ALEXANDRIA, Va. — Federal credit unions can't make contracts for ATMs with third-party providers if the arrangement doesn't give the credit union an ownership or leasehold interest in the ATM.
That was the opinion of Associate General Counsel Sheila A. Albin, in a letter to Dallas lawyer Sharon Sjostrom, who was representing an unidentified federal credit union.
Albin noted that because the third party is not a credit union member, the credit union could not provide cash for the ATM. "The FCU would be providing a financial service to a nonmember for a fee and this is impermissible," she wrote.
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