§ 6-603. Emergency closing.

A.  Power of the Commissioner.  Whenever the Commissioner is of the opinion that an emergency exists or is impending in this state or in any part or parts of this state, he may, by proclamation, authorize institutions located in the affected area or areas to close any or all of their offices.  In addition, if the Commissioner is of the opinion that an emergency exists or is impending, which affects or may affect a particular institution, or a particular office or offices thereof, but not institutions located in the area generally, he may authorize the particular institution or office or offices so affected to close.  The office or offices so closed shall remain closed until the Commissioner proclaims that the emergency has ended, or until such earlier time as the officers of the institution determine that one or more offices, theretofore closed because of the emergency, should reopen, and, in either event, for such further time thereafter as may reasonably be required to reopen.  If an emergency exists such that, in the opinion of the Commissioner, one or more institutions in the affected area will not be able to resume business at the closed offices within a reasonable period of time, the Commissioner may authorize the affected institutions to open one or more temporary facilities at locations outside of the affected area, including branch facilities, without formal application or fee, after notice to and approval by the Commissioner.  Any temporary facility opened under this subsection may remain open until the Commissioner declares that the emergency has passed, at which time the institution shall close the temporary facility or seek approval to remain at the location through filing of a formal application and payment of any required fee.

B.  Powers of officers.  Whenever the officers of an institution are of the opinion that an emergency exists or is impending, which affects or may affect one or more or all of an institution’s offices, they shall have the authority, in the reasonable and proper exercise of their discretion, to determine not to open any one or more or all of such offices on any business or banking day or, if having opened, to close any one or more or all of such offices during the continuation of such emergency, even if the Commissioner has not issued and does not issue a proclamation of emergency.  The office or offices so closed shall remain closed until such time as the officers determine that the emergency has ended, and for such further time thereafter as may reasonably be required to reopen; however, in no case shall such office or offices remain closed for more than forty-eight (48) consecutive hours, excluding other legal holidays, without requesting the approval of the Commissioner.

The officers of an institution may close any one or more or all of the institution’s offices on any day or days designated by proclamation of the President of the United States or the Governor of this state as a day or days of mourning, rejoicing, or other special observance.

C.  Notice to Commissioner.  An institution closing an office or offices pursuant to the authority granted under subsection B of this section shall give as prompt notice of its action as conditions will permit, and by any means available, to the Commissioner or, in the case of a national bank, to the Comptroller of the Currency.

D.  Effect of closing.  Any day on which an institution, or any one or more of its offices, is closed during all or any part of its normal banking hours pursuant to the authorization granted under this section shall be, with respect to such institution or, if not all of its offices are closed, then with respect to any office or offices which are closed, a legal holiday for all purposes with respect to any banking business of any character.  No liability, or loss of rights of any kind, on the part of any institution, or director, officer, or employee thereof, shall accrue or result by virtue of any closing authorized by this section.

The provisions of this section shall be construed and applied as being in addition to, and not in substitution for or limitation of, any other law of this state or of the United States, authorizing the closing of an institution or excusing the delay by an institution in the performance of its duties and obligations because of emergencies or conditions beyond the institution’s control or otherwise.

E.  National banks.  This section shall apply to national banks only with the approval of the Comptroller of the Currency.

F.  As used in this section, the term “institution” means banks, credit unions, and savings associations chartered under the laws of this state.  The term also includes banks, credit unions, and savings associations chartered under the laws of another state that have branch offices in this state unless the laws of the other state provide a more restrictive rule in the case of emergencies.

Added by Laws 1971, c. 352, § 8.  Amended by Laws 2007, c. 80, § 4, eff. Jan. 1, 2008.