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#60831 - 02/12/03 04:25 PM Branch closing
Anonymous
Unregistered

Please forgive the anonymous post, but we have not yet announced our branch closing and need to keep it quiet for a few more days.

We've read Section 42 of the Federal Deposit Insurance Act and guidance from our regulator. We need to give 90 day notice to our regulators and 90 day notice to our customers, as well as post signs in the branch. We don't see anything that says anyone (regulators, customers etc.) can stop the closing. We intend to give the notices concurrently and close in just over 90 days, taking other actions which make it important that we can close on time.

Confirmation from the BOLers that our interpretation is correct would be very helpful and appreciated.

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General Discussion
#60832 - 02/12/03 04:40 PM Re: Branch closing
1111 Offline
Platinum Poster
1111
Joined: Jan 2003
Posts: 580
It's strictly a business decision to close a branch with the only reg requiring prior notification to customers. The only issue you could run into related to community relations in an underserved, poor, area.

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#60833 - 02/12/03 04:40 PM Re: Branch closing
RVFlyboy Offline
Power Poster
RVFlyboy
Joined: Oct 2000
Posts: 5,991
Soaring over Georgia
I believe your interpretation is correct. They cannot stop you from closing the branch. They can, however, especially if the branch is in a low- or moderate-income census tract, muddy the waters somewhat. Consumer groups are entitled to write to your regulator to request a meeting be held to get you to explain how you will continue to meet your CRA obligations with the branch closure. Ultimately, it could potentially hurt your CRA rating, but it can't be stopped by the regulators nor the customers.
_________________________
Jim Bedsole, CRCM, CBA, CFSA, CAFP
My posts - my opinions

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