Topic: Promissory Note and Bank Holiday Act
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As a national bank, are we exempt from the requirements of the Illinois Promissory Note and Bank Holiday Act, which appears to apply only to “state banks”? We would like to confirm that we do not have to notify the IDFPR of our intention to close for half days on Christmas Eve and New Year’s Eve.
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In our view, the Illinois Promissory Note and Bank Holiday Act (the “Act”) does not apply to national banks, and clearly your bank would not be required to notify the IDFPR of your intention to close for half days on Christmas Eve and New Year’s Eve. We agree that the Act’s provisions apply only to…
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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.…
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One of our branches currently is open on Saturdays, but we would like to start closing the branch for the entire day. We are planning to post a notice about the change and notify our customers. Are there any additional notification requirements that would apply?
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Yes, because this branch will remain closed for a full day every Saturday, we believe that your bank must follow the notification procedures in the Illinois Promissory Note and Bank Holiday Act (the “Act”) for regular bank closings. Under the Act, Saturdays are considered half holidays, and banks are permitted to remain closed after noon…
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We are integrating new branches as part of a recent acquisition. We will be changing service hours at these branches – in some cases, we are extending the service hours by an hour, and other cases we will be shortening the service hours by one hour. We also may close early one day for a ribbon cutting ceremony. Our current procedures for changes in hours are to provide thirty days advance notice, with conspicuous signage posted in the affected branches. Is any other notice required under Illinois law, such as the Illinois Promissory Note and Bank Holiday Act?
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We are not aware of any Illinois laws that expressly address a change in bank hours, although we agree that it would be prudent to post advance notice of the changed hours. Your bank also may wish to review relevant advertising, listings and other information to ensure that they reflect the new hours (as well…
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If we close some of our branches early for one day, do we need to notify the IDFPR? We would be closing the branches one hour early and closing the drive-throughs ninety minutes early. Will it be sufficient for us to post notice of the early closures in our branches three to four weeks in advance?
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No, your bank does not need to notify the IDFPR regarding these one-time early closings. The Illinois Promissory Note and Bank Holiday Act permits banks to close on a specified list of holidays, 12:00 noon on Saturdays, and all day on Sundays. Outside of these dates, if a bank wishes to remain closed on a…
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If we want to close for a half day on an annual basis, do we need to notify the IDFPR? For example, we would like to close at noon on New Year’s Eve.
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Yes, your bank is required to comply with the procedures for branch closings under the Illinois Promissory Note and Bank Holiday Act for a special closure that is outside of your bank’s regular weekly closures. The Illinois Promissory Note and Bank Holiday Act permits banks to close on a specified list of holidays, 12:00 noon…
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Are there any Illinois notice requirements regarding extending our hours at one of our branches? We plan to notify our customers about the change.
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No, there are no notice requirements under Illinois or federal law regarding an expansion of branch hours, although we agree that it would be prudent to post advance notice of the changed hours in your main bank and branch lobbies. Your bank also may wish to update relevant advertising, listings and other information to reflect…
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We would like to close a few branches at noon one day a week. We plan to notify our customers of the change, but want to confirm if there are any timing requirements for the notice. Also, we are considering other changes to accommodate staffing shortages, such as closing a branch lobby one extra day a week, but keeping the drive-thru open. Or locking the lobby one day a week, but permitting customers to come in if they walk up to the door. Does either action require us to notify the IDFPR?
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No, there are no specific notice or timing requirements regarding a reduction in branch hours. However, we agree that it would be prudent to notify customers in advance and to review your account agreements to see if they include any relevant customer notification requirements. You also may consider updating relevant advertising, listings and other information…
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We would like to extend the drive-through hours at one of our branches. The new hours would not affect our cutoff times. Do we have to notify our customers or the OCC, our primary regulator?
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No, we are not aware of any laws or regulations that impose notice requirements for increasing drive-through hours. We recommend that you check your account agreements to see if they include any relevant customer notification requirements. You also may consider updating relevant advertising, listings and other information to reflect the new hours (as well as…