The National Banking Act defines a “branch” as a place where “deposits are received, or checks paid, or money lent.” 12 USC 36(j). The regulations for this definition also include “a mobile facility, temporary facility, intermittent facility, drop box or a seasonal agency” as branches. 12 CFR 5.30(d).

An office will be exempted from any branching rules (essentially the application and notice requirements) if it does not carry on any “branch” activities. Several “nonbranch” activities are identified in the law and regulations. Three examples of facilities excluded from the definition of “branch” are:

• Remote service units (any “automated facility, operated by a customer of a bank, that conducts banking functions,” including ATMs). 12 USC 36(j)12 CFR 7.4003. An OCC interpretive letter has concluded that “automated, unstaffed facilities that engage in one or more of the core banking functions . . . are ATMs or RSUs within the meaning of section 36(j) and are not subject to branching limitations.” OCC Interpretive Letter No. 838 (April 15, 1998) (emphasis in bold added).

• A deposit production office (DPO), “so long as it does not receive deposits, pay withdrawals, or make loans.” DPOs “may solicit deposits, provide information about deposit products, and assist persons in completing application forms and related documents to open a deposit account.” 12 CFR 7.4004see also OCC Interpretive Letter No. 691 (September 25, 1995) (deposit production offices are not branches as long as deposits are not accepted at the DPO but rather are mailed by the customer to the bank after filling out preliminary forms at the DPO); OCC Interpretive Letter No. 638 (January 6, 1994) (a non-branch facility may perform deposit origination functions such as providing information on deposit products or handling application forms, as long as the activity stops short of actually receiving deposits).

• Third party messenger services (for example, deposit pick-ups and deliveries). 12 CFR 7.1012(c).