Compliance

Compliance Q&A: Branch Office Closures

Must CUs go through a specific process before permanently closing branch offices?

January 13, 2012
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A No. Federally insured banks are required to go through such a process, but NCUA’s rules and regulations contain no such requirements for credit union branch closures.

However, credit unions will want to let members know about branch closures before they occur.

Credit unions often ask whether the Worker Adjustment and Retraining Notification (WARN) Act applies to branch closures. It requires employers to provide notification 60 calendar days in advance of “plant closings and mass layoffs.”

So, it’s unlikely that it would ever apply to credit union branch closings. And, there’s no reference to the WARN Act in NCUA's regulations or guidelines.

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