Topic: Establishing and Relocating a Branch
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We are a state-chartered bank from outside of Illinois that operates three branches in Illinois. We need to temporarily relocate one of the Illinois branches to a property approximately five hundred feet away so that we can complete renovations in the original branch. We are aware that we will need to seek approval from the FDIC and our home state regulator to do this, but are there any Illinois notice requirements that we need to fulfill?
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Yes, we recommend sending an informal notice to the Illinois Department of Financial and Professional Regulation (IDFPR) based on guidance we received from an IDFPR attorney. Under the Illinois Banking Act, an out-of-state bank lawfully operating in Illinois must notify the IDFPR of its intent to establish an additional branch in Illinois within thirty days…
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We are an Illinois-chartered bank, and our primary federal regulator is the FDIC. We recently opened a new branch in Illinois with all the necessary approvals. Do we need to send a notice of opening to the FDIC and Illinois Department of Financial and Professional Regulation (IDFPR)’s Division of Banking?
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No, we do not believe you need to send any additional notices to the FDIC or IDFPR’s Division of Banking if you have already received all necessary approvals to establish the branch, unless your bank is required to file a notice with the IDFPR’s Division of Banking before beginning operations at a new branch due…
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Does Illinois have any special signage requirements for in-state branches owned by an out-of-state bank? We found some requirements for insurance products and for holiday closings, but we want to make sure we’re not missing anything else.
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We are not aware of any special signage requirements for branches of out-of-state banks in Illinois. As you noted, the Illinois Promissory Note and Bank Holiday Act requires a public notice when a bank will be closing on a day other than days when the bank is closed on a regular basis. Also, the Illinois…
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We opened two loan deposit offices (LPOs) this year. Should we include them in our CRA Public File as “branches opened”? The LPOs have not been authorized as branches.
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No, we do not believe that you should include the new LPOs with your list of new branches in your CRA public file. An LPO is not considered a branch under the CRA unless it has been authorized as a branch through the regulatory approval process. In addition, Regulation BB indicates that including information about…
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Are we required to notify the IDFPR or the Federal Reserve Board regarding new directors or changes in key management positions? What notices are required to change our corporate headquarters?
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In general, you do not need to notify your state or federal regulator regarding a new director or a change in key management personnel. However, there are some instances when prior notice is required, such as when the new director or manager is obtaining control of the bank, your bank is not in compliance with…
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We opened a new corporate headquarters that is just an office building, with no banking facilities — we do not accept deposits, make loans, provide teller services, etc. Since this is our main office location, do we need to post the CRA public notice there?
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We do not believe that a CRA public notice is required to be posted at your new corporate headquarters, per the discussion below. The CRA regulations require each institution to post CRA public notices “in the public lobby of its main office and each of its branches.” 12 CFR 228.44. Based on the facts in…
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We are opening a new administrative office, for operations staff, with no depositary functions. Do we need to notify anyone of the opening, beyond sending a letter to our state and federal regulators?
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We are not aware of any additional steps that you would have to take before opening an administrative office, provided that no “deposits are received or checks paid or money lent” at the office. (See definition of “domestic branch” under the FDIC Act, 12 USC 1813(o).)