§1864. Permissible bank service corporation activities for other persons

(a) Services permissible other than taking deposits

A bank service corporation may provide to any person any service authorized by this section, except that a bank service corporation shall not take deposits.

(b) Services to be performed in State where shareholders 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 corporation shall not perform the services authorized by this section in any State other than that State in which its shareholders are located; and

(2) all insured bank shareholders of a bank service corporation shall be located in the same State.

(c) Performance where State bank is shareholder

A bank service corporation in which a State bank is a shareholder shall perform only those services that such State bank shareholder 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 could be authorized to perform such services.

(d) Performance where national bank is shareholder

A bank service corporation in which a national bank is a shareholder shall perform only those services that such national bank shareholder 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 could be authorized to perform such services.

(e) Performance where State bank and national bank are shareholders

A bank service corporation that has both national bank and State bank shareholders shall perform only those services that may lawfully be performed by both its national bank shareholder or shareholders under the law of the United States and its State bank shareholder or shareholders under the law of the State in which such State bank or banks operate and shall perform such services only at locations in the State at which both its State bank and national bank shareholders 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 corporation 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.

( Pub. L. 87–856, §4, Oct. 23, 1962, 76 Stat. 1132 ; Pub. L. 97–320, title VII, §709, Oct. 15, 1982, 96 Stat. 1542 ; Pub. L. 97–457, §32(b)(2), Jan. 12, 1983, 96 Stat. 2511 .)

Amendments

1983-Subsecs. (d), (e). Pub. L. 97–457 substituted "under the law of the United States" for "under this chapter".

1982-Pub. L. 97–320 substituted provisions relating to bank service corporation activities for other persons for provisions which read: "No bank service corporation may engage in any activity other than the performance of bank services for banks."

Section Referred to in Other Sections

This section is referred to in sections 1863, 1865 of this title.