-CITE-
    12 USC CHAPTER 18 - BANK SERVICE COMPANIES                  01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 18 - BANK SERVICE COMPANIES

-HEAD-
                    CHAPTER 18 - BANK SERVICE COMPANIES                

-MISC1-
    Sec.                                                     
    1861.       Short title and definitions.                          
    1862.       Amount of investment in bank service company.         
    1863.       Permissible bank service company activities for
                 depository institutions.                             
    1864.       Permissible bank service company activities for other
                 persons.                                             
    1865.       Prior approval for investments in bank service
                 companies.                                           
    1866.       Services to nonstockholders or nonmembers.            
    1867.       Regulation and examination of bank service companies. 

-End-



-CITE-
    12 USC Sec. 1861                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 18 - BANK SERVICE COMPANIES

-HEAD-
    Sec. 1861. Short title and definitions

-STATUTE-
    (a) Short title
      This chapter may be cited as the "Bank Service Company Act".
    (b) Definitions
      For the purpose of this chapter - 
        (1) the term "appropriate Federal banking agency" shall have
      the meaning provided in section 1813(q) of this title;
        (2) the term "bank service company" means - 
          (A) any corporation - 
            (i) which is organized to perform services authorized by
          this chapter; and
            (ii) all of the capital stock of which is owned by 1 or
          more insured depository institutions; and

          (B) any limited liability company - 
            (i) which is organized to perform services authorized by
          this chapter; and
            (ii) all of the members of which are 1 or more insured
          depository institutions.

        (3) the term "Board" means the Board of Governors of the
      Federal Reserve System;
        (4) the term "depository institution" means, except when such
      term appears in connection with the term "insured depository
      institution", an insured bank, financial institution subject to
      examination by the Director of the Office of Thrift Supervision
      or the National Credit Union Administration Board, or a financial
      institution the accounts or deposits of which are insured or
      guaranteed under State law and are eligible to be insured by the
      Federal Deposit Insurance Corporation, the Federal Savings and
      Loan Insurance Corporation, or the National Credit Union
      Administration Board;
        (5) Insured depository institution. - The term "insured
      depository institution" has the same meaning as in section
      1813(c) of this title;
        (6) the term "invest" includes any advance of funds to a bank
      service company, whether by the purchase of stock, the making of
      a loan, or otherwise, except a payment for rent earned, goods
      sold and delivered, or services rendered prior to the making of
      such payment;
        (7) the term "limited liability company" means any company,
      partnership, trust, or similar business entity organized under
      the law of a State (as defined in section 1813 of this title)
      which provides that a member or manager of such company is not
      personally liable for a debt, obligation, or liability of the
      company solely by reason of being, or acting as, a member or
      manager of such company;
        (8) the term "principal investor" means the insured depository
      institution that has the largest dollar amount invested in the
      equity of a bank service company. In any case where two or more
      insured depository institutions have equal dollar amounts
      invested in a bank service company, the company shall, prior to
      commencing operations, select one of the insured depository
      institutions as its principal investor and shall notify the
      depository institution's appropriate Federal banking agency of
      that choice within 5 business days of its selection; and
        (9) the terms "State depository institution", "Federal
      depository institution", "State savings association" and "Federal
      savings association" have the same meanings as in section 1813 of
      this title.

