Foreign Association Remote Service Units

PURPOSE: This regulation establishes the criteria for the operation of remote service units in this state by foreign associations. (1) Authority to Operate a Remote Service Unit. (A) Foreign Associations. Upon obtaining the prior written approval of the director, a foreign association may operate a remote service unit in this state under the following terms and conditions: 1. A foreign association shall submit a written application to the director for initial authority to operate a remote service unit in this state, providing the following information: A. Written documentation indicating that the applicant has received authority from its state or federal regulatory agency to operate a remote service unit in the state of Missouri; and B. A description of the remote service unit system which the applicant is operating in its home state at the time of the application including the location of each terminal, the functions performed at each location, the names and addresses of other entities participating in the system and such other information as the director may require. (B) No foreign association shall operate a remote service unit in this state unless its home state shall allow associations chartered by the state of Missouri to operate remote service units in its state. (C) A foreign association authorized by the director to operate a remote service unit in this state may render the same financial services, but none other, to its customers by means of a remote service unit as are permitted for associations chartered by the state of Missouri; provided, however, no foreign association shall render any financial service in this state by means of a remote service unit unless its home state shall allow associations chartered by the state of Missouri to render the same financial services in its state. (D) Remote service units operated in this state by a foreign association pursuant to this regulation shall not be considered to be branch offices or agencies. (2) Revocation of Right to Operate Remote Service Units in this State. (A) Action Taken by Director. In addition to the other sanctions available, if, in the opinion of the director, a foreign association is unlawfully or unsoundly exercising, or has unlawfully or unsoundly exercised, the powers granted by this regulation or otherwise fails or has failed to comply with the requirements of this regulation, the director may issue and serve upon the foreign association a notice of intent to revoke the authority of the foreign association to exercise the powers granted by this regulation. The notice shall contain a statement of the facts constituting the alleged unlawful or unsound exercise of powers or failure to comply and shall fix a time and place at which a hearing will be held to determine whether an order revoking authority to exercise such powers should be issued against the foreign association. Such hearing shall be conducted in accordance with the provisions of 4 CSR 260-6.010 and shall be fixed for a date not earlier than thirty (30) days and not later than sixty (60) days after service of such notice unless an earlier or later date is set by the director at the request of the foreign association so served. The director may assess costs in connection with such a hearing. Unless the foreign association so served shall appear at the hearing by a duly authorized representative, it shall be deemed to have consented to the issuance of the revocation order. ln the event of such consent or if, upon the record made at any such hearing, the director shall find that any allegation specified in the notice of charges has been established, the director may issue and serve upon the foreign association an order revoking authority to exercise any and all powers granted by this regulation. Upon the effective date of any such revocation order, all the rights and privileges of such foreign association to operate a remote service unit in this state shall forthwith cease and terminate. A revocation order shall become effective not earlier than the expiration of thirty (30) days after service of such order upon the foreign association so served (except in the case of a revocation order issued upon consent, which shall become effective at the time specified), and shall remain effective and enforceable, except to such extent as it is stayed, modified, terminated or set aside by action of the director or the State Savings and Loan Commission or reviewing court. (B) Automated Termination, The authority grants to a foreign association pursuant to this regulation to operate a remote service unit in Missouri shall immediately cease and terminate at such time as the equal rights required by 4 CSR 260-13.020(1) for associations chartered by the state of Missouri shall cease to exist in the state of the foreign association. AUTHORITY: sections 369.144, 369.219, 369.299 and 369.334, RSMo 1994.* This rule originally filed as 4 CSR 260-13.020. This rule previously filed as 4 CSR 14025.020. Original rule filed July 14, 1978, effective Nov. 13, 1978. Amended: Filed Oct. 13, 1981, effective Jan. 14, 1982. Rescinded and readopted: Filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 14025.020, effective July 6, 1994. Moved to 20 CSR 1140-25.020, effective Aug. 28, 2006. *Original authority: 369.144, RSMo 1971, amended 1982, 1983, 1984, 1989, 1994; 369.219 and 369.334, RSMo 1971, amended 1983, 1994; and 369.299, RSMo 1971, amended 1994.