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possessory or ownership interest in the particular facility, the CBCT would not seem to be a branch bank as understood by the court. A transactional fee is not the substantive equivalent of rent. The term “rent” used in context with its companion term "own" connotes payment for an interest in real or personal property, not payment for the performance of elecrtronic bank services. For example, a bank does not pay for the services provided by a brick and mortar branch, it pays for the right to take possession of and use that building as bank premises. On the other hand, the payment of transactional fees, pursuant to the enclosed service and sharing agreements, creates no such ownership or necessary interest in the machine for the accessing bank. Only the right to receive certain electronic services is vested in the bank. Accordingly, it is clear that the facilities in question will not be established (i.e., owned or rented) by the affiliated national bank[s]”.

Very truly yours

Assistant Director
Legal Advisory Services Division

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Sharing Between States


(N.B. Prior law limited location of RSUS to anywhere in Kansas: 1984 law has eliminated "Kansas" leaving the location as an ambiguous "wherever," effective 7/1/84)



Sharing within State


bank's principal
office is located
(this does not apply

to ATMs)
3) Capital and reserve

requirements do not apply to the establishment of electronic facilities.


Mandatory sharing between
like institutions

1) Satellite devices

are not branches 2) Geographic restric

tions are placed on their deployment


1) Mandatory sharing of

off-premise RSUS bet-
ween state and nat'l

2) Mandatory sharing of

off-premise RSUS
between state and
federal S&LS

1) RSUS are not

branches 2) They may be located



1) RSUS are not

2) Deployment subject

to geographic

1) Permissive sharing bet

ween state or federal
banks, S&LS & credit
unions w/in the same
county where each has
its principal office or

outside of the county
2) Permissive sharing bet-

ween state banks, S&LS
outside of their county
if dispensing of funds
is the only transaction
available to the out of
county user


Sharing is permitted if it
falls w/in the geographic
restriction of branching

1) ATMs are branches
2) Branching is sub-

ject to geographic restrictions

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