-SOURCE-
    (Pub. L. 87-856, Sec. 1, Oct. 23, 1962, 76 Stat. 1132; Pub. L. 97-
    320, title VII, Sec. 709, Oct. 15, 1982, 96 Stat. 1540; Pub. L. 97-
    457, Sec. 32(a), Jan. 12, 1983, 96 Stat. 2511; Pub. L. 104-208,
    div. A, title II, Sec. 2613(a), (b), Sept. 30, 1996, 110 Stat. 3009-
    476; Pub. L. 109-351, title VI, Sec. 602(b)(1), Oct. 13, 2006, 120
    Stat. 1979.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b)(2)(A)(ii), (B)(ii). Pub. L. 109-351, Sec.
    602(b)(1)(F), substituted "insured depository institutions" for
    "insured banks".
      Subsec. (b)(4). Pub. L. 109-351, Sec. 602(b)(1)(A), inserted ",
    except when such term appears in connection with the term 'insured
    depository institution'," after "means" and substituted "Director
    of the Office of Thrift Supervision" for "Federal Home Loan Bank
    Board".
      Subsec. (b)(5). Pub. L. 109-351, Sec. 602(b)(1)(B), added par.
    (5) and struck out former par. (5) which defined "insured bank".
      Subsec. (b)(8). Pub. L. 109-351, Sec. 602(b)(1)(G), substituted
    "means the insured depository institution" for "means the insured
    bank", "insured depository institutions" for "insured banks" in two
    places, and "the depository institution's appropriate" for "the
    bank's appropriate".
      Subsec. (b)(9). Pub. L. 109-351, Sec. 602(b)(1)(C)-(E), added
    par. (9).
      1996 - Subsec. (a). Pub. L. 104-208, Sec. 2613(a), inserted
    heading and amended text of subsec. (a) generally. Prior to
    amendment, text read as follows: "This chapter may be cited as the
    'Bank Service Corporation Act'."
      Subsec. (b)(2). Pub. L. 104-208, Sec. 2613(b)(1), amended par.
    (2) generally. Prior to amendment, par. (2) read as follows: "the
    term 'bank service corporation' means a corporation organized to
    perform services authorized by this chapter, all of the capital
    stock of which is owned by one or more insured banks;".
      Subsec. (b)(6). Pub. L. 104-208, Sec. 2613(b)(2), substituted
    "company" for "corporation" and struck out "and" after semicolon at
    end.
      Subsec. (b)(7). Pub. L. 104-208, Sec. 2613(b)(3), added par. (7).
    Former par. (7) redesignated (8).
      Subsec. (b)(8). Pub. L. 104-208, Sec. 2613(b)(4), substituted
    "company" for "corporation" wherever appearing and "equity" for
    "capital stock".
      Pub. L. 104-208, Sec. 2613(b)(3), redesignated par. (7) as (8).
      1983 - Subsec. (b)(4). Pub. L. 97-457 substituted "a" for "or
    another" after "insured bank," and inserted reference to a
    financial institution insured by State law and eligible to be
    insured by certain Federal agencies.
      1982 - Subsec. (a). Pub. L. 97-320 substituted provision that
    this chapter may be cited as the "Bank Service Corporation Act" for
    provision that term "Federal supervisory agency" meant the
    Comptroller of the Currency, the Board of Governors of the Federal
    Reserve System, or the Board of Directors of the Federal Deposit
    Insurance Corporation.
      Subsec. (b). Pub. L. 97-320 substituted definitions of
    "appropriate Federal banking agency", "bank service corporation",
    "Board", "depository institution", "insured bank", "invest", and
    "principal investor" for provision that term "bank services" meant
    services such as check and deposit sorting and posting, computation
    and posting of interest and other credits and charges, preparation
    and mailing of checks, statements, notices, and similar items, or
    any other clerical, bookkeeping, accounting, statistical, or
    similar functions performed for a bank.
      Subsec. (c). Pub. L. 97-320 redesignated provisions of subsec.
    (c) defining "bank service corporation" as (b)(2), and revised
    definition.
      Subsec. (d). Pub. L. 97-320 redesignated provisions of subsec.
    (d) as (b)(6).


-TRANS-
                           TRANSFER OF FUNCTIONS                       
      Federal Savings and Loan Insurance Corporation abolished and
    functions transferred, see sections 401 to 406 of Pub. L. 101-73,
    set out as a note under section 1437 of this title.

-End-



-CITE-
    12 USC Sec. 1862                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 18 - BANK SERVICE COMPANIES

-HEAD-
    Sec. 1862. Amount of investment in bank service company

-STATUTE-
      Notwithstanding any limitation or prohibition otherwise imposed
    by any provision of law exclusively relating to banks or savings
    associations, other than the limitation on the amount of investment
    by a Federal savings association contained in section 1464(c)(4)(B)
    of this title, an insured depository institution may invest not
    more than 10 per centum of paid-in and unimpaired capital and
    unimpaired surplus in a bank service company. No insured depository
    institution shall invest more than 5 per centum of its total assets
    in bank service companies.

