§ 7.1004 - Establishment of a loan production office by a national bank.

§ 7.1004 Loans originating at facilities other than banking offices Establishment of a loan production office by a national bank.

Cross Reference

Link to an amendment published at 85 FR 83727, Dec. 22, 2020.

(a) GeneralIn general. A national bank may use the services of, and compensate persons not employed by, the bank for originating loans.

(b) Approval. An employee

or

agent of a national bank or of

its operating subsidiary may

originate a

engage in loan production activities at a site other than the main office or a branch

office

of the bank.

This action does not violate

A national bank or its operating subsidiary may solicit loan customers, market loan products, assist persons in completing application forms and related documents to obtain a loan, originate and approve loans, make credit decisions regarding a loan application, and offer other lending-related services such as loan information and applications at a loan production office without violating 12 U.S.C. 36 and 12 U.S.C. 81

if the loan is approved and made at the main office or a branch office of the bank or at an office of the operating subsidiary located on the premises of, or contiguous to, the main office or branch office of the bank.

, provided that “money” is not deemed to be “lent” at that site within the meaning of § 7.1003 and the site does not accept deposits or pay withdrawals.

(b) Services of other persons. A national bank may use the services of, and compensate, persons not employed by the bank in its loan production activities.

[85 FR 83727, Dec. 22, 2020]