Regulatory Alerts1998-02-01
Regulation No. 16 - Electronic Fund Transfer System
The Alabama Superintendent of Banks promulgates Regulation No. 16 to permit state and federally chartered financial institutions to establish remote service units, such as ATMs, across state lines while maintaining reciprocity with other jurisdictions. The regulation establishes notification procedures, defines permitted activities like cash withdrawals and fund transfers, and sets operational standards for security, liability, and customer privacy. It aims to remove legal barriers to electronic fund transfer systems while ensuring prudent safeguards against unwise ventures and public injury.
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