Short title and definitions

12 U.S.C. § 1861
in effect
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(a) Short titleThis chapter may be cited as the “Bank Service Company Act”. (b) DefinitionsFor the purpose of this chapter—(1) the term “appropriate Federal banking agency” shall have the meaning provided in section 1813(q) of this title; (2) the term “bank service company” means—(A) any corporation—(i) which is organized to perform services authorized by this chapter; and (ii) all of the capital stock of which is owned by 1 or more insured depository institutions; and (B) any limited liability company—(i) which is organized to perform services authorized by this chapter; and (ii) all of the members of which are 1 or more insured depository institutions. (3) the term “Board” means the Board of Governors of the Federal Reserve System; (4) the term “depository institution” means, except when such term appears in connection with the term “insured depository institution”, an insured bank, a savings association, a financial institution subject to examination by the appropriate Federal banking agency or the National Credit Union Administration Board, or a financial institution the accounts or deposits of which are insured or guaranteed under State law and are eligible to be insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration Board; (5) Insured depository institution.—The terms “depository institution” and “savings association” have the same meanings as in section 1813 of this title; (6) the term “invest” includes any advance of funds to a bank service company, whether by the purchase of stock, the making of a loan, or otherwise, except a payment for rent earned, goods sold and delivered, or services rendered prior to the making of such payment; (7) the term “limited liability company” means any company, partnership, trust, or similar business entity organized under the law of a State (as defined in section 1813 of this title) which provides that a member or manager of such company is not personally liable for a debt, obligation, or liability of the company solely by reason of being, or acting as, a member or manager of such company; (8) the term “principal investor” means the insured depository institution that has the largest dollar amount invested in the equity of a bank service company. In any case where two or more insured depository institutions have equal dollar amounts invested in a bank service company, the company shall, prior to commencing operations, select one of the insured depository institutions as its principal investor and shall notify the depository institution’s appropriate Federal banking agency of that choice within 5 business days of its selection; and (9) the terms “State depository institution”, “Federal depository institution”, “State savings association” and “Federal savings association” have the same meanings as in section 1813 of this title.

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