§ 1862. — Amount of investment in bank service company.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
TITLE 12--BANKS AND BANKING
CHAPTER 18--BANK SERVICE COMPANIES
Sec. 1862. Amount of investment in bank service company
Notwithstanding any limitation or prohibition otherwise imposed by
any provision of law exclusively relating to banks, an insured bank may
invest not more than 10 per centum of paid-in and unimpaired capital and
unimpaired surplus in a bank service company. No insured bank shall
invest more than 5 per centum of its total assets in bank service
(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.)
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.''