Vanderbilt Law Review

First Page



This Recent Development contends that the Second Circuit's reversal of the lower court decision only temporarily preserves the regional and national interchange systems that have become increasingly popular in the last several years. Federal legislation is necessary to ensure the development of electronic banking technology and to reestablish competitive equality in the dual banking system. Part II traces the treatment of ATMs and shared ATM networks by state legislatures, the Office of the Comptroller of the Currency, and federal courts since the enactment of the McFadden Act. Part III discusses the Marine Midland Bank decision as the first case to call into question the validity of shared ATM networks. Part III also introduces the Banking Convenience Act of 1984, which is Congress' reaction to the district court decision in Marine Midland Bank. Part IV analyzes the effect that Marine Midland Bank will have on the future use of ATMs by national banks and encourages passage of a proposed amendment to the McFadden Act, which effectively codifies the Marine Midland Bank appellate decision. Part V concludes that Congress should act promptly, despite the Second Circuit's reversal of the Marine Midland Bank district court decision, to clarify the legal status of shared ATMs for national banks and to regain the competitive equality that Congress thought it achieved in 1927 with the National Bank Act.