Regulatory Alerts2014-06-11
Policy Statement No. 90-1; Courier Services
The Idaho Department of Finance issued Policy Statement No. 90-1 to clarify that state-chartered banks may operate customer courier services for the pickup and delivery of unverified funds. The statement defines these services as distinct from branch banking, noting that receipts issued are for package acceptance rather than deposit confirmation. This determination resolves inquiries regarding the permissibility of such operations under Idaho banking regulations.
CECIL D. ANDRUS
GOVERNOR
GREAT SEAL OF
THE STATE OF IDAHO
BELTON J. PATTY
DIRECTOR
STATE OF IDAHO
DEPARTMENT of FINANCE
BOISE, IDAHO 83720
(208) 334-3313
April 6, 1990
TO ALL INTERESTED PARTIES:
POLICY STATEMENT NO. 90-1
Several Idaho state-chartered banks have asked for this Department's determination as to whether a bank operated customer courier service is permissible in the state of Idaho. This Policy Statement sets forth the Department's position that such a courier service is permitted.
For purposes of this Policy Statement, a "courier service" is a service whereby a bank sends a courier to pickup or deliver funds to a customer at his place of business. "Funds" are here understood to mean a sum of legal tender and/or negotiable instruments as yet unverified and/or unauthenticated by the bank. Any receipt issued at this point is for the package accepted for delivery to the bank, not acceptance of a deposit.
The primary issue raised by this question is whether or not such a service constitutes branch banking. A branch is defined in Idaho Code § 26-106(6) as:
any location except a bank facility or customer-bank and customer-bank communication terminal or bank service corporation at which a branch is defined in Idaho equal to a day of policy
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