12 U.S. Code § 1861 - Short title and definitions

This chapter may be cited as the “Bank Service Company Act”.

the term “depository institution” means, except when such term appears in connection with the term “insured depository institution”, an insured bank, aappropriate Federal banking agency or the National Credit Union Administration Board, or a financial institution the accounts or deposits of which are insured or guaranteed under State law and are eligible to be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration Board;

the term “invest” includes any advance of funds to a bank service company, whether by the purchase of stock, the making of a loan, or otherwise, except a payment for rent earned, goods sold and delivered, or services rendered prior to the making of such payment;

the term “limited liability company” means any company, partnership, trust, or similar business entity organized under the law of a State (as defined in section 1813 of this title) which provides that a member or manager of such company is not personally liable for a debt, obligation, or liability of the company solely by reason of being, or acting as, a member or manager of such company;

the term “principal investor” means the insured depository institution that has the largest dollar amount invested in the equity of a bank service company. In any case where two or more insured depository institutions have equal dollar amounts invested in a bank service company, the company shall, prior to commencing operations, select one of the insured depository institutions as its principal investor and shall notify theappropriate Federal banking agency of that choice within 5 business days of its selection; and

Subsec. (b)(5). Pub. L. 111–203, § 357(2), substituted “terms Pub. L. 109–351, § 602(b)(1)(F), substituted Pub. L. 109–351, § 602(b)(1)(A), inserted “, except when such term appears in connection with the term Pub. L. 109–351, § 602(b)(1)(B), added par. (5) and struck out former par. (5) which defined “insured bank”.

1996—Subsec. (a). Pub. L. 104–208, § 2613(a), inserted heading and amended text of subsec. (a) generally. Prior to amendment, text read as follows: “This chapter may be cited as the ‘Bank Service Corporation Act’.”

Subsec. (b)(2). Pub. L. 104–208, § 2613(b)(1), amended par. (2) generally. Prior to amendment, par. (2) read as follows: “the term ‘bank service corporation’ means a corporation organized to perform services authorized by this chapter, all of the capital stock of which is owned by one or more insured banks;”.

Subsec. (b)(6). Pub. L. 104–208, § 2613(b)(2), substituted “company” for “corporation” and struck out “and” after semicolon at end.

Subsec. (b)(7). Pub. L. 104–208, § 2613(b)(3), added par. (7). Former par. (7) redesignated (8).

Subsec. (b)(8). Pub. L. 104–208, § 2613(b)(4), substituted “company” for “corporation” wherever appearing and “equity” for “capital stock”.

1983—Subsec. (b)(4). Pub. L. 97–457 substituted “a” for “or another” after “insured bank,” and inserted reference to a financial institution insured by State law and eligible to be insured by certain Federal agencies.

1982—Subsec. (a). Pub. L. 97–320 substituted provision that this chapter may be cited as the “Bank Service Corporation Act” for provision that term “Federal supervisory agency” meant the Comptroller of the Currency, theFederal Reserve System , or theFederal Deposit Insurance Corporation .

Subsec. (b). Pub. L. 97–320 substituted definitions of Pub. L. 97–320 redesignated provisions of subsec. (c) defining “bank service corporation” as (b)(2), and revised definition.

Subsec. (d). Pub. L. 97–320 redesignated provisions of subsec. (d) as (b)(6).

Amendment by Pub. L. 111–203 effective on the transfer date, see section 351 of Pub. L. 111–203, set out as a note under section 906 of Title 2, The Congress .