Ga. Comp. R. & Regs. R. 80-1-15-.03 - Messenger Services

(1) For purposes of this Rule, the below terms shall be defined as follows:

(a) "Branching" shall mean the receipt of deposits, payment of checks, or lending of money.

(b) "Messenger service" shall mean any service used by a bank and its customers to pick up from and deliver to, specific customers at locations such as their homes or offices, items related to transactions between the bank and such customers.

(2) Banks may establish and operate a messenger service or use, with its customers, a third-party messenger service. Banks may use the messenger service to transport items related to the bank's transactions with its customers without the messenger service being approved as a branch provided that the messenger service does not perform any branching functions. In establishing or using such a messenger service, a bank must establish terms and conditions in order to ensure compliance with this Rule and safe and sound banking practices.

(3) Banks may use, with its customers, a messenger service to pick up from, and deliver to, customers items related to branching functions without the messenger service being approved as a branch so long as the messenger service is established and operated by a third-party. Under no circumstance will such messenger service be authorized to perform branching functions. In using such a messenger service, the bank must establish terms and conditions in order to ensure compliance with this Rule and safe and sound banking practices.

(4) The Department will review the facts and circumstances and determine whether a messenger service is established by a third-party. However, a messenger service will always be established by a third party if:

(a) A party other than the bank owns the messenger service and its facilities (or rents these from a party other than the bank), and who employs the personnel engaged in the provision of the service;

(b) The party retains ultimate discretion as to the limits of the geographic area and the customers it will serve;

(c) The party maintains ultimate responsibility over its scheduling and routing;

(d) The party operates under a separate name from the bank and does not advertise the service as being provided by the bank;

(e) The party assumes full responsibility for all items in transit, including the provision of adequate insurance to cover employee fidelity and any other losses while items are in the custody and control of the party; and

(f) The party acts as the agent for the customer while the items are picked-up, transported, and delivered.

(5)

(a) The bank may defray all or part of the costs incurred by the customer for use of the messenger service, consistent with safety and soundness and prudent fiscal policy. Any payment by the bank may not exceed the actual charge for the services rendered.

(b) The bank shall deem items for deposit to be received by the bank at the time they are credited to the customer's account at the bank or a branch office.

(c) The bank shall deem items representing withdrawals to be paid when the items are delivered to the messenger service.

(6) Banks may provide messenger services for the pick-up and delivery of items related to or not related to branching. They may do so by establishing their own service or by use of a third-party service. Such services may be provided anywhere and will not be considered branching.

Notes

Ga. Comp. R. & Regs. R. 80-1-15-.03

O.C.G.A. §§ 7-1-61; 7-1-602.

Original Rule entitled "Courier Services" adopted. F. July 7, 1988; eff. July 27, 1988. Amended: F. Sept. 26, 1995; eff. Oct. 16, 1995. Amended: F. July 12, 1999; eff. August 1, 1999. Amended: F. Aug. 15, 2007; eff. Sept. 4, 2007. Amended: New title "Messenger Services." F. Jan. 8, 2021; eff. Jan. 28, 2021.