to notify your federal regulators when you sell a branch to another financial institution, provided that the branch will not be closed. We are also not aware of any Illinois law that addresses a branch closing. Of course, it is likely a prudent practice to notify any branch…
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What notifications are required when we reduce our hours and move to offering only drive-through services on Saturdays?
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We are not aware of any Illinois or federal law that addresses a reduction in hours. The state law we found closest to this question is the Illinois Promissory Note and Bank Holiday Act. This is principally a permissive Act that addresses days on which banks are closed in the context of whether the day…
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We’re updating our emergency closing procedures. When we have to close a branch or change our branch hours, which agencies should we notify? The FDIC said we don’t have to call them when we contacted them this week.
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We agree that you do not need to notify the FDIC when you close a branch during a banking emergency. The Banking Emergencies Act authorizes the Illinois Department of Financial and Professional Regulation (IDFPR) to issue proclamations that permit banks in Illinois to close or alter their hours due to banking emergencies. 205 ILCS 610/2.…