§ 1864. — Permissible bank service company activities for other persons.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1864]
TITLE 12--BANKS AND BANKING
CHAPTER 18--BANK SERVICE COMPANIES
Sec. 1864. Permissible bank service company activities for other
persons
(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 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 is shareholder or member
A bank service company in which a State bank is a shareholder or
member shall perform only those services that such State bank
shareholder or member is authorized to perform under the law of the
State in which such State bank operates and shall perform such services
only at locations in the State in which such State bank shareholder or
member could be authorized to perform such services.
(d) Performance where national bank is shareholder or member
A bank service company in which a national bank is a shareholder or
member shall perform only those services that such national bank
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 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 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 \1\ 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.
---------------------------------------------------------------------------
\1\ So in original. Probably should be ``operates''.
---------------------------------------------------------------------------
(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 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, 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.)
Amendments
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 heading and 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 in heading and
text 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.
Section Referred to in Other Sections
This section is referred to in sections 1863, 1865 of this title.
