This bulletin is intended to provide state-chartered banks with
guidance relative to the operation of Automated Teller Machines
and combination offices for Automated Teller Machines, Deposit
Production Offices and Loan Production Offices (ATM/DPO/LPO) and
supercedes Department of Financial Institutions Bulletin B-96-3.
The Department does not consider an ATM to be a “branch”
under Tennessee law. Furthermore, a loan production office as
defined by Department Rule 0180-31-.02 is not a branch. Finally,
a deposit production office whose activities are limited to soliciting
accounts, providing information about deposit products and assisting
customers in completing application forms and related documents
to open a deposit account is not a branch.
Since an ATM, LPO or DPO are not considered to be a branch separately,
they will not be considered to be a “branch” when
they are combined in one location. If a combination office includes
a DPO, the customer must perform withdrawal transactions in person
at a branch office of the bank, by mail, by electronic transfer,
or a similar method of transfer.
A Tennessee state-chartered bank establishing an ATM, LPO, or
any combination of an ATM, DPO or LPO at a location other than
a main office or branch of the bank, as approved by the Department,
must provide prior written notice to the Department. If an LPO
is part of the combination office, compliance with Rule 0180-31-.02
is required. In addition, if an LPO or ATM is part of the combination
office, all applicable fees must be submitted in accordance with
Rule 0180-7-.08. The Commissioner may object to banks establishing
combination offices, based upon safety and soundness concerns.
Please direct questions regarding this Bulletin to Tod K. Trulove,
Assistant Commissioner – Bank Division, at 615/741-6013
or Tina G. Miller, Staff Attorney, at 615/532-1030.
Kevin P. Lavender
Commissioner
