Virginia lawmakers seek to prevent CUs’ use of ATM as service facility
Both bills “to amend and reenact § 6.2-1326 of the Code of Virginia, relating to credit unions; service facilities” use the same language, as follows:
§ 6.2-1326. Establishing, moving, and closing offices.
A. As used in this section, “service facility” means a physical facility at a location other than its main office that is wholly owned by the credit union establishing it. “Service facility” does not include any automated teller machine, cash-dispensing machine, or similar electronic or computer terminal, regardless of whether it (i) is located on credit union premises or premises properly considered part of an authorized office of the credit union or (ii) receives or records deposits or disburses loan proceeds.
As worded, the legislation would appear to run counter to a decision by the NCUA in August 2012 that a video teller device may serve as a service facility under certain circumstances, one of these being that the VTM:
Allows a member to conduct all the transactions he/she could if visiting a service facility of another sort permitted by the FCU Act and Chartering Manual …
The bills have been referred to the assembly’s Committee on Commerce and Labor for consideration.