Title 12 — Banks and BankingRelease 119-73
§1866 Services to nonstockholders or nonmembers
Title 12 › Chapter CHAPTER 18— - BANK SERVICE COMPANIES › § 1866
Summary
Bank service companies must not unfairly refuse or treat differently a depository institution that doesn’t own stock in or isn’t a member just because it competes with an owner. They can, however, charge only prices that cover all costs (including cost of capital and a reasonable return), or refuse service if comparable services are available elsewhere at competitive overall costs or if the company lacks the practical capacity to provide the service.
Full Legal Text
Title 12, §1866
Banks and Banking — Source: USLM XML via OLRC
No bank service company shall unreasonably discriminate in the provision of any services authorized under this chapter to any depository institution that does not own stock in or is not a member of the service company on the basis of the fact that such depository institution is in competition with an institution that owns stock in or is a member of the bank service company, except that—
(1)it shall not be considered unreasonable discrimination for a bank service company to provide services to a nonstockholding or nonmember institution only at a price that fully reflects all of the costs of offering those services, including the cost of capital and a reasonable return thereon; and
(2)a bank service company may refuse to provide services to a nonstockholding or nonmember institution if comparable services are available from another source at competitive overall costs, or if the providing of services would be beyond the practical capacity of the service company.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
1996—Pub. L. 104–208, § 2613(g)(1)–(4), (6), in section catchline, inserted “or nonmembers” after “nonstockholders”, and in introductory provisions of text, substituted “company” for “corporation” wherever appearing and “such depository institution” for “the nonstockholding institution” and inserted “or is not a member of” after “does not own stock in” and “or is a member of” after “that owns stock in”. Pars. (1), (2). Pub. L. 104–208, § 2613(g)(1), (5), substituted “company” for “corporation” wherever appearing and inserted “or nonmember” after “nonstockholding”.
Reference
Citations & Metadata
Citation
12 U.S.C. § 1866
Title 12 — Banks and Banking
Last Updated
Apr 6, 2026
Release point: 119-73