12 U.S.C. § 1861 | Short title and definitions

(a)

Short title

This chapter may be cited as the “Bank Service Company Act”.

(b)

Definitions

For the purpose of this chapter—

(1)

section 1813(q) of this title the term “appropriate Federal banking agency” shall have the meaning provided in ;

(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, a savings association, a financial institution subject to examination by the appropriate Federal banking agency 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 or the National Credit Union Administration Board;

(5)

Insured depository institution .—

section 1813 of this titleThe terms “depository institution” and “savings association” have the same meanings as in ;

(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)

section 1813 of this title the term “limited liability company” means any company, partnership, trust, or similar business entity organized under the law of a State (as defined in ) 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)

section 1813 of this title the terms “State depository institution”, “Federal depository institution”, “State savings association” and “Federal savings association” have the same meanings as in .

Pub. L. 87–856, § 1Oct. 23, 196276 Stat. 1132 Pub. L. 97–320, title VII, § 709Oct. 15, 198296 Stat. 1540 Pub. L. 97–457, § 32(a)Jan. 12, 198396 Stat. 2511 Pub. L. 104–208, div. A, title II, § 2613(a)Sept. 30, 1996110 Stat. 3009–476 Pub. L. 109–351, title VI, § 602(b)(1)Oct. 13, 2006120 Stat. 1979 Pub. L. 111–203, title III, § 357(1)July 21, 2010124 Stat. 1547(, , ; , , ; , , ; , (b), , ; , , ; , (2), , , 1548.)

Editorial Notes

Amendments

Pub. L. 111–203, § 357(1)2010—Subsec. (b)(4). , inserted “a savings association,” after “an insured bank,”, substituted “appropriate Federal banking agency” for “Director of the Office of Thrift Supervision”, and struck out “, the Federal Savings and Loan Insurance Corporation,” after “Federal Deposit Insurance Corporation”.

Pub. L. 111–203, § 357(2)Subsec. (b)(5). , substituted “terms ‘depository institution’ and ‘savings association’ have the same meanings as in section 1813” for “term ‘insured depository institution’ has the same meaning as in section 1813(c)”.

Pub. L. 109–351, § 602(b)(1)(F)2006—Subsec. (b)(2)(A)(ii), (B)(ii). , substituted “insured depository institutions” for “insured banks”.

Pub. L. 109–351, § 602(b)(1)(A)Subsec. (b)(4). , 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”.

Pub. L. 109–351, § 602(b)(1)(B)Subsec. (b)(5). , added par. (5) and struck out former par. (5) which defined “insured bank”.

Pub. L. 109–351, § 602(b)(1)(G)Subsec. (b)(8). , 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”.

Pub. L. 109–351, § 602(b)(1)(C)Subsec. (b)(9). –(E), added par. (9).

Pub. L. 104–208, § 2613(a)1996—Subsec. (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’.”

Pub. L. 104–208, § 2613(b)(1)Subsec. (b)(2). , 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;”.

Pub. L. 104–208, § 2613(b)(2)Subsec. (b)(6). , substituted “company” for “corporation” and struck out “and” after semicolon at end.

Pub. L. 104–208, § 2613(b)(3)Subsec. (b)(7). , added par. (7). Former par. (7) redesignated (8).

Pub. L. 104–208, § 2613(b)(4)Subsec. (b)(8). , substituted “company” for “corporation” wherever appearing and “equity” for “capital stock”.

Pub. L. 104–208, § 2613(b)(3), redesignated par. (7) as (8).

Pub. L. 97–4571983—Subsec. (b)(4). 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.

Pub. L. 97–3201982—Subsec. (a). 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.

Pub. L. 97–320Subsec. (b). 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.

Pub. L. 97–320Subsec. (c). redesignated provisions of subsec. (c) defining “bank service corporation” as (b)(2), and revised definition.

Pub. L. 97–320Subsec. (d). redesignated provisions of subsec. (d) as (b)(6).

Statutory Notes and Related Subsidiaries

Effective Date of 2010 Amendment

Pub. L. 111–203 section 351 of Pub. L. 111–203 section 906 of Title 2Amendment by effective on the transfer date, see , set out as a note under , The Congress.