Branch Closing Notice Requirements

D

According to the Community Reinvestment Act (CRA) and its implementing regulation, the Office of the Comptroller of the Currency (OCC) requires national banks to provide notice to the public and to the OCC before closing a branch office or relocating a main office or a branch office.

In this case, First National Bank would be required to give a branch closing notice if it plans to close its near-town neighborhood branch (Option D) because it is a branch office. A branch office is defined as a place of business of a national bank that is established for the purpose of carrying on banking activities, including deposit-taking.

Removing an ATM from the local grocery store (Option A) does not constitute closing a branch office or relocating a main office or a branch office. An ATM is not considered a branch office.

Opening a deposit-taking facility in a kiosk during a college fair for one weekend (Option B) also does not constitute closing a branch office or relocating a main office or a branch office. However, if First National Bank were to establish a permanent branch office in the kiosk, it would need to provide notice to the public and to the OCC before doing so.

Moving its central branch across the street (Option C) would also require First National Bank to give notice to the public and to the OCC because it is relocating a main office. A main office is defined as the main office of a national bank designated in its organization certificate, articles of association, or by-laws.

In summary, First National Bank would be required to give a branch closing notice if it plans to close its near-town neighborhood branch (Option D).