[Code of Federal Regulations]
[Title 12, Volume 2]
[Revised as of January 1, 2003]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR208.100]

[Page 256]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 208--MEMBERSHIP OF STATE BANKING INSTITUTIONS IN THE FEDERAL RESERVE SYSTEM (REGULATION H)--Table of Contents
 
                       Subpart I--Interpretations
 
Sec. 208.100  Sale of bank's money orders off premises as establishment of branch office.

    Source: Reg. H, 63 FR 37658, July 13, 1998, unless otherwise noted. 
Redesignated at 65 FR 14814, Mar. 20, 2000. Redesignated further at 65 
FR 75841, Dec. 4, 2000.


    (a) The Board of Governors has been asked to consider whether the 
appointment by a member bank of an agent to sell the bank's money 
orders, at a location other than the premises of the bank, constitutes 
the establishment of a branch office.
    (b) Section 5155 of the Revised Statutes (12 U.S.C. 36), which is 
also applicable to member banks, defines the term branch as including 
``any branch bank, branch office, branch agency, additional office, or 
any branch place of business * * * at which deposits are received, or 
checks paid, or money lent.'' The basic question is whether the sale of 
a bank's money orders by an agent amounts to the receipt of deposits at 
a branch place of business within the meaning of this statute.
    (c) Money orders are classified as deposits for certain purposes. 
However, they bear a strong resemblance to traveler's checks that are 
issued by banks and sold off premises. In both cases, the purchaser does 
not intend to establish a deposit account in the bank, although a 
liability on the bank's part is created. Even though they result in a 
deposit liability, the Board is of the opinion that the issuance of a 
bank's money orders by an authorized agent does not involve the receipt 
of deposits at a ``branch place of business'' and accordingly does not 
require the Board's permission to establish a branch.