12 U.S.C. § 1861 — Short title and definitions

(a) Short title. This chapter may be called the “Bank Service Company Act.”

(b) Definitions. For this chapter:

(1) “Appropriate Federal banking agency” has the meaning in section 1813(q) of this title.

(2) “Bank service company” means (A) a corporation organized to perform services authorized by this chapter whose entire capital stock is owned by one or more insured depository institutions, or (B) a limited liability company organized for those services whose members are one or more insured depository institutions.

(3) “Board” means the Board of Governors of the Federal Reserve System.

(4) “Depository institution,” except when used with “insured depository institution,” means an insured bank; a savings association; a financial institution examined by the appropriate Federal banking agency or the National Credit^* Union Administration Board; or a financial institution whose accounts or deposits are insured or guaranteed under State^* law and eligible for insurance by the Federal Deposit Insurance Corporation or National Credit Union Administration Board.

(5) “Insured depository institution.” “Depository institution” and “savings association” have the meanings in section 1813 of this title.

(6) “Invest” includes any advance of money to a bank service company, including buying stock, making a loan, or otherwise advancing funds. It does not include paying for rent already earned, goods already sold and delivered, or services already performed.

(7) “Limited liability company” means a company, partnership, trust, or similar business entity organized under State law, as “State” is defined in section 1813, where a member or manager is not personally liable for the entity’s debt, obligation, or liability solely because the person^* is or acts as a member or manager.

(8) “Principal investor” means the insured depository institution that has invested the largest dollar amount in a bank service company’s equity. If two or more have invested equal amounts, the company must choose one before beginning operations and notify that institution’s appropriate Federal banking agency within 5 business days.

(9) “State depository institution,” “Federal depository institution,” “State savings association,” and “Federal savings association” have the meanings in section 1813 of this title.