Permissible bank service company activities for depository institutions

  1. Law
  2. USC 12
  3. Banks And Banking
  4. BANK SERVICE COMPANIES
  5. Permissible bank service company activities for depository institutions

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§1863. Permissible bank service company activities for depository institutions

Without regard to the provisions of sections 1864 and 1865 of this title, an insured depository institution may invest in a bank service company that performs, and a bank service company may perform, the following services only for depository institutions: check and deposit sorting and posting, computation and posting of interest and other credits and charges, preparation and mailing of checks, statements, notices, and similar items, or any other clerical, bookkeeping, accounting, statistical, or similar functions performed for a depository institution.

( Pub. L. 87–856, §3, Oct. 23, 1962, 76 Stat. 1132 ; Pub. L. 97–320, title VII, §709, Oct. 15, 1982, 96 Stat. 1541 ; Pub. L. 104–208, div. A, title II, §2613(d), Sept. 30, 1996, 110 Stat. 3009–477 ; Pub. L. 109–351, title VI, §602(a), Oct. 13, 2006, 120 Stat. 1978 .)

Amendments

2006-Pub. L. 109–351 substituted "insured depository institution" for "insured bank".

1996-Pub. L. 104–208 substituted "company" for "corporation" wherever appearing in section catchline and text.

1982-Pub. L. 97–320 substituted provisions relating to permissible bank service corporation activities for depository institutions for provisions that a bank service corporation must provide bank services to a bank that applied for them if the applying bank competed with a bank which held stock in the corporation unless comparable services were available elsewhere at competitive cost or furnishing the services would be beyond the practical capacity of the corporation.


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