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U.S. Code as of:
01/19/04
Section 1865. Prior approval for investments in bank service companies
(a) Approval of Federal banking agency
No insured bank shall invest in the capital stock of a bank
service company that performs any service under authority of
subsection (c), (d), or (e) of section 1864 of this title without
prior notice, as determined by the bank's appropriate Federal
banking agency.
(b) Approval of Board
No insured bank shall invest in the capital stock of a bank
service company that performs any service under authority of
section 1864(f) of this title and no bank service company shall
perform any activity under section 1864(f) of this title without
the prior approval of the Board.
(c) Considerations in determining approval
In determining whether to approve or deny any application for
prior approval or whether to approve or disapprove any notice under
this section, the Board or the appropriate Federal banking agency,
as the case may be, is authorized to consider the financial and
managerial resources and future prospects of the bank or banks and
bank service company involved, including the financial capability
of the bank to make a proposed investment under this chapter, and
possible adverse effects such as undue concentration of resources,
unfair or decreased competition, conflicts of interest, or unsafe
or unsound banking practices.
(d) Failure to act on application for approval
In the event the Board or the appropriate Federal banking agency,
as the case may be, fails to act on any application under this
section within ninety days of the submission of a complete
application to the agency, the application shall be deemed
approved.
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