Topic: Promissory Note and Bank Holiday Act
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Does the Illinois Promissory Note and Banking Holiday Act require that we remain open at least four days a week? What does the law require to close a branch one day a week on a regular basis or to reduce the hours at a branch? We plan to notify our customers in advance of our planned changes and check our account agreements for any language that might address our hours of operation.
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The Illinois Department of Financial and Professional Regulation (IDFPR) has interpreted the Illinois Promissory Note and Bank Holiday Act to require banks to remain open at least four and a half days each week. According to the IDFPR, a bank may close on Sundays and at noon on Saturdays without notice. In addition, a bank…
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We are closing a branch to remodel for a couple of days. I believe I should notify the IDFPR and post a lobby notice. Is that right, and is there anything else I need to do?
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We agree that your bank should comply with the procedures for branch closings under the Illinois Promissory Note and Bank Holiday Act, which requires Illinois banks to take three steps before one-time closings such as this: (1) adopt a resolution authorizing the closure; (2) send a copy of the resolution to the Illinois Department of…
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We are considering closing a couple of our branches for one afternoon a week. Are there any rules that would apply to a bank reducing its hours? We are running the change by our CRA officer.
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No, we are not aware of any laws or regulations that expressly address a reduction in branch hours. We do recommend checking your account agreements to ensure that they do not include relevant notification requirements. We also recommend posting advance notice of the changed hours in your main bank and branch lobbies, as well as…
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We plan to close some of our branches on a day we normally would be open in order to allow our employees to attend a day-long volunteer event. What do we need to do in order to close those branches for that day? The day we want to close is not a holiday, and we are a state-chartered bank.
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The Illinois Promissory Note and Bank Holiday Act requires Illinois banks to take three steps before a one-time closing such as this: (1) adopt a resolution authorizing the closure; (2) send a copy of the resolution to the Illinois Department of Financial and Professional Regulation; and (3) conspicuously post a notice in the lobby of…
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We were recently acquired by a bank in Iowa. We want to decrease our drive-through and walk-up hours, but increase our lobby hours. We plan on posting advance notice of the change in our lobby. How many days’ notice should we provide? We asked the OCC, but we were informed to check state law.
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We are not aware of any laws that expressly address a change in bank hours, including the amount of customer notice to provide. We recommend that you check your account agreements to see if they include any relevant notification requirements. You also should consider updating relevant advertising, listings and other information to reflect the new…
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How many days’ notice must a state-chartered bank provide before closing on a federal holiday?
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For a state-chartered bank, the answer depends on whether the federal holiday is listed as a legal holiday in the Illinois Promissory Note and Bank Holiday Act (the “Act”). Illinois banks are not required to provide advance notice when they plan to remain closed on any day that is designated within the Act as a…
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We are a national bank and have decided to remain closed for more than one day per week. Is that permissible? If so, what notice is required before making this change?
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Yes, as a national bank, you are permitted to be closed more than one day a week, and there are no specific notice requirements for changing your regular days of operation, although we recommend providing your regulator and your customers with advance notice of the schedule change. Federal law requires FDIC-insured banks to notify their…
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We have decided to reduce our bank’s lobby hours. Are there any notification requirements in Illinois that are required prior to this change?
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No, we are not aware of any laws that expressly address a reduction in branch hours. We do recommend that you check your account agreements to ensure that they do not include relevant notification requirements. We also recommend posting advance notice of the changed hours in your main bank and branch lobbies, as well as…
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Does the Illinois Promissory Note and Bank Holiday Act apply to national banks? There is a provision in the Act that requires a bank to send a board resolution to the Commissioner of Banks and Real Estate if the bank wishes to remain closed on a weekday or on any other occasion that is not a bank holiday.
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In our view, the Illinois Promissory Note and Bank Holiday Act (the “Act”) does not apply to national banks. State officials may not exercise visitorial powers with respect to national banks (with very limited exceptions). In general, visitorial powers include conducting examinations, inspecting or requiring the production of books or records, requiring the filings of…
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We have branches that are closed on Sundays, except for a limited number of drive-up hours. Does Illinois law require any advance notice if we are going to discontinue the drive-up hours and completely close those branches on Sundays?
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We do not believe that advance notice is required if closing a branch on a Sunday, though it is a best practice to provide some sort of customer notice. The Illinois Promissory Note and Bank Holiday Act governs bank closings, and it sets default bank holidays as being noon onwards on Saturdays and any other…