In which of the following situations does a bank need to post a branch closing notice?
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A. B. C. D.B
A bank is required to post a branch closing notice in certain situations as mandated by the regulations set by the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC). The purpose of the branch closing notice is to inform customers and the public of the impending closure of a bank branch so that they can make arrangements to shift their accounts to another branch.
Out of the options given, the situation where a bank needs to post a branch closing notice is option D, where the bank closes a branch and moves it 850 feet down the street. This is because when a bank closes a branch and moves it to another location, it is considered a permanent closure of the original branch, and the bank is required to notify its customers and the public of the closure at least 90 days in advance of the closure date. This notification should include the date of closure and the address of the new location of the branch. The notice should also include information on how customers can continue to access their accounts and services during the transition period.
In option A, a bank closing a branch temporarily due to hurricane damage does not require a branch closing notice. However, the bank may need to inform its customers and the public of the temporary closure and provide alternative means for accessing their accounts and services during this time.
In option B, a bank closing a branch due to lack of business development does not require a branch closing notice, as it is a business decision taken by the bank. However, the bank may need to inform its customers and the public of the closure and provide alternative means for accessing their accounts and services.
In option C, the bank's decision not to exercise its option to purchase a branch it has been temporarily running for the FDIC as part of a purchase of a failed institution does not require a branch closing notice as it does not involve the closure of an existing branch. However, the bank may need to inform its customers and the public of any changes in the ownership or management of the branch.