82-1

September 15, 1982

 Re: Lock Box Service

Dear Mr. ________:

This is in response to your letter of September 1, 1982 inquiring whether ________, a depositary agency, may provide lock box service for certain persons who maintain accounts with Canadian branches of your bank.

Our understanding of the proposed service is as follows. The service would only be provided for local (California) offices of Canadian companies who maintain deposit accounts with ________ branches in Canada. Collection of local accounts receivable for these companies would be mailed to the lock box here. Your San Francisco office will process the items and wire the proceeds to the Canadian accounts. Supporting documentation and copies of the items will be furnished to the companies.

Based upon the above understanding, our conclusion would be that such transactions fall within an agency’s power to conduct a commercial banking business as authorized by Financial Code Sections 1755 (a) and 1755 (a)(2).

Very truly yours,

RICHARD M. DOMINGUEZ
Superintendent of Banks

By

JOHN R. PAULUS
Deputy Superintendent
Office of Policy

JRP:lal

September 1, 1982

Attention: Mr. John Paulus

Dear Sir:

Re: Lock Box Service

Further to our telephone conversation today, we request information regarding the implementation of Lock Box Service at this office.

The proposed service would be provided to local clients of ________ who operate accounts with our branches in Canada. We would pick up checks for deposit from our Lock Box, transfer by wire the proceeds of the deposits and subsequently mail supporting documentation and photostatic copies of the checks in question.

We require your confirmation that we may provide this service under our license as a depositary agency.

Thank you for your assistance in this regard. If you require further information, please do not hesitate to contact us.

Yours truly,