On June 29, the OCC issued Bulletin OCC 2017-24, announcing its revised Comptroller’s Licensing Manual booklet, “Branch Closings,” replacing the booklet issued in April 2003. According to the Bulletin, the revised booklet describes the 90-day advance notice to the OCC and branch customers that a bank must observe before closing a branch. It also explains the specific timing, procedures, and forms of notice the bank must supply. The booklet, which applies to all national banks and federal savings associations, summarizes the different notice requirements for each under Section 42 of the Federal Deposit Insurance Act. It also lists steps for filing branch closing notices including: (i) sending advance notice to the OCC at least 90 days before closing; (ii) mailing notices to customers at least 90 days in advance; (iii) posting conspicuous notices at the branch at least 30 days in advance; and (iv) sending final closing notice to the OCC after the branch closes.
The notice requirement of Section 42 assists the OCC in assessing a bank’s record of opening and closing branches. The OCC reviews this record in examinations for compliance with Section 42 and in assessing performance under the Community Reinvestment Act (CRA). The OCC, the Board of Governors of the Federal Reserve System, and the Federal Deposit Insurance Corporation (FDIC) adopted a “Joint Policy Statement on Branch Closing Notices and Policies” (Joint Policy Statement) in June 1991 to provide guidance regarding the requirements of the branch closing statute.
On July 5, the OCC issued an additional bulletin, OCC Bulletin 2017-25, revising the “General Policies and Procedures” booklet of the Comptroller’s Licensing Manual issued in March 2008. This booklet explains how to file applications or notices with the OCC, requirements of the filings, and the OCC processes for licensing filings. The revised booklet applies to national banks, federal savings associations, and other entities that are involved in certain transactions including: (i) organizing a new bank; (ii) opening or closing a branch; (iii) establishing subsidiaries; (iv) some changes to capital or debt; and (v) certain other transactions. The booklet describes important policies and includes sample forms, filing requirements, and fees. It also covers the OCC’s review, approval or denial, and subsequent consummation requirements and appeal procedures.