To: ALL TENNESSEE STATE CHARTERED BANKS
SUBJECT: Automated Teller Machines (ATM)
Dated December 11, 1996
This Department has required letter notification and an application fee for the
establishment of deposit taking automated teller machines (ATMs). Since deposits
are accepted by these ATMs, the Department considers ATMs to be branches of
banks. The Department has also required letter notification prior to the
establishment of cash dispensing only ATMs. The National Bank Act and the
Federal Deposit Insurance Act have recently been amended to state that the term
"branch" does not include an automated teller machine or a remote
service unit. Therefore, neither the OCC or the FDIC requires a branch
application, notice, publication or fee for the establishment of an ATM.
Pursuant to T.C.A Section 45-2-601, this Department hereby waives any
application, notice, publication or fee for a bank domiciled in Tennessee to
establish an ATM in order for state- chartered banks to maintain competitive
equality with national banks.
This Bulletin in no way alters or affects T.C.A. Section 45-2-619 which requires
that all cash dispensing devices in Tennessee be owned, operated and established
by depository institutions domiciled in Tennessee.
Even though the Department is waiving the application, notice, publication, and
fee for the establishment of an ATM, the Department still considers a deposit
taking ATM to be a branch.
Signed: Bill C. Houston, Commissioner
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