On August 25, 2011, the OCC issued a “Proclamation” authorizing national banks and federal savings associations to close in the “wake” of Hurricane Irene. This got me to thinking on this Friday, August 26…Why a Proclamation?
Proclamation. It sounds so regal, more befitting a King or Queen than a Comptroller (no offense to Comptrollers intended). In fact, a quick search of the Internet confirms this. In former times, and still today, banks in the UK observe holidays so declared by Royal Proclamation.
ROYAL PROCLAMATION. The Bank Holidays Act. 1871, enacted that it shall be lawful for His Majesty, as to His Majesty may seem fit, by proclamation to appoint a special day to be observed as a bank holiday, and any day so appointed shall, as regards bills of exchange and promissory notes, be deemed to be a bank holiday for all the purposes of the Act.
The following is the Royal Proclamation of King George V making December 27th. 1910, a bank holiday:
"We, considering that it is desirable that Tuesday, the Twenty-seventh day of December next, should be observed as a Bank Holiday throughout those parts of Our United Kingdom called England and Wales, and Ireland, and in pursuance of the provisions of ' The Bank Holidays Act, 1871.' do hereby, by, and with the advice of Our Privy Council and in exercise of the powers conferred by the Act aforesaid, appoint Tuesday, the Twenty-seventh day of December next as a special day to be observed as a Bank Holiday throughout England and Wales, and Ireland, and every part thereof, under and in accordance with the said Act, and We do, by this Our Royal Proclamation, command the said day to be so observed, and all his loving subjects to order themselves accordingly.”
Given at Court at St. James's, this Seventh day of November, in the Year of our Lord One thousand nine hundred and ten, and in the first Year of Our Reign.
"GOD SAVE THE KING."
And so, the United States – not to be outdone by our friends across the pond – likes to make “Proclamations” regarding bank closings. In fact, by law, it must be by Proclamation.
12 USC 95(b)(1) says, in part, “In the event of natural calamity, riot, insurrection, war, or other emergency conditions occurring in any State whether caused by acts of nature or of man, the Comptroller of the Currency may designate by proclamation any day a legal holiday for the national banking associations located in that State.”
So, when a proclamation is given to close banks, let us say to ourselves,
“GOD SAVE THE COMPTROLLER.”
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