Topic: Promissory Note and Bank Holiday Act
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Our bank wants to close one hour earlier than we currently close on Fridays. How far in advance do we need to notify our customers of our new hours?
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We are not aware of any Illinois or federal law that requires you to notify customers when altering branch hours. However, we recommend checking your account agreements to ensure they do not include relevant notification requirements. We also recommend posting advance notice of the changed hours in the lobby of any affected branch and on…
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What kind of notice are we required to give customers if we alter one of our branch’s hours?
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We are not aware of any Illinois or federal law that requires you to notify customers when altering branch hours. However, we recommend checking your account agreements to ensure they do not include relevant notification requirements. We also recommend posting advance notice of the changed hours in the lobby of any affected branch and on…
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A borrower died and their mortgage loan is now in default. The deceased borrower’s spouse resides in the home and is in title to the property but is not a borrower on the loan. We are aware that we cannot file a foreclosure action until the loan is 120 days delinquent. Are we required to send a notice of acceleration after the third missed payment, and can you provide a sample of such a notice?
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Whether a notice of acceleration is required generally depends on the terms of your loan agreement. However, if the mortgage loan is a “high risk home loan” as that term is defined in the Illinois High Risk Home Loan Act, you are required by statute to deliver a notice to the borrower informing them of…
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If we want to close one of our offices on September 13th, what do we need to send to the IDFPR?
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The Promissory Note and Bank Holiday Act provides that if a state bank wishes to remain closed on a particular day that is not a holiday or a day on which the bank has previously selected to regularly remain closed, the bank must send the IDFPR a copy of a resolution adopted by the bank’s…
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Are Illinois banks required to close on November 8, 2022, for the general election? If not, do we need to send notice to the IDFPR if we want to remain closed on that day?
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No, we do not believe that Illinois banks are required to close on November 8, 2022, for the general election. Additionally, if a bank decides to remain closed on that day, we do not believe it needs to notify the IDFPR. The Promissory Note and Bank Holiday Act states “a bank may, but is not…
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We are planning to remain closed on Monday, June 20, 2022, in observance of the Juneteenth holiday. Do we need to request permission from the Illinois Department of Financial and Professional Regulation (IDFPR) to do so?
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No, you do not need to request permission from the IDFPR to remain closed on June 20, 2022. The IDFPR has issued a statewide proclamation authorizing state-chartered institutions to remain closed on June 20, 2022, if they choose to do so. This year, the Federal Reserve System will recognize Juneteenth National Independence Day on Monday,…
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If a bank chooses to remain open on a federal holiday, would its FDIC insurance coverage lapse on that day? Would there be any concerns if our bank chooses not to close for the Juneteenth holiday, since it will fall on a weekend day for 2022?
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No, FDIC insurance coverage does not lapse when an insured bank chooses to remain open on a federal holiday. We also do not believe there any concerns associated with choosing to remain open on the Juneteenth federal holiday (which the Federal Reserve System recognizes on Monday, June 20 for 2022, since June 19 falls on…
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We are considering closing one of our bank’s branches all day on Thursdays and Saturdays every week. Is this allowed under the Promissory Note and Bank Holiday Act, or are we only able to close on one day that is normally a business day?
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No, we do not believe you are permitted to close a branch on a normal business day and all-day on Saturday every week under the Promissory Note and Bank Holiday Act. Our understanding is that the Act requires banks to remain open at least four and a half days each week. According to the Illinois…
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We are considering closing one of our branches every Thursday, but our other branches in the area would remain open during their regular business hours. Are we required to follow the Promissory Note and Bank Holiday Act’s requirements for regular bank closings if we are closing only one of our branches on Thursdays? Are there any other applicable state laws that we should consider?
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Yes, we believe your bank must follow the procedures in the Promissory Note and Bank Holiday Act for regular closings on a day other than Sunday, even when closing only one branch. Although the Act does not specifically mention branches, we have previously discussed this law with a representative of the Illinois Department of Financial…
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We are considering permanently changing the drive-up banking hours at our Illinois branches by thirty minutes, so that we open thirty minutes later than we do currently. Does Illinois law require that we provide notice of the reduction in hours to our customers?
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No, we are not aware of any Illinois law or regulation that requires notice of a reduction in your drive-up banking hours. However, we recommend checking your account agreements to ensure they do not include relevant notification requirements. We also recommend posting advance notice of the changed hours in your Illinois branch lobbies and on…