§1863 — Title 12 Banks and Banking | U.S. Code

Summary

Even if sections 1864 and 1865 would otherwise apply, an insured depository institution may invest in a bank service company, and that company may do certain services only for depository institutions. These services include processing checks and deposits; calculating and posting interest, credits, and charges; preparing and mailing checks, statements, and notices; and other clerical, bookkeeping, accounting, or statistical tasks.

Title 12, §1863

Banks and Banking — Source: USLM XML via OLRC

Without regard to the provisions of section 1864 and 1865 of this title, an insured depository institution may invest in a bank service company that performs, and a bank service company may perform, the following services only for depository institutions: check and deposit sorting and posting, computation and posting of interest and other credits and charges, preparation and mailing of checks, statements, notices, and similar items, or any other clerical, bookkeeping, accounting, statistical, or similar functions performed for a depository institution.

Notes & Related Subsidiaries

Editorial Notes

Amendments

2006—Pub. L. 109–351 substituted “insured depository institution” for “insured bank”. 1996—Pub. L. 104–208 substituted “company” for “corporation” wherever appearing in section catchline and text. 1982—Pub. L. 97–320 substituted provisions relating to permissible bank service corporation activities for depository institutions for provisions that a bank service corporation must provide bank services to a bank that applied for them if the applying bank competed with a bank which held stock in the corporation unless comparable services were available elsewhere at competitive cost or furnishing the services would be beyond the practical capacity of the corporation.

§1863 Permissible Bank Service Company Activities for Depository Institutions

Summary

Title 12, §1863

Notes & Related Subsidiaries

Editorial Notes

Amendments

Citations & Metadata