Regulatory Alerts2005-04-11
LSA-R.S. 6:507 Closure of a Branch Office (Banks/Savings Bank)
The Louisiana Commissioner of Banks mandates that no bank or savings bank may close a branch office without adhering to specific statutory procedures. Financial institutions must submit written justification and federal notification to the commissioner at least ninety days prior to closure, while also posting conspicuous public notice at the branch thirty days in advance. The commissioner retains the authority to waive these notice requirements if necessary to prevent or alleviate an emergency affecting the institution, its employees, or its customers.
§507. Closure of branch office A. No bank or savings bank shall close a branch office except pursuant to the procedure provided by this Section. B. At least ninety days prior to the closure date, the bank shall submit in writing to the commissioner detailed reasons for the necessity of the closure, evidence that the appropriate federal banking agency has been notified of said closure, and, if applicable, the location to which the branches' accounts and safe deposit boxes are to be transferred. C. At least thirty days prior to the closure date, the bank shall post a notice in a conspicuous location in the branch office to be closed, that the branch office will be closed, stating the closure date and, if applicable, the location to which the branches' accounts and safe deposit boxes are to be transferred. D. The requirements contained in Subsections B and C may be waived by the commissioner to prevent or alleviate any condition which he may reasonably expect to create an emergency relative to that financial institution, its employees, or its customers. Acts 1987, No. 104, §1; Acts 1992, No. 62, §1, eff. Sept. 1, 1992; Acts 2003, No. 53, §1, eff. May 23, 2003.