Laws: Cases and Codes : U.S. Code : Title 12 : Section 1864


   
U.S. Code as of: 01/19/04
Section 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.

    (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.



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