-SOURCE-
    (Pub. L. 87-856, Sec. 2, Oct. 23, 1962, 76 Stat. 1132; Pub. L. 97-
    320, title VII, Sec. 709, Oct. 15, 1982, 96 Stat. 1541; Pub. L.
    104-208, div. A, title II, Sec. 2613(c), Sept. 30, 1996, 110 Stat.
    3009-477; Pub. L. 109-351, title VI, Sec. 602(a), (b)(2), Oct. 13,
    2006, 120 Stat. 1978, 1979.)


-MISC1-
                                AMENDMENTS                            
      2006 - Pub. L. 109-351 inserted "or savings associations, other
    than the limitation on the amount of investment by a Federal
    savings association contained in section 1464(c)(4)(B) of this
    title" after "relating to banks" and substituted "insured
    depository institution" for "insured bank" in two places.
      1996 - Pub. L. 104-208 substituted "company" for "corporation" in
    section catchline and "company" and "companies" for "corporation"
    and "corporations", respectively, in text.
      1982 - Pub. L. 97-320 substituted provisions relating to the
    maximum permissible amount of investment in a bank service
    corporation by an insured bank for provisions which read as
    follows:
      "(a) No limitation or prohibition otherwise imposed by any
    provision of Federal law exclusively relating to banks shall
    prevent any two or more banks from investing not more than 10 per
    centum of the paid-in and unimpaired capital and unimpaired surplus
    of each of them in a bank service corporation.
      "(b) If stock in a bank service corporation has been held by two
    banks, and one of such banks ceases to utilize the services of the
    corporation and ceases to hold stock in it, and leaves the other as
    the sole stockholding bank, the corporation may nevertheless
    continue to function as such and the other bank may continue to
    hold stock in it."

-End-



-CITE-
    12 USC Sec. 1863                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 18 - BANK SERVICE COMPANIES

-HEAD-
    Sec. 1863. Permissible bank service company activities for
      depository institutions

-STATUTE-
      Without regard to the provisions of sections 1864 and 1865 of
    this title, an insured depository institution may invest in a bank
    service company that performs, and a bank service company may
    perform, the following services only for depository institutions:
    check and deposit sorting and posting, computation and posting of
    interest and other credits and charges, preparation and mailing of
    checks, statements, notices, and similar items, or any other
    clerical, bookkeeping, accounting, statistical, or similar
    functions performed for a depository institution.

-SOURCE-
    (Pub. L. 87-856, Sec. 3, Oct. 23, 1962, 76 Stat. 1132; Pub. L. 97-
    320, title VII, Sec. 709, Oct. 15, 1982, 96 Stat. 1541; Pub. L.
    104-208, div. A, title II, Sec. 2613(d), Sept. 30, 1996, 110 Stat.
    3009-477; Pub. L. 109-351, title VI, Sec. 602(a), Oct. 13, 2006,
    120 Stat. 1978.)


-MISC1-
                                AMENDMENTS                            
      2006 - Pub. L. 109-351 substituted "insured depository
    institution" for "insured bank".
      1996 - Pub. L. 104-208 substituted "company" for "corporation"
    wherever appearing in section catchline and text.
      1982 - Pub. L. 97-320 substituted provisions relating to
    permissible bank service corporation activities for depository
    institutions for provisions that a bank service corporation must
    provide bank services to a bank that applied for them if the
    applying bank competed with a bank which held stock in the
    corporation unless comparable services were available elsewhere at
    competitive cost or furnishing the services would be beyond the
    practical capacity of the corporation.

