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Bulletin B-96-3


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.

Bill C. Houston