H.B. 5

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AUTOMATED TELLER MACHINE AMENDMENTS
2 1997 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Fred R. Hunsaker
5 AN ACT RELATING TO FINANCIAL INSTITUTIONS; AMENDING DEFINITIONS; AND
6 MAKING TECHNICAL CORRECTIONS.
7 This act affects sections of Utah Code Annotated 1953 as follows:
8 AMENDS:
9 7-16-2, as last amended by Chapter 244, Laws of Utah 1985
10 Be it enacted by the Legislature of the state of Utah:
11 Section 1. Section 7-16-2 is amended to read:
12 7-16-2. Definitions.
13 As used in this chapter:
14 (1) "Automated teller machine" means an [unmanned, free-standing] electronic
15 information processing device[, located separate and apart from a financial institution's principal
16 office, branch, or detached facility, which uses either the direct transmission of electronic impulses
17 to a financial institution or the recording of electronic impulses or other indicia of a transaction for
18 delayed transmission to a financial institution in order to perform financial transactions] that:
19 (a) is readily accessible to the general public; and
20 (b) on behalf of an issuer:
21 (i) dispenses currency or coin; or
22 (ii) accepts deposits or payments.
23 [(4)] (2) (a) "Consumer funds transfer facility" means [either]:
24 (i) an automated teller machine[,]; or
25 (ii) a point-of-sale terminal, including any supporting equipment, structures, or systems.
26 (b) A point-of-sale terminal owned or operated by and on the premises of a person
27 primarily engaged in the business of selling or leasing goods or non-financial services and capable

1 of performing the functions of a consumer funds transfer facility, is not [considered to be] a
2 consumer funds transfer facility unless connected on-line or off-line to a financial institution for
3 the purpose of performing financial transactions.
4 [(6)] (3) "Control" means ownership, directly or indirectly, of a majority of the outstanding
5 shares or more than 50% of the shares voted for the election of directors at the preceding election.
6 (4) "Device for access" means a card, code, or other means of access to a customer's
7 account, or any combination of these, that is used to deposit or withdraw cash through an
8 automated teller machine. "Device for access" includes an access device as defined in Federal
9 Reserve Board Regulation E, 12 C.F.R. Part 205, 1995, adopted under the Electronic Fund
10 Transfer Act, 15 U.S.C. 1601 et seq.
11 [(3)] (5) "Financial transaction" means:
12 (a) cash withdrawals[,];
13 (b) deposits[,];
14 (c) account transfers[,];
15 (d) payments from deposit, loan, or thrift accounts[,];
16 (e) disbursements under a preauthorized credit agreement[, or];
17 (f) loan payments [and]; or
18 (g) other similar transactions initiated by an account holder.
19 (6) "Issuer" means:
20 (a) a depository institution authorized to do business in this state that issues a device for
21 access; or
22 (b) a state or federal government agency that issues a device for access that allows a person
23 to receive benefits from or through the state or federal governmental agency.
24 [(5)] (7) "Merchant" means a person primarily engaged in the retail sale or lease of goods
25 or non-financial services.
26 [(2)] (8) (a) "Point-of-sale terminal" means [a manned] an electronic information
27 processing device[, other than a telephone, located at the point of sale and separate and apart from
28 a financial institution's principal office, branch, or detached facility, which uses either the direct
29 transmission of electronic impulses to a financial institution or the recording of electronic impulses
30 or other indicia of a transaction for delayed transmission to a financial institution in order to
31 perform financial transactions. However, point-of-sale terminals includes electronic information

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1 processing devices which interface with the telephone transmission system and which, either
2 through the direct transmission of electronic impulses or the recording and delayed transmission
3 of electronic impulses to a financial institution, perform financial transactions. Nothing in this
4 definition prevents a device which constitutes a point-of-sale terminal from being used to perform,
5 for its operator, any internal business functions that are not financial transactions.] located at the
6 point of sale that is controlled by or used by the merchant or other provider of goods or services
7 that:
8 (a) authorizes a debit or credit in payment for goods or services to a customer's account
9 at:
10 (i) a depository institution; or
11 (ii) a state or federal governmental agency; or
12 (b) authorizes the merchant or other provider of goods or services to dispense currency or
13 coin to a customer who uses a device for access issued by a state or federal governmental agency.




Legislative Review Note
as of 10-31-96 9:06 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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