Page 37 - July 18, 2024 Bulletin

application of the branch closing rules in varying office, or any branch place of business . . . at which
situations. deposits are received or checks paid or money lent",
and would effectively have the same consequence for
Additionally, in general, there's not a specific notice
requirement for customers or regulators for just a consumers as a branch closure would.
temporary or an emergency closing under the federal Understanding the nuances of branch closing regulations
regulations. Nonetheless, it’s typically considered an is essential for banks to remain compliant and maintain
industry best practice to post information pertaining customer trust. While the guidelines may seem
to the temporary closure on the front door or in straightforward, there are complexities that require
another location the public can view it, even if only for careful consideration, and branch closings can implicate
informational purposes and general customer service rules beyond just those contained in Section 42, such
considerations. As, the Joint Policy Statement outlines as the Community Reinvestment Act, as one example.
an exception from the branch closing requirement for As such, it's crucial for banks to proactively review the
temporary closures, so long as the bank “plans to restore federal and state-specific branch closing rules with legal
branching services at the site in a timely manner”. and compliance experts when planning any changes
Moreover, if a bank is simply reducing the hours of to branch operations. This ensures that all necessary
operation for a branch, but not closing the branch notifications are provided, customer disruptions are
entirely, while notice is still generally recommended, minimized, and the bank remains in compliance with
and may be required under other federal regulations all applicable regulations. Remember, transparency and
or specific Federal regulator guidelines, this also tends clear communication are key to maintaining positive
to not be considered the “closing” of a branch which relationships with both customers and regulators. As
triggers the branch closing notification requirements of always, reach out to us at Compliance Hub for any
Section 42. additional questions!

It is important to clarify that, while the reduction of
a branch’s hours will not generally be considered the Erin serves as Associate General Counsel for
“closing” of a branch, in certain situations, the reduction Compliance Alliance. Erin graduated magna cum
of the services offered by a branch may constitute a laude from Loyola University New Orleans with a
branch closure. Namely, as the Joint Policy Statement bachelor’s degree in psychology and a bachelor’s
states, "[w]here, after a reduction in services, the degree in English She earned her Juris Doctor
resulting facility no longer qualifies as a branch, section from Saint Louis University School of Law.
While obtaining her law degree, Erin geared her
42 would apply”. The Joint Policy Statement also offers studies towards business and financial subjects
an example of when a reduction in services may trigger within the law, such as transactional drafting,
the notice requirements, suggesting that they would bankruptcy, and securities trading.
generally apply if a bank were to “replace a traditional
brick-and-mortar branch with an ATM”. As, following
this type of service change, an ATM would no longer
qualify as a "branch bank, branch office, additional

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