On January 29, 1976, Attorney General Frank Kelley issued Opinion No. 4926 in response to the question of whether a bank may extend its banking activities to structures apart (generally a distance of not more than two blocks) from the premises of an authorized bank office without having the additional structure approved as a branch.

Attorney General Kelley concludes:

"that a bank may construct an extension facility without having the additional structure licensed as a branch unless the extension allows the bank to serve a new geographical area or to acquire a material advantage over its competitors."

In making our determination we will consider certain relevant data. This includes such data as (1) type of facility and its proposed use, (2) the distance separating the facility from the existing bank office, (3) the number of intervening structures and physical barriers, (4) the existence of any physical connection, such as by pneumatic tubes, between the facility and the existing bank office, (5) the possible material advantage of the balance of competition between competing banks, and (6) the geographical area to be served by the proposed facility. In making the determination, no single factor will be controlling; nor do any hard and fast rules concerning such factors as distance of separation control. The determination will be made after considering all the relevant factors and circumstances peculiar to the case.

It should be noted that the Bureau does not interpret the Attorney General's opinion to include off-premise EFTS facilities as a permissible office extension.

A copy of Attorney General Opinion No. 4926 will be provided upon written request.

Signed:	Richard J. Francis, Commissioner
Dated:	March 31, 1976