FDI Act Section 42: Branch Closings Quiz

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Which of the following is considered as an exception to Section 42 of the FDI Act?

Relocation of a branch within the immediate neighborhood without substantially affecting the nature of the business or customers served (correct)

Relocation of a branch to a different neighborhood

Relocation of a branch to a low-income area

Closure of a branch due to financial reasons

What type of notice is required for the relocation or consolidation of one or more branches into another branch?

Notice in an ATM, remote service facility, loan production office, or temporary branch (correct)

Notice in a local newspaper

Notice in a national publication

Notice on the institution's website

What should be included in the notice if an interstate bank proposes to close a branch in a low- or moderate-income area?

Mailing address of the FDIC and statement for mailing comments to the FDIC (correct)

Statement for mailing comments to the Federal Reserve

Statement for mailing comments to the OCC

Mailing address of the Federal Reserve

When should the notice to branch customers be posted for a proposed branch closing?

At least 30 days prior to the proposed closing Signup and view all the answers

What is one of the objectives for determining compliance with statutory requirements for branch closings?

Providing prior notification of any branch closing to its appropriate Federal banking agency and customers of the branch Signup and view all the answers

What should be included in the institution's adopted branch closing policy?

Policies ensuring compliance with Section 42 of the FDI Act and Interagency Policy Statement Concerning Branch Closing Notices and Policies Signup and view all the answers

When should an institution provide adequate notice of all branch closings to the FDIC?

At least 90 days before any closure Signup and view all the answers

What should be included in at least one regular account statement mailed to customers of the branch proposed to be closed?

Information about changes in account terms and conditions due to closure Signup and view all the answers

What is one examination objective related to determining compliance with statutory requirements for branch closings?

Determine whether internal policies for branch closings have been established by the institution. Signup and view all the answers

When should an institution provide prior notification of any branch closing?

To its appropriate Federal banking agency and customers of the branch. Signup and view all the answers

What does Section 42 of the FDI Act require financial institutions to do when proposing to close a branch?

Notify the FDIC and its customers Signup and view all the answers

What is the time requirement for providing notice of a proposed branch closing to customers as per Section 42?

At least 90 days prior to the proposed closing Signup and view all the answers

What type of facilities are considered as branches for the purpose of Section 42?

Traditional brick-and-mortar branches, or any similar banking facility other than a main office Signup and view all the answers

What information must be included in the notice of a proposed branch closing?

A detailed statement of the reasons, and statistical or other information in support of such reasons Signup and view all the answers

When did the requirement for providing notice of branch closings come into effect?

December 19, 1991 Signup and view all the answers

(True/False) Financial institutions are not required to adopt policies for closings of branches.

False Signup and view all the answers

What are the special content requirements for closing notices relating to branches in low- or moderate-income areas?

Specific content related to community impact Signup and view all the answers

What is considered as a branch for purposes of Section 42?

Traditional brick-and-mortar branch, or any similar banking facility other than a main office Signup and view all the answers

What does Section 42(b) require financial institutions to do?

Provide adequate notice of the proposed closing to its customers at least 90 days prior to the proposed closing of the branch Signup and view all the answers

What is one key requirement for financial institutions before proposing a branch closure?

Determine that they provided adequate notice of the proposed closing to its customers at least 90 days prior Signup and view all the answers