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Upon startup, mail reads the contents of the two command files: the system-wide configuration file, and the user's configuration file. Each line read from these files is processed like a usual mail command.
When run with --norc (-N) option, mail does not read the contents of system-wide configuration file. The user's file, if it exists, is always processed.
The user's configuration file is located in the user's home directory and is named .mailrc. The location and name of the system-wide configuration file is determined when configuring the package via --with-mail-rc option. It defaults to sysconfdir/mail.rc.