---
kind: "section"
citation: "12 C.F.R. § 7.1003"
title: "12"
number: "7.1003"
heading: "Money lent by a national bank at banking offices or at facilities other than banking offices."
url: "https://uscodex.org/cfr/12/7.1003"
---

# §7.1003. Money lent by a national bank at banking offices or at facilities other than banking offices.

- (a) **In general.** For purposes of what constitutes a branch within the meaning of 12 U.S.C. [36(j)](/usc/12/36.md?p=j) and [12](/usc/12/12.md) CFR 5.30, “money” is deemed to be “lent” only at the place, if any, where the borrower in-person receives loan proceeds directly from national bank funds:
  - (1) From the lending national bank or its operating subsidiary; or
  - (2) **At a facility that is established by the lending national bank or its operating subsidiary.**
- (b) **Receipt of national bank funds representing loan proceeds.** Loan proceeds directly from national bank funds may be received by a borrower in person at a place that is not the national bank's main office and is not licensed as a branch without violating 12 U.S.C. [36](/usc/12/36.md), [12](/usc/12/12.md) U.S.C. 81 and [12 CFR 5.30](/cfr/12/5.30.md), provided that a third party is used to deliver the funds and the place is not established by the lending national bank or its operating subsidiary. A third party includes a person who satisfies the requirements of [§ 7.1012(c)(2)](/cfr/12/7.1012.md?p=c-2), or one who customarily delivers loan proceeds directly from national bank funds under accepted industry practice, such as an attorney or escrow agent at a real estate closing.
- (c) **Services on equivalent terms to those offered customers of unrelated banks.** An operating subsidiary owned by a national bank may distribute loan proceeds from its own funds or bank funds directly to the borrower in person at offices the operating subsidiary has established without violating 12 U.S.C. [36](/usc/12/36.md), [12](/usc/12/12.md) U.S.C. 81 and [12 CFR 5.30](/cfr/12/5.30.md) provided that the operating subsidiary provides similar services on substantially similar terms and conditions to customers of unaffiliated entities including unaffiliated banks.

## Notes

### Amendments

[61 FR 4862, Feb. 9, 1996, as amended at 85 FR 83727, Dec. 22, 2020]

### Authority

Authority: 12 U.S.C. 1 et seq., 25b, 29, 71, 71a, 92, 92a, 93, 93a, 95(b)(1), 371, 371d, 481, 484, 1462a, 1463, 1464, 1465, 1818, 1828, 3102(b), and 5412(b)(2)(B).

### Source

Source: 61 FR 4862, Feb. 9, 1996, unless otherwise noted.

### Amendments

[61 FR 4862, Feb. 9, 1996, as amended at 85 FR 83727, Dec. 22, 2020]