A proprietary ATM is an automated teller machine that is either located at or near a bank branch of the institution that owns it. This type of ATM is specifically operated by or for the bank, ensuring that it is exclusively available for the bank's customers. The term highlights the relationship between the ATM and the bank, emphasizing ownership and operational control.
Proprietary ATMs are primarily relevant in the banking and finance sectors. They are governed by federal regulations that outline their operation and placement. Legal considerations may include compliance with banking laws, consumer protection regulations, and accessibility requirements. Users can often manage related forms and procedures through platforms like US Legal Forms, which provide templates for financial agreements and disclosures.
Here are a couple of examples of abatement:
Example 1: A local bank installs an ATM in its parking lot, allowing customers easy access to cash without entering the branch. This ATM is considered proprietary because it is owned by the bank.
Example 2: A bank operates an ATM in a nearby shopping plaza, within a defined distance from its main branch. This setup qualifies as a proprietary ATM under federal regulations.
The definition of proprietary ATM is outlined in 12 USCS § 4001 (16) under the Expedited Funds Availability Act. This statute provides the framework for understanding the operation and regulation of ATMs in relation to banking institutions.
| Term | Definition | Key Differences |
|---|---|---|
| Proprietary ATM | An ATM owned or operated by a specific bank. | Exclusively serves the bank's customers. |
| Shared ATM | An ATM that is part of a network and accessible to multiple banks. | Available to customers of different banks, not exclusive. |
If you encounter a proprietary ATM, ensure you understand any fees or limitations on usage. If you are a bank considering installing a proprietary ATM, consult with legal professionals to ensure compliance with regulations. For assistance, you can explore US Legal Forms for templates related to ATM operation agreements.
