(a) A branch is a bona fide office, as defined in section 16-2.8 of this Subpart, which is used by the taxpayer on a regular and systematic basis to:

1. (1) approve loans (regardless of whether the approval of certain classes of loans, such as loans over a set dollar amount, requires review for final approval or final approval by another office of the taxpayer);
2. (2) accept loan repayments;
3. (3) disburse funds; and

4. (4) conduct one or more of the other functions of a banking business, such as:

   1. (i) paying withdrawals;
   2. (ii) cashing checks, drafts and other similar items;
   3. (iii) accepting deposits;
   4. (iv) issuing cashier's checks, treasurer's checks, money orders or other similar items;
   5. (v) buying, selling, paying or collecting bills of exchange;
   6. (vi) issuing letters of credit;
   7. (vii) receiving money for transmission or transmitting the same by draft, check, cable or otherwise; or
   8. (viii) exercising fiduciary powers.

(b) The following do not constitute a branch:

1. (1) a loan production office;
2. (2) a representative office;
3. (3) a public accommodation office;
4. (4) an automated teller machine or point-of-sale terminal;
5. (5) a bona fide office, all of whose loans, pursuant to the taxpayer's business policies or practices, require on a regular and systematic basis review for final approval or final approval by another office or all of whose loans in fact receive on a regular and systematic basis review for final approval or final approval by another office;
6. (6) an office or any other facility of an agent or correspondent of the taxpayer; or
7. (7) any combination of the foregoing.

(c) For purposes of this section, approval shall mean final approval and final approval shall have the same meaning as set forth in paragraph (d)(4) of section 19-6.2 of this Title.

(d) Example.

In 1982, a New York office of a German bank was established. The New York office does not have authority to give final approval to loans over $50 million. Prior to 1985 and in 1986, the New York office was involved with loans of less than $50 million as well as loans in excess of $50 million and gave final approval to those loans of less than $50 million. In 1985, the New York office did not give final approval to any loans since it was only involved with loans in excess of $50 million. The New York office has accepted loan repayments, disbursed funds and conducted one or more of the other functions of a banking business since it was established. The New York office is a branch because it has been used on a regular and systematic basis to conduct all the functions required to qualify as a branch even though it did not approve any loans in 1985.