12 U.S.C. § 1867 — Regulation and examination of bank service companies
submitted 64 years ago by Pub. L. 87-856 to r/title-12-BANKS-AND-BANKING · 314 words · no verdicts yet
A bank service company is examined and regulated like its principal investor and is treated like an insured depository institution for a specified enforcement law. Services performed for a depository institution remain subject to examination, and the institution must report the service relationship.
(a) Principal investor*. A bank service company* is subject to examination and regulation by the principal investor’s appropriate Federal banking agency to the same extent as the investor. That agency may authorize another Federal banking agency supervising another shareholder or member to examine the company.
(b) Applicability of section 1818. A bank service company is subject to 12 U.S.C. § 1818 as if it were an insured depository institution*. For this purpose, the appropriate Federal banking agency is the principal investor’s agency.
(c) Services performed by contract or otherwise. Despite subsection (a), when a depository institution regularly examined by an appropriate Federal banking agency, or its subsidiary or affiliate* subject to that agency’s examination, has services authorized under this chapter performed for it by contract or otherwise, on or off its premises, (1) the services are subject to that agency’s regulation and examination as fully as if the institution itself performed them on its premises, and (2) the institution must notify each such agency of the service relationship within 30 days after the service contract is made or the service is performed, whichever comes first.
(d) Issuance of regulations and orders. The Board* and appropriate Federal banking agencies may issue regulations and orders needed to administer and carry out this chapter and prevent evasion of it.
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.
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 depository institution*. For this purpose, the appropriate Federal banking agency shall be the appropriate Federal banking agency of the principal investor of the bank service company.
Notwithstanding subsection (a) of this section, whenever a depository institution that is regularly examined by an appropriate Federal banking agency, or any subsidiary or affiliate* of such a depository institution 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—
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 depository institution itself on its own premises, and
the depository institution shall notify each 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.
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.
Source credit: (Pub. L. 87–856, § 7, Oct. 23, 1962, as added Pub. L. 97–320, title VII, § 709, Oct. 15, 1982, 96 Stat. 1543; amended Pub. L. 97–457, § 32(b)(1), Jan. 12, 1983, 96 Stat. 2511; Pub. L. 104–208, div. A, title II, § 2613(h), Sept. 30, 1996, 110 Stat. 3009–478; Pub. L. 109–351, title VI, § 602(b)(5), Oct. 13, 2006, 120 Stat. 1980; Pub. L. 111–203, title III, § 357(3), July 21, 2010, 124 Stat. 1548.)
- 1962Enacted · Pub. L. 87-856 · 96 Stat. 1543
- 1983Amended · Pub. L. 97-457 · 96 Stat. 2511
- 1996Amended · Pub. L. 104-208 · 110 Stat. 3009
- 2006Amended · Pub. L. 109-351 · 120 Stat. 1980
- 2010Amended · Pub. L. 111-203 · 124 Stat. 1548
A history note hasn’t been published yet. The record shows enactment by Pub. L. 87-856 on 1962-10-23.
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