(2) any area within a circle with a radius of 75 miles with the main office or branch of a depository institution at its

center.

(g)

"State" means any state, territory or possession

of the United States; the District of Columbia; and the

Commonwealth of Puerto Rico.

DEPLOYMENT

Sec. 4. (a) Except as provided in subsection (b) of this section, a depository institution may establish, operate and/or utilize an electronic funds transfer system at any location within any State. A depository institution may establish, operate or utilize an electronic funds transfer system in any country outside the United States to the extent allowed by laws of such country.

(b) A depository institution may offer deposit services through an electronic funds transfer system, whether owned and operated by itself or by any other entity at any location outside the State in which its main office is located only if such deposit service (į) is offered within a natural market area in which a deposit taking office or branch of a depository institution is located or (ii) is offered in States that have, through legislation or rulings on a reciprocal or other basis, permitted such services to be offered by out-of-state depository

institutions.

Provided however, a depository institution may not offer deposit services through an electronic funds transfer

system in any State (other than the State in which its main office is located) if, on or after the enactment of this

Act, such State enacts a law or certifies that the voters of such State have voted in favor of any provision which

provides explicitly that

such State does not want the

apply to the utilization of

provision of this Act to

electronic funds transfer systems for deposit services by a depository institution with a main office that is not located in that State.

(c) A depository institution which owns or operates an electronic funds transfer system may perform for other entities in connection with the operation of that system any services that such entities are authorized to undertake or offer the public.

(a) An electronic funds transfer system and the components thereof and their deployment or use at any location shall not constitute a "branch" within the meaning of any of the federal banking laws nor shall their presence or use at a location other than an office of a depository institution constitute the carrying on of the business of banking by such depository institution.

(e) No agency, department, administration or board charged with supervising a depository institution may issue regulations for the establishment, operation or

use of

electronic funds transfer systems, except that an

appropriate supervising agency may require 60 days notice of

an intent to establish an electronic funds transfer system

or the deployment or change in location of an electronic terminal at any point other than the main office or any branch location of the depository institution. By notice to a depository institution, an appropriate supervisory agency may enjoin the establishment of the system or terminal if the proposed establishment would substantially impair the solvency of the depository institution or the agency determines that it would be an unsafe or unsound business practice to establish such system or terminal.

(£) (1) State constitutions, statutes, laws cr regulations limiting, restricting or regulating the establishment, operation or use of electronic funds transfer systems for depository institutions as authorized by subsections (a), (b), (c) of this section are expressly preempted except to the extent that such constitutions, jaws, or regulations:

(i)

provide procedures substantially identical to procedures authorized in subsection (e) of this section,

(ii) provide notice requirements and error

resolution procedures for users of electronic funds transfer systems substantially similar to the requirements of the Electronic Funds Transfer Act (15.U.S.C. Section 1693 et.seg.), or

(iii) limit the authority for depository institutions to offer deposit services as allowed under subsection (b) of this section or expand authority for the offering of deposit services beyond those authorized in

subsection (b) of this section.

(2) The Board of Governors of the Federal Reserve

System is authorized to publish Board or staff

interpretations with regard to this section. Upon its own initiative or within 120 days of the request of any

depository institution, appropriate State Official or other interested party that is submitted to the Board in accordance with procedures it establishes, the Board shall issue an interpretation regarding the scope of subsection (1) of this section or its relationship to a specific provision of State or federal law, or shall make public a Board determination (accompanied by an appropriate explanation) that the question does not involve a

significant question or that additional time (not to exceed 120 days) is needed to make a proper determination.

(g) No provision of the federal banking laws or constitution or laws of any State imposing any liability, penalty, or forfeiture shall apply to any act done or omitted in good faith in conformity with any interpretation under this subsection by the Board of Governors of the Federal Reserve System, notwithstanding that, after such act of ommission has occurred, such interpretation is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.

Electronic Funds Transfer Systems Act of 1984
Section by Section Analysis

"Electronic Funds Transfer Systems Act of 1984".

Section 2 Purpose and Findings. This section sets forth the basic findings of Congress and the purposes of the

Act.

Purposes of the Act are listed as the need to

to promote competition among

facilitate interstate commerce,
financial institutions, to promote competition among
financial institutions and other businesses offering payment
services, and to afford maximum consumer and user
convenience in access to competing payment systems. The
findings of Congress indicate that federal and state
restrictions on deployment impede interstate commerce and
the ability of commercial banks to compete. The findings
indicated that Congress intends to exercise the full scope
of the Commerce Clause of the Constitution in regulating

deployment and use.

Section 3

Definitions.

This section defines the

essential terms used in the Act.

The term "depository institution" is used in Section 4 where nationwide deployment is authorized. The term "depository institution" includes all institutions holding federally insured deposits or eligible for federal insurance, bank holding companies, an association of institutions holding federally insured deposits and