§ 1867. — Regulation and examination of bank service companies.
[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. 1867. Regulation and examination of bank service companies
(a) Principal investor
A bank service company shall be subject to examination and
regulation by the appropriate Federal banking agency of its principal
investor to the same extent as its principal investor. The appropriate
Federal banking agency of the principal shareholder or principal member
of such a bank service company may authorize any other Federal banking
agency that supervises any other shareholder or member of the bank
service company to make such an examination.
(b) Applicability of section 1818 of this title
A bank service company shall be subject to the provisions of section
1818 of this title as if the bank service company were an insured bank.
For this purpose, the appropriate Federal banking agency shall be the
appropriate Federal banking agency of the principal investor of the bank
(c) Services performed by contract or otherwise
Notwithstanding subsection (a) of this section, whenever a bank that
is regularly examined by an appropriate Federal banking agency, or any
subsidiary or affiliate of such a bank that is subject to examination by
that agency, causes to be performed for itself, by contract or
otherwise, any services authorized under this chapter, whether on or off
(1) such performance shall be subject to regulation and
examination by such agency to the same extent as if such services
were being performed by the bank itself on its own premises, and
(2) the bank shall notify such agency of the existence of the
service relationship within thirty days after the making of such
service contract or the performance of the service, whichever occurs
(d) Issuance of regulations and orders
The Board and the appropriate Federal banking agencies are
authorized to issue such regulations and orders as may be necessary to
enable them to administer and to carry out the purposes of this chapter
and to prevent evasions thereof.
(Pub. L. 87-856, Sec. 7, Oct. 23, 1962, as added Pub. L. 97-320, title
VII, Sec. 709, Oct. 15, 1982, 96 Stat. 1543; amended Pub. L. 97-457,
Sec. 32(b)(1), Jan. 12, 1983, 96 Stat. 2511; Pub. L. 104-208, div. A,
title II, Sec. 2613(h), Sept. 30, 1996, 110 Stat. 3009-478.)
1996--Pub. L. 104-208, Sec. 2613(h)(3), substituted ``companies''
for ``corporations'' in section catchline.
Subsec. (a). Pub. L. 104-208, Sec. 2613(h)(1), (2), substituted
``company'' for ``corporation'' wherever appearing and inserted ``or
principal member'' after ``principal shareholder'' and ``or member''
after ``other shareholder''.
Subsec. (b). Pub. L. 104-208, Sec. 2613(h)(1), substituted
``company'' for ``corporation'' wherever appearing.
1983--Subsec. (b). Pub. L. 97-457 substituted reference to section
1818 of this title for reference to the Financial Institutions
Supervisory Act of 1966 (12 U.S.C. 1818(b) et seq.).