MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Banks and Banking

By: Representative Green (72nd)

AN ACT TO REQUIRE BANKING AND FINANCIAL INSTITUTIONS TO INSTALL AUTOMATED TELLER MACHINES IN SECURE LOCATIONS; TO AMEND SECTION 81-5-100, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; AND FOR RELATED PURPOSES.  

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) The Legislature finds that the use of automated teller machines provides a banking convenience to the citizens of Mississippi by providing easy access to funds in bank accounts and that the location of such machines should be in areas that do not jeopardize the health, safety and welfare of the citizens of Mississippi. The Legislature further finds that because of the escalation of crime in our society, guidelines are necessary for determining the location of automated teller machines in order to insure the health, safety and welfare of the citizens of Mississippi and to protect banking and financial institutions from potential liability.

(2) For the purposes of this act, "automated teller machine" or "ATM" means any mechanical or electronic device in which a card or other personal account access device may be inserted in order to withdraw or deposit funds in an account at a banking or financial institution.

(3) Every banking or financial institution doing business in the state shall place or install each ATM that it establishes either at or inside secure buildings, at secure drive-up locations or other secure locations that will not jeopardize the health, safety and welfare of the citizens using such machines. Banking or financial institutions shall not place or install any ATM in any isolated or unsecured location that poses a threat of harm or danger to citizens using the ATM.

SECTION 2. Section 81-5-100, Mississippi Code of 1972, is amended as follows:

81-5-100. (1) For the purposes of this section, the following words shall have the meaning herein described unless the context shall otherwise require:

(a) "Electronic terminal" means an unmanned electronic device owned or operated by a federally insured bank or thrift through which a consumer may initiate an electronic fund transfer.

(b) "Electronic fund transfer" means any of the following:

(i) The withdrawal of cash from or the deposit of cash or checks into an unmanned electronic device, such as an automatic teller machine, but not including night depositories;

(ii) An application for or acceptance of a loan through use of an unmanned electronic device;

(iii) The transfer of funds between accounts through use of an unmanned electronic device; or

(iv) The issuance of a check by an unmanned electronic device.

(c) "Electronic fund transfer" does not mean access to accounts, the application for or acceptance of a loan, the transfer of funds between accounts or other banking services accomplished through the use of a personal computer or telephone.

(2) A state bank or thrift, with the approval of the Commissioner of Banking and Consumer Finance, may establish electronic terminals.

(3) A bank desiring to establish such an electronic terminal shall file with the commissioner a written application requesting authority to establish such a terminal. Upon receipt of such application, the commissioner shall make inquiry into the facts sufficient to enable him to determine whether or not the proposed electronic terminal will provide bank customers with convenient access to the electronic transfer of funds and the proposed electronic terminal will be placed or installed in a secure location as required by Section 1 of this act. If the commissioner's finding is favorable to the application, he shall grant the applicant a written permit to establish the terminal. These rights are extended to national banks upon the approval of the Comptroller of the Currency of the United States of America.

(4) For the use of its electronic terminals connected to sharing networks or systems, a bank may impose a fee if imposition of the fee is disclosed at a time and in a manner that allows a user to terminate or cancel the transaction without incurring the transaction fee. Such fee shall not exceed Two Dollars ($2.00) or four percent (4%) of the gross amount of the transaction, whichever is greater. An agreement to share electronic terminals shall not prohibit, limit or restrict the right of a bank to charge such fees for the use of its electronic terminals as allowed by state or federal law, or require a bank to limit or waive its rights or obligations under this section.

SECTION 3. This act shall take effect and be in force from and after July 1, 1997.