FOOTNOTES

1. Effects of Information Technology on Financial Services Systems (Washington, D.C.: U.S. Congress, Office of Technology Assessment, OTA-CIT-202, September 1984) at 118.

2.

3.

4.

5.

6.

7.

8.

Felgan, "Shared ATM Networks: Market Structure and Public
Policy," New England Economic Review, Jan./Feb. 1984.

See attached state-by-state survey of ATM interchange laws.

12 U.S.C. $36.

68 Cong. Rec. 2171 (1927).

534 F.2d 921 (D.C. Cir.), cert. denied, 429 U.S. 862 (1976).
534 F.2d at 947 n. 98.

See, e.g., State Bank of Fargo v. Merchants National Bank
and Trust Company, 593 F.2d 341 (8th Cir. 1979); State of
Illinois ex rel. Lignous v. Continental Illinois National
Bank and Trust Co., 536 F.2d 176 (7th Cir.), cert. denied,
429 U.S. 871 (1976); and State of Colorado ex rel. State
Banking Board v. First National Bank of Fort Collins, 540
F.2d 497 (10th Cir. 1976), cert. denied, 429 U.S. 1091
(1977).

9.

10.

12 C.F.R. $5.31.

See, e.g., letter from Richard V. Fitzgerald, Letter No.
160, [1981-82 Transfer Binder] Fed. Banking L. Rep. (CCH)
185, 241 (1980); letter of July 7, 1980, from John E. Shockey
[1981-82 Transfer Binder] Fed. Banking L. Rep. (CCH) 85,241
1980); letter of July 7, 1980, from John E. Shockey [1981-
82 Transfer Binder] Fed. Banking L. Rep. (CCH) 85,234
(1980); letter of October 18, 1979, from Richard V. Fitzgerald
[1981-82 Transfer Binder] Fed. Banking L. Rep. (CCH) 85,208
(1979); letter of October 19, 1977, from John E. Shockey
[1977-78 Transfer Binder] Fed. Banking L. Rep. (CCH) ¶85,050
(1977); and letter of October 3, 1977, from Richard V.
Fitzgerald [1977-78 Transfer Binder] Fed. Banking L. Rep.
(CCH) 85,060 (1977).

No. 83-1006T, slip op. (W.D.N.Y. April 6, 1984).

11.

12.

New York Banking Law $105.

39-248 0-84--12

84-7424,48

UNITED STATES COURT OF APPEALS

FOR THE SECOND CIRCUIT

ON APPEAL FROM A JUDGMENT OF THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF NEW YORK

BRIEF OF AMICUS CURIAE
MASTERCARD INTERNATIONAL INC.

SKADDEN, ARPS. SLATE,

MEAGHER & FLOM

919 Third Avenue

New York, New York 10022 (212) 371-6000

Attorneys for Amicus Curiae

Mastercard International Inc.

Of Counsel

WILLIAM HUGHES MULLIGAN

VAUGHN C. WILLIAMS

LAWRENCE J. BLOCK

i

TABLE OF CONTENTS

PAGE

iii

2

2

4

Table of Authorities

Statement of Issues and Statement of the Case

Preliminary Statement

MasterCard Has a Substantial Interest in This Appeal

I. THE COURT BELOW ERRED BY REJECT-
ING TWO BASIC ELEMENTS OF THE
DEFINITION OF BRANCH

A. The McFadden Act .

B. The Three-Part Definition of Branch

C. The Court Erred by Rejecting the
Owned-or-Rented' Criterion

D. The Owned-or-Rented" Criterion is a Ra-
tional and Traditional Means of Distin-
guishing Between Branching and Non-
Branching Activities

77

9

10

14

E. The Court Erred by Rejecting the Com-
petitive Advantage Criterion

15

II. THE DISTRICT COURT'S OPINION WOULD
PUT NATIONAL BANKS AT A SUBSTAN-
TIAL COMPETITIVE DISADVANTAGE

18

A. Many States Permit State Banks to Establish
ATMs Not Subject to Any Geographic
Restrictions

18

B. Some States Permit State Banks to Establish
ATMs Not Subject to Any Capital Re-
quirements

19

ii

C. Other Financial Institutions Are Permitted
to Establish ATMs Not Subject to Geo-
graphic Restrictions

III. CONCLUSION

ADDENDUM

PAGE

20

21

IA-2A

TABLE OF AUTHORITIES

Cases:

First National Bank v. Dickinson, 396 U.S. 122 (1969)

PAGE

8

First National Bank v. Walker Bank and Trust Co., 385 U.S. 252 (1966), reh. denied, 385 U.S. 1032 (1967)

8

Gravois Bank v. Board of Governors, 478 F.2d 546 (8th Cir. 1973). .

Independent Bankers Ass'n of America v. Smith, 534 F.2d 921 (D.C. Cir.), cert. denied, 429 U.S. 862 (1976)

State Bank of Fargo v. Merchants National Bank and Trust Company, 593 F.2d 341 (8th Cir. 1979). . .

State of Colorado ex rel. State Banking Board v. First National Bank, 540 F.2d 497 (10th Cir. 1976), cert. denied, 429 U.S. 1091 (1977) . . .

State of Illinois ex rel. Lignoul v. Continental Illinois National Bank and Trust Co., 536 F.2d 176 (7th Cir.) cert. denied, 429 U.S. 871 (1976) Whitney National Bank v. Bank of New Orleans, 323 F.2d 290 (D.C. Cir. 1963), rev'd on other grounds, 379 U.S. 411 (1965)

Statutes

13

Passim

11

11

11

13

Bank Holding Company Act, 12 U.S.C. § 1841 et seq

13

National Bank Act (McFadden Act), 12 U.S.C. § 36 (as amended 1933)

Passim