Bank Offices—Definitions and Procedures for Non-Branch Offices

PURPOSE: This rule defines non-branch offices in a manner consistent with federal definitions, implements procedures regarding the establishment of non-branch offices, and provides parity for Missouri state-chartered banks with national banks regarding the establishment of branches and other types of banking facilities. (1) Definitions— (A) “Administrative office” means a bank facility to which the bank does not permit members of the public to have physical access for purposes of making deposits, paying checks, or borrowing money (such as an office established by the bank that receives deposits or loan payments only electronically or through the mail or involves staff engaged only in “back office” administrative work or loan approvals); (B) “Bank” means any bank or depository trust company chartered by Missouri or any other state; (C) “Branch,” for purposes of this rule— 1. “Branch” means any branch bank, branch office, branch agency, additional office, or any branch place of business established by a bank at which deposits are received or checks paid or money lent. A “branch” may include a temporary, seasonal, or mobile facility that meets these criteria; 2. “Branch” does not include— A. A loan production office; B. A deposit production office; C. An automated teller machine, an interactive video terminal, remote capture terminal or remote service unit, including but not limited to an automated loan machine, a personal computer, mobile device or similar device used in providing financial services, or a drop box for deposit and payment purposes; D. An administrative office; AND INSURANCE E. A facility that is located at the site of, or is an extension of, an approved main office or branch; or F. Any other office that does not engage in any of the activities in paragraph (1)(C)1. of this rule, including any office combining any of the activities or facilities permitted in the exemptions listed in subparagraphs (1)(C)2.A. through D.; (D) “Deposit production office” means a bank office at which deposit-related functions are conducted, but at which deposits are not received, checks are not paid, nor money lent; (E) “Deposit-related functions” means including assembling and providing information about deposit products and services, soliciting and processing deposit account applications, approving or denying deposit account applications, and conducting deposit account set-up activities, such as execution of documents, but not including “receipt of deposits”; (F) “Deposits are received” or “receipt of deposits” includes the bank accepting funds to be deposited from the depositor, in-person; (G) “Loan production office” means a bank office at which loan-related functions are conducted, but at which deposits are not received, checks are not paid, nor money lent; (H) “Loan-related functions” includes assembling and providing information about loan products and services, soliciting and processing loan applications, approving or denying loan applications, and conducting loan closing activities, such as execution of documents but not including “money lent”; (I) “Money lent” means disbursing to the borrower, in-person, loan proceeds directly from bank funds— 1. From the lending bank or its subsidiary; or 2. At a facility that is established by the lending bank or its subsidiary; (J) “Non-branch banking facility” means any item described in paragraph (1)(C)2. of this rule; and (K) “Trust office” means an office of a bank or trust company chartered in Missouri, other than a main office or a branch, at which the bank or trust company engages in one (1) or more fiduciary activities requiring trust powers and/or activities incidental to the exercise of such trust powers, but at which deposits are not received, checks are not paid, nor money lent. (2) Loan Production, Deposit Production, and Combination Offices. Any bank may establish one (1) or more in-state or outof-state loan production, deposit production or non-branch banking facilities described in subparagraph (1)(C)2.F. of this rule that involve any combination of “loan-related functions” and “deposit-related functions” subject to the requirements of the host state, if any; and provided that, within thirty (30) days after establishing any such office, such bank shall file a written notice with the Division of Finance stating the name of the bank, the location of the office, and the activities to be conducted at the office. Notwithstanding anything contrary to the foregoing, if the purchase or lease of real property or improvements needed to establish any office authorized by this rule exceeds the legal loan limit or is from an officer, director, employee, affiliate, principal shareholder, or a related interest of such person, prior written approval shall be obtained from the commissioner of finance. (3) Other Non-branch Banking Facilities. Any bank may establish one (1) or more in-state or out-of-state administrative offices or one (1) or more of the types of non-branch banking facilities described in subparagraph (1)(C)2.C. or (1)(C)2.E. of this rule, and such establishment does not require notice to the Division of Finance. (4) Establishment of Trust Offices. (A) A Missouri-chartered bank granted fiduciary powers pursuant to section 362.115, RSMo, and trust company, may establish one (1) or more in-state or out-of-state trust offices on the same conditions as set forth in section (2) subject to the requirements of the host state, if any. (B) Banks and trust companies chartered by jurisdictions other than Missouri must comply with section 362.600, RSMo, to establish any trust office in this state. (5) Remote Work. Nothing in this rule shall apply to the personal residences of bank officers, employees, or agents, who may be conducting bank business remotely at home, provided that bank customers are not permitted physical access to the residence for purposes of conducting business with the bank. AUTHORITY: section 361.105, RSMo 2016, and section 362.105, RSMo Supp. 2023.* Moved to 20 CSR 1140-6.075, effective Aug. 28, 2006. This rule originally filed as 4 CSR 140-6.075. Original rule filed June 12, 1984, effective Nov. 15, 1984. Amended: Filed Aug. 7, 1992, effective Feb. 26, 1993. Moved to 20 CSR 1140-6.075, effective Aug. 28, 2006. Amended: Filed Oct. 11, 2023, effective May 30, 2024. *Original authority: 361.105, RSMo 1967, amended 1993, 1994, 1995, 2011, and 362.105, RSMo 1939, amended 1949, 1963, 1965, 1967, 1977, 1983, 1986, 1990, 1991, 1992, 1995, 2000, 2001, 2003, 2010, 2011, 2017.