12-U.S.C.-1864
§1864 – Permissible Bank Service Company Activities For Other Persons
Pathway
Title 12 > Chapter 18 > Section 1864
Details
- Reference: Section 1864
- Legend: §1864 – Permissible Bank Service Company Activities For Other Persons
- USCode Year: 2013
Provision Content
(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.
(Pub. L. 87–856, §4, Oct. 23, 1962, 76 Stat. 1132; Pub. L. 97–320, title VII, §709, Oct. 15, 1982, 96 Stat. 1542; Pub. L. 97–457, §32(b)(2), Jan. 12, 1983, 96 Stat. 2511; Pub. L. 104–208, div. A, title II, §2613(e), Sept. 30, 1996, 110 Stat. 3009–477; Pub. L. 106–102, title I, §102(b)(2), Nov. 12, 1999, 113 Stat. 1342; Pub. L. 109–351, title VI, §602(b)(3), Oct. 13, 2006, 120 Stat. 1979.)
Amendments
2006—Subsec. (b). Pub. L. 109–351, §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, §602(b)(3)(B), inserted or State savings association after State bank wherever appearing.
Subsec. (d). Pub. L. 109–351, §602(b)(3)(C), inserted or Federal savings association after national bank wherever appearing.
Subsec. (e). Pub. L. 109–351, §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, §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, §2613(e)(5), substituted company for corporation in section catchline.
Subsec. (a). Pub. L. 104–208, §2613(e)(1), substituted company for corporation in two places.
Subsec. (b). Pub. L. 104–208, §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, §2613(e)(1), (3), inserted or member after shareholder wherever appearing and substituted company for corporation.
Subsec. (e). Pub. L. 104–208, §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, §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.
U.S. Encyclopedia of Law Coverage
12-U.S.C.-1861 in the Legal Encyclopedia: Banking Law
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12-U.S.C.-1841 in the Legal Encyclopedia: Credit Institutions
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