-End-



-CITE-
    12 USC Sec. 1864                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 18 - BANK SERVICE COMPANIES

-HEAD-
    Sec. 1864. Permissible bank service company activities for other
      persons

-STATUTE-
    (a) Services permissible other than taking deposits
      A bank service company may provide to any person any service
    authorized by this section, except that a bank service company
    shall not take deposits.
    (b) Services to be performed in State where shareholders or members
      are located
      Except as permissible under subsection (c), (d), or (e) or with
    the prior approval of the Board under section 1865(b) of this title
    in accordance with subsection (f) of this section - 
        (1) a bank service company shall not perform the services
      authorized by this section in any State other than that State in
      which its shareholders or members are located; and
        (2) all insured bank shareholders or members of a bank service
      company shall be located in the same State.
    (c) Performance where State bank or savings association is
      shareholder or member
      A bank service company in which a State bank or State savings
    association is a shareholder or member shall perform only those
    services that such State bank or State savings association
    shareholder or member is authorized to perform under the law of the
    State in which such State bank or State savings association
    operates and shall perform such services only at locations in the
    State in which such State bank or State savings association
    shareholder or member could be authorized to perform such services.
    (d) Performance where national bank or Federal savings association
      is shareholder or member
      A bank service company in which a national bank or Federal
    savings association is a shareholder or member shall perform only
    those services that such national bank or Federal savings
    association shareholder or member is authorized to perform under
    the law of the United States and shall perform such services only
    at locations in the State at which such national bank or Federal
    savings association shareholder or member could be authorized to
    perform such services.
    (e) Performance where State bank and national bank are shareholders
      or members
      A bank service company may perform - 
        (1) only those services that each depository institution
      shareholder or member is otherwise authorized to perform under
      any applicable Federal or State law; and
        (2) such services only at locations in a State in which each
      such shareholder or member is authorized to perform such
      services.
    (f) Geographic location
      Notwithstanding the other provisions of this section or any other
    provision of law, other than the provisions of Federal and State
    branching law regulating the geographic location of banks or
    savings associations to the extent that those laws are applicable
    to an activity authorized by this subsection, a bank service
    company may perform at any geographic location any service, other
    than deposit taking, that the Board has determined, by regulation,
    to be permissible for a bank holding company under section
    1843(c)(8) of this title as of the day before November 12, 1999.

-SOURCE-
    (Pub. L. 87-856, Sec. 4, Oct. 23, 1962, 76 Stat. 1132; Pub. L. 97-
    320, title VII, Sec. 709, Oct. 15, 1982, 96 Stat. 1542; Pub. L. 97-
    457, Sec. 32(b)(2), Jan. 12, 1983, 96 Stat. 2511; Pub. L. 104-208,
    div. A, title II, Sec. 2613(e), Sept. 30, 1996, 110 Stat. 3009-477;
    Pub. L. 106-102, title I, Sec. 102(b)(2), Nov. 12, 1999, 113 Stat.
    1342; Pub. L. 109-351, title VI, Sec. 602(b)(3), Oct. 13, 2006, 120
    Stat. 1979.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b). Pub. L. 109-351, Sec. 602(b)(3)(A), inserted
    "as permissible under subsection (c), (d), or (e) or" after
    "Except" in introductory provisions.
      Subsec. (c). Pub. L. 109-351, Sec. 602(b)(3)(B), inserted "or
    State savings association" after "State bank" wherever appearing.
      Subsec. (d). Pub. L. 109-351, Sec. 602(b)(3)(C), inserted "or
    Federal savings association" after "national bank" wherever
    appearing.
      Subsec. (e). Pub. L. 109-351, Sec. 602(b)(3)(D), inserted heading
    and amended text generally. Prior to amendment, text read as
    follows: "A bank service company that has both national bank and
    State bank shareholders or members shall perform only those
    services that may lawfully be performed by both any shareholder or
    member of the company which is a national bank under the law of the
    United States and any shareholder or member of the company which is
    a State bank under the law of the State in which any such State
    bank operate and shall perform such services only at locations in
    the State at which both its State bank and national bank
    shareholders or members could be authorized to perform such
    services."
      Subsec. (f). Pub. L. 109-351, Sec. 602(b)(3)(E), inserted "or
    savings associations" after "location of banks".
      1999 - Subsec. (f). Pub. L. 106-102 inserted before period at end
    "as of the day before November 12, 1999".
      1996 - Pub. L. 104-208, Sec. 2613(e)(5), substituted "company"
    for "corporation" in section catchline.
      Subsec. (a). Pub. L. 104-208, Sec. 2613(e)(1), substituted
    "company" for "corporation" in two places.
      Subsec. (b). Pub. L. 104-208, Sec. 2613(e)(1), (2), inserted "or
    members" after "shareholders" wherever appearing in text and
    substituted "company" for "corporation" in two places.
      Subsecs. (c), (d). Pub. L. 104-208, Sec. 2613(e)(1), (3),
    inserted "or member" after "shareholder" wherever appearing and
    substituted "company" for "corporation".
      Subsec. (e). Pub. L. 104-208, Sec. 2613(e)(1), (4), substituted
    "company" for "corporation", "any shareholder or member of the
    company which is a national bank" for "its national bank
    shareholder or shareholders", "any shareholder or member of the
    company which is a State bank" for "its State bank shareholder or
    shareholders", and "any such State bank" for "such State bank or
    banks", and inserted "or members" after "national bank and State
    bank shareholders" and after "State bank and national bank
    shareholders".
      Subsec. (f). Pub. L. 104-208, Sec. 2613(e)(1), substituted
    "company" for "corporation".
      1983 - Subsecs. (d), (e). Pub. L. 97-457 substituted "under the
    law of the United States" for "under this chapter".
      1982 - Pub. L. 97-320 substituted provisions relating to bank
    service corporation activities for other persons for provisions
    which read: "No bank service corporation may engage in any activity
    other than the performance of bank services for banks."

