§ 1861. — Short title and definitions.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1861]
TITLE 12--BANKS AND BANKING
CHAPTER 18--BANK SERVICE COMPANIES
Sec. 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) 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 banks; 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
banks.
(3) the term ``Board'' means the Board of Governors of the
Federal Reserve System;
(4) the term ``depository institution'' means an insured bank,
financial institution subject to examination by the Federal Home
Loan Bank Board 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) the term ``insured bank'' shall have the meaning provided in
section 1813(h) 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;
and
(8) the term ``principal investor'' means the insured bank that
has the largest dollar amount invested in the equity of a bank
service company. In any case where two or more insured banks have
equal dollar amounts invested in a bank service company, the company
shall, prior to commencing operations, select one of the insured
banks as its principal investor and shall notify the bank's
appropriate Federal banking agency of that choice within 5 business
days of its selection.
(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.)
Amendments
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).
Transfer of Functions
Federal Home Loan Bank Board and 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.
