Laws: Cases and Codes : U.S. Code : Title 12 : Section 1867


   
U.S. Code as of: 01/19/04
Section 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 service company.
    (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 its premises - 
        (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 first.
    (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.



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