                     EFFECTIVE DATE OF 1999 AMENDMENT                 
      Amendment by Pub. L. 106-102 effective 120 days after Nov. 12,
    1999, see section 161 of Pub. L. 106-102, set out as a note under
    section 24 of this title.

-End-



-CITE-
    12 USC Sec. 1865                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 18 - BANK SERVICE COMPANIES

-HEAD-
    Sec. 1865. Prior approval for investments in bank service companies

-STATUTE-
    (a) Approval of Federal banking agency
      No insured depository institution shall invest in the capital
    stock of a bank service company that performs any service under
    authority of subsection (c), (d), or (e) of section 1864 of this
    title without prior notice, as determined by the appropriate
    Federal banking agency for the insured depository institution.
    (b) Approval of Board
      No insured depository institution shall invest in the capital
    stock of a bank service company that performs any service
    authorized only under authority of section 1864(f) of this title
    and no bank service company shall perform any activity authorized
    only under section 1864(f) of this title without the prior approval
    of the Board.
    (c) Considerations in determining approval
      In determining whether to approve or deny any application for
    prior approval or whether to approve or disapprove any notice under
    this section, the Board or the appropriate Federal banking agency,
    as the case may be, is authorized to consider the financial and
    managerial resources and future prospects of any insured depository
    institution and bank service company involved, including the
    financial capability of the insured depository institution to make
    a proposed investment under this chapter, and possible adverse
    effects such as undue concentration of resources, unfair or
    decreased competition, conflicts of interest, or unsafe or unsound
    banking practices.
    (d) Failure to act on application for approval
      In the event the Board or the appropriate Federal banking agency,
    as the case may be, fails to act on any application under this
    section within ninety days of the submission of a complete
    application to the agency, the application shall be deemed
    approved.

