Operating Unmanned Teller Machines in Texas

Texas voters approved an amendment to the Texas Constitution that added a new part (b) to article XVI, section 16. Section 16(b) authorizes the legislature to enact legislation permitting banks to participate in Electronic Funds Transfer (EFT) systems by making unmanned teller machines (UTM's) available to the consumer public. The legislature's enactment of article 342-903a provides banks with the authorization necessary to provide UTM services to the public. The question now, is what advice to give to banking clients regarding their use of UTM's. To that end, this article discusses several issues raised by the amendment to section 16 and the passage of article 342-903a. The author asserts that such issues can be resolved by staying abreast of current Electronic Funds Transfer developments and carefully drafting all written agreements.