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| ## Comptroller of the Currency                                        |
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| > Administrator of National Banks                                     |
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Central District Office

One Financial Place, Suite 2700

440 South LaSalle Street

Chicago, Illinois 60605

#### Corporate Decision #2002-3

January 16, 2002 **February 2002**

Mr. Douglas M. Kratz, Chairman

National Bancshares, Inc.

P.O. Box 1030

Bettendorf, Iowa 52722-0018

Subject: THE National Bank, Bettendorf, Iowa

> Iowa Messenger Service Branch
>
> OCC Control Number 2001-CE-05-160

Dear Mr. Kratz:

This is to inform you that on January 11, 2001 the Comptroller of the
Currency (OCC) approved your proposal to establish a messenger service
branch. It is understood that the messenger service branch will operate
in the state of Iowa, Scott County, in the following contiguous
municipal corporations:

> \- Bettendorf
>
> \- Davenport
>
> \- Eldridge

A national bank's ability to branch, including operation of a messenger
service branch, is subject to review and approval under federal
branching law, which provides among other things that a national bank
may branch "at any point within the State in which said association is
situated, if such establishment and operation are at the time authorized
to state banks." 12 U.S.C. § 36(c)(2). Thus, in determining whether THE
National Bank is authorized to establish a messenger service branch, the
OCC looked to state law to determine whether and where state banks may
branch.

Under Iowa branching statutes, state banks are authorized to "establish
any number of bank offices within the municipal corporation or urban
complex in which the principal place of business of the bank is
located." Iowa Code § 524.1202.2.a. An "urban complex" is defined as
"the geographic area bounded by the corporate limits of two or more
municipal corporations, each of which being contiguous to or cornering
upon at least one of the other municipal corporations within the
complex." Iowa Code § 524.1202.2.b. Thus, Iowa state banks may branch
without numerical limitations within an "urban complex."

Iowa branching statutes are silent as to whether or not mobile
facilities are permissible. In cases where state branching laws are
silent on the issue of mobile facilities, but otherwise permit unlimited
branching in a geographic area, the OCC has found that the establishment
of a mobile branch is permissible. *See* Decision of the Comptroller of
the Currency on the Application of First National Bank of Jackson,
Jackson, Tennessee, to Establish a Branch in Madison County, Tennessee
(April 13, 1990).

Consequently, it is clear that the proposed messenger service branch is
permissible within the geographic area described in the Application.
Bettendorf, Davenport and Eldridge constitute an "urban complex" as that
term is defined in Iowa statutes. Since state banks may establish an
unlimited number of branches within an "urban complex," and since state
law is silent on whether mobile branches are permissible, OCC precedent
supports the conclusion that a national bank with its principal place of
business in Bettendorf, Iowa may establish a messenger service in the
Bettendorf-Davenport-Eldridge urban complex.[^1]

This branch approval is subject to the following requirements:

-   The operation of the messenger service is limited to those locations
    where the bank could legally establish a permanent branch under
    applicable federal and state law and within the geographic areas
    where notice of the proposed messenger service was published.

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-   After the messenger service begins operations, the bank must
    maintain a log of operations, indicating the date, specific
    location, and a description of each stop (e.g., office, store,
    residence, etc.).

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-   At all times, the messenger service must be maintained and operated
    in compliance with the relevant provisions of 12 CFR 21 and the Bank
    Protection Act of 1968.

If you desire to operate the messenger service outside the geographic
area where notice was published, please contact the appropriate district
office for additional information.

The bank must advise the appropriate district office in writing in
advance of the desired opening date, so the OCC may issue the necessary
authorization letter. If the branch is not opened within 18 months from
this date, the approval will automatically terminate, unless the OCC
grants an extension.

This approval is granted based on a thorough review of all information
available, including representations and commitments made in the
application and by the bank's representatives.

This approval, and activities and communications by OCC employees in
connection with the filing, do not constitute a contract, express or
implied, or any other obligation binding the OCC, the U.S., any agency
or entity of the U.S., or an officer or employee of the U.S., and do not
affect the ability of the OCC to exercise its supervisory, regulatory
and examination authorities under applicable law and regulations. The
foregoing may not be waived or modified by any employee or agent of the
OCC or the U.S.

If you have any questions regarding this letter, please contact Daniel
Walters at (312) 360-8872.

Sincerely,

**/s/**

David J. Rogers

National Bank Examiner

Central District

[^1]: Further, we note that the Iowa Banking Division has application
    materials available for state banks proposing to establish mobile
    banking offices including courier service branches. Clearly,
    therefore, Iowa state banks are authorized to establish messenger
    service branches under Iowa banking laws.