---
kind: "section"
citation: "12 C.F.R. § 7.1004"
title: "12"
number: "7.1004"
heading: "Establishment of a loan production office by a national bank."
url: "https://uscodex.org/cfr/12/7.1004"
---

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

- (a) **In general.** A national bank or its operating subsidiary may engage in loan production activities at a site other than the main office or a branch of the bank. 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](/usc/12/36.md) and [12](/usc/12/12.md) U.S.C. 81, provided that “money” is not deemed to be “lent” at that site within the meaning of [§ 7.1003](/cfr/12/7.1003.md) 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.

## Notes

### Amendments

[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

[85 FR 83727, Dec. 22, 2020]