-SOURCE-
    (Pub. L. 87-856, Sec. 5, Oct. 23, 1962, 76 Stat. 1133; Pub. L. 95-
    630, title III, Sec. 308, Nov. 10, 1978, 92 Stat. 3677; Pub. L. 97-
    320, title VII, Sec. 709, Oct. 15, 1982, 96 Stat. 1542; Pub. L.
    103-325, title III, Sec. 323, Sept. 23, 1994, 108 Stat. 2227; Pub.
    L. 104-208, div. A, title II, Sec. 2613(f), Sept. 30, 1996, 110
    Stat. 3009-478; Pub. L. 109-351, title VI, Sec. 602(b)(4), Oct. 13,
    2006, 120 Stat. 1980.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (a). Pub. L. 109-351, Sec. 602(b)(4)(A),
    substituted "insured depository institution" for "insured bank",
    struck out "bank's" before "appropriate Federal banking agency",
    and inserted "for the insured depository institution" before period
    at end.
      Subsec. (b). Pub. L. 109-351, Sec. 602(b)(4)(B), substituted
    "insured depository institution" for "insured bank" and inserted
    "authorized only" after "performs any service" and "perform any
    activity".
      Subsec. (c). Pub. L. 109-351, Sec. 602(b)(4)(C), substituted "any
    insured depository institution" for "the bank or banks" and
    "capability of the insured depository institution" for "capability
    of the bank".
      1996 - Pub. L. 104-208 substituted "companies" for "corporations"
    in section catchline and "company" for "corporation" wherever
    appearing in text.
      1994 - Subsec. (a). Pub. L. 103-325, Sec. 323(1), substituted
    "prior notice, as determined by" for "the prior approval of".
      Subsec. (c). Pub. L. 103-325, Sec. 323(2), inserted "or whether
    to approve or disapprove any notice" after "approval".
      1982 - Pub. L. 97-320 substituted provisions relating to prior
    approval for investments in bank service corporations for
    provisions relating to regulation and examination of bank services
    for a regularly examined bank or its subsidiary or affiliate
    whether performed on or off its premises. See section 1867(c) of
    this title.
      1978 - Pub. L. 95-630 among other changes, substituted provisions
    requiring banks regularly examined by a Federal supervisory agency,
    which cause to be performed, by contract or otherwise, any bank
    service for itself, to notify such supervisory agency of the
    existence of a service relationship within 30 days after making
    such service contract or performance of service, whichever occurs
    first for provisions requiring that no bank subject to examination
    by a Federal supervisory agency may cause to be performed, by
    contract or otherwise, any bank service for itself unless
    satisfactory assurances are furnished to such supervisory agency by
    both the bank and the party performing such services that the
    performances thereof will be subject to regulation and examination
    by such agency to the same extent as if such services were being
    performed by the bank itself.

                     EFFECTIVE DATE OF 1978 AMENDMENT                 
      Amendment by Pub. L. 95-630 effective on expiration of 120 days
    after Nov. 10, 1978, see section 2101 of Pub. L. 95-630, set out as
    an Effective Date note under section 375b of this title.

-End-



-CITE-
    12 USC Sec. 1866                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 18 - BANK SERVICE COMPANIES

-HEAD-
    Sec. 1866. Services to nonstockholders or nonmembers

-STATUTE-
      No bank service company shall unreasonably discriminate in the
    provision of any services authorized under this chapter to any
    depository institution that does not own stock in or is not a
    member of the service company on the basis of the fact that such
    depository institution is in competition with an institution that
    owns stock in or is a member of the bank service company, except
    that - 
        (1) it shall not be considered unreasonable discrimination for
      a bank service company to provide services to a nonstockholding
      or nonmember institution only at a price that fully reflects all
      of the costs of offering those services, including the cost of
      capital and a reasonable return thereon; and
        (2) a bank service company may refuse to provide services to a
      nonstockholding or nonmember institution if comparable services
      are available from another source at competitive overall costs,
      or if the providing of services would be beyond the practical
      capacity of the service company.

-SOURCE-
    (Pub. L. 87-856, Sec. 6, Oct. 23, 1962, as added Pub. L. 97-320,
    title VII, Sec. 709, Oct. 15, 1982, 96 Stat. 1543; amended Pub. L.
    104-208, div. A, title II, Sec. 2613(g), Sept. 30, 1996, 110 Stat.
    3009-478.)


