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Can you summarize UTCO Title 7, Chapter 16a?
Financial Institutions Act > Automated Teller Machine Act
Short Summary
The provided legal document content covers three main areas. Firstly, it outlines the notification requirements for operators of automated teller machines (ATMs) in Utah. Operators must provide notice to the department before operating, relocating, or discontinuing the operation of an ATM. Failure to provide the required notice may result in enforcement actions by the commissioner. However, this requirement does not apply to ATMs located at the main office or a branch of a depository institution authorized to do business in Utah. Secondly, the document pertains to the contractual waiver of provisions in the Uniform Commercial Code (Title 70A). It allows depository institutions, switching facilities, and clearinghouses to vary the requirements of the Uniform Commercial Code if it is inconsistent with the operation of an automated teller machine or a point-of-sale terminal. However, the contractual agreement cannot disclaim responsibility for lack of good faith or failure to exercise ordinary care. The commissioner has the authority to require rescission or modification of any provision permitted by the contractual agreement if it relates to the rights and obligations of account holders, merchants, merchant customers, or others using or having access to automated teller machines or point-of-sale terminals, and if the provision is found to be unconscionable or contrary to the public interest. Lastly, the document governs the powers of depository institutions operating ATMs regarding fees or surcharges. Operators are allowed to make ATMs available for use by customers of one or more issuers and connect them with electronic consumer funds transfer systems. They can impose transaction fees, but these fees must be disclosed to users in a manner that allows them to cancel the transaction without incurring the fee. Various entities involved in ATM transactions, such as depository institutions, owners, operators, issuers, and electronic consumer funds transfer systems, are permitted to charge transaction fees to customers. The document also clarifies that agreements to operate or share ATMs cannot prohibit charging customers for using an account from an institution providing financial services located outside the United States, as long as it is not prohibited by state or federal law. However, it does not restrict the ability of these entities to voluntarily participate in a surcharge-free network.
Whom does it apply to?
Operators of ATMs, depository institutions, switching facilities, clearinghouses, account holders, merchants, merchant customers, and others using or having access to ATMs or point-of-sale terminals
What does it govern?
Notification requirements for operators of automated teller machines (ATMs), contractual waiver of provisions in the Uniform Commercial Code, powers of depository institutions operating ATMs regarding fees or surcharges
What are exemptions?
ATMs located at the main office or a branch of a depository institution authorized to do business in Utah
What are the Penalties?
Enforcement actions by the commissioner for failure to provide required notice
Jurisdiction
Utah