-MISC1-
                                AMENDMENTS                            
      1996 - Pub. L. 104-208, Sec. 2613(g)(1)-(4), (6), in section
    catchline, inserted "or nonmembers" after "nonstockholders", and in
    introductory provisions of text, substituted "company" for
    "corporation" wherever appearing and "such depository institution"
    for "the nonstockholding institution" and inserted "or is not a
    member of" after "does not own stock in" and "or is a member of"
    after "that owns stock in".
      Pars. (1), (2). Pub. L. 104-208, Sec. 2613(g)(1), (5),
    substituted "company" for "corporation" wherever appearing and
    inserted "or nonmember" after "nonstockholding".

-End-



-CITE-
    12 USC Sec. 1867                                            01/03/2007

-EXPCITE-
    TITLE 12 - BANKS AND BANKING
    CHAPTER 18 - BANK SERVICE COMPANIES

-HEAD-
    Sec. 1867. Regulation and examination of bank service companies

-STATUTE-
    (a) Principal investor
      A bank service company shall be subject to examination and
    regulation by the appropriate Federal banking agency of its
    principal investor to the same extent as its principal investor.
    The appropriate Federal banking agency of the principal shareholder
    or principal member of such a bank service company may authorize
    any other Federal banking agency that supervises any other
    shareholder or member of the bank service company to make such an
    examination.
    (b) Applicability of section 1818 of this title
      A bank service company shall be subject to the provisions of
    section 1818 of this title as if the bank service company were an
    insured depository institution. For this purpose, the appropriate
    Federal banking agency shall be the appropriate Federal banking
    agency of the principal investor of the bank service company.
    (c) Services performed by contract or otherwise
      Notwithstanding subsection (a) of this section, whenever a
    depository institution that is regularly examined by an appropriate
    Federal banking agency, or any subsidiary or affiliate of such a
    depository institution that is subject to examination by that
    agency, causes to be performed for itself, by contract or
    otherwise, any services authorized under this chapter, whether on
    or off its premises - 
        (1) such performance shall be subject to regulation and
      examination by such agency to the same extent as if such services
      were being performed by the depository institution itself on its
      own premises, and
        (2) the depository institution shall notify such agency of the
      existence of the service relationship within thirty days after
      the making of such service contract or the performance of the
      service, whichever occurs first.
    (d) Issuance of regulations and orders
      The Board and the appropriate Federal banking agencies are
    authorized to issue such regulations and orders as may be necessary
    to enable them to administer and to carry out the purposes of this
    chapter and to prevent evasions thereof.

-SOURCE-
    (Pub. L. 87-856, Sec. 7, Oct. 23, 1962, as added Pub. L. 97-320,
    title VII, Sec. 709, Oct. 15, 1982, 96 Stat. 1543; amended Pub. L.
    97-457, Sec. 32(b)(1), Jan. 12, 1983, 96 Stat. 2511; Pub. L. 104-
    208, div. A, title II, Sec. 2613(h), Sept. 30, 1996, 110 Stat.
    3009-478; Pub. L. 109-351, title VI, Sec. 602(b)(5), Oct. 13, 2006,
    120 Stat. 1980.)


-MISC1-
                                AMENDMENTS                            
      2006 - Subsec. (b). Pub. L. 109-351, Sec. 602(b)(5)(A),
    substituted "insured depository institution" for "insured bank".
      Subsec. (c). Pub. L. 109-351, Sec. 602(b)(5)(B), substituted "a
    depository institution" for "a bank" in two places in introductory
    provisions and "the depository institution" for "the bank" in pars.
    (1) and (2).
      1996 - Pub. L. 104-208, Sec. 2613(h)(3), substituted "companies"
    for "corporations" in section catchline.
      Subsec. (a). Pub. L. 104-208, Sec. 2613(h)(1), (2), substituted
    "company" for "corporation" wherever appearing and inserted "or
    principal member" after "principal shareholder" and "or member"
    after "other shareholder".
      Subsec. (b). Pub. L. 104-208, Sec. 2613(h)(1), substituted
    "company" for "corporation" wherever appearing.
      1983 - Subsec. (b). Pub. L. 97-457 substituted reference to
    section 1818 of this title for reference to the Financial
    Institutions Supervisory Act of 1966 (12 U.S.C. 1818(b) et seq.).

-End-