{"identifier":"/us/usc/t12/s1861","title":12,"num":"\u00a7\u202f1861.","heading":"Short title and definitions","text":"\u00a7\u202f1861.\nShort title and definitions\n(a)\nShort title\nThis chapter may be cited as the \u201cBank Service Company Act\u201d.\n(b)\nDefinitions\nFor the purpose of this chapter\u2014\n(1) the term \u201cappropriate Federal banking agency\u201d shall have the meaning provided in\nsection 1813(q) of this title\n(2) the term \u201cbank service company\u201d means\u2014\n(A) any corporation\u2014\n(i) which is organized to perform services authorized by this chapter; and\n(ii) all of the capital stock of which is owned by 1 or more insured depository institutions; and\n(B) any limited liability company\u2014\n(i) which is organized to perform services authorized by this chapter; and\n(ii) all of the members of which are 1 or more insured depository institutions.\n(3) the term \u201cBoard\u201d means the Board of Governors of the Federal Reserve System;\n(4) the term \u201cdepository institution\u201d means, except when such term appears in connection with the term \u201cinsured depository institution\u201d, 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;\n(5)\nInsured depository institution.\u2014\nThe terms \u201cdepository institution\u201d and \u201csavings association\u201d have the same meanings as in\nsection 1813 of this title\n(6) the term \u201cinvest\u201d 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;\n(7) the term \u201climited liability company\u201d means any company, partnership, trust, or similar business entity organized under the law of a State (as defined in\nsection 1813 of this title\n(8) the term \u201cprincipal investor\u201d 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\u2019s appropriate Federal banking agency of that choice within 5 business days of its selection; and\n(9) the terms \u201cState depository institution\u201d, \u201cFederal depository institution\u201d, \u201cState savings association\u201d and \u201cFederal savings association\u201d have the same meanings as in\nsection 1813 of this title","url":"https://projectusc.org/usc/t12/s1861.html","content":[{"t":"sec","id":"/us/usc/t12/s1861","children":[{"t":"num","text":"\u00a7\u202f1861."},{"t":"heading","text":"Short title and definitions"},{"t":"subsec","id":"/us/usc/t12/s1861/a","children":[{"t":"num","text":"(a)"},{"t":"heading","text":"Short title"},{"t":"content","children":[{"t":"p","text":"This chapter may be cited as the \u201cBank Service Company Act\u201d.","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subsec","id":"/us/usc/t12/s1861/b","children":[{"t":"num","text":"(b)"},{"t":"heading","text":"Definitions"},{"t":"chapeau","text":"For the purpose of this chapter\u2014"},{"t":"para","id":"/us/usc/t12/s1861/b/1","children":[{"t":"num","text":"(1)"},{"t":"content","text":" the term \u201cappropriate Federal banking agency\u201d shall have the meaning provided in ","children":[{"t":"ref","text":"section 1813(q) of this title","href":"/us/usc/t12/s1813/q","tail":";"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1861/b/2","children":[{"t":"num","text":"(2)"},{"t":"chapeau","text":" the term \u201cbank service company\u201d means\u2014"},{"t":"subpara","id":"/us/usc/t12/s1861/b/2/A","children":[{"t":"num","text":"(A)"},{"t":"chapeau","text":" any corporation\u2014"},{"t":"clause","id":"/us/usc/t12/s1861/b/2/A/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" which is organized to perform services authorized by this chapter; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1861/b/2/A/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" all of the capital stock of which is owned by 1 or more insured depository institutions; and","tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"subpara","id":"/us/usc/t12/s1861/b/2/B","children":[{"t":"num","text":"(B)"},{"t":"chapeau","text":" any limited liability company\u2014"},{"t":"clause","id":"/us/usc/t12/s1861/b/2/B/i","children":[{"t":"num","text":"(i)"},{"t":"content","text":" which is organized to perform services authorized by this chapter; and","tail":"\n"}],"tail":"\n"},{"t":"clause","id":"/us/usc/t12/s1861/b/2/B/ii","children":[{"t":"num","text":"(ii)"},{"t":"content","text":" all of the members of which are 1 or more insured depository institutions.","tail":"\n"}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1861/b/3","children":[{"t":"num","text":"(3)"},{"t":"content","text":" the term \u201cBoard\u201d means the Board of Governors of the Federal Reserve System;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1861/b/4","children":[{"t":"num","text":"(4)"},{"t":"content","text":" the term \u201cdepository institution\u201d means, except when such term appears in connection with the term \u201cinsured depository institution\u201d, 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;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1861/b/5","children":[{"t":"num","text":"(5)"},{"t":"heading","text":"Insured depository institution.\u2014"},{"t":"content","text":"The terms \u201cdepository institution\u201d and \u201csavings association\u201d have the same meanings as in ","children":[{"t":"ref","text":"section 1813 of this title","href":"/us/usc/t12/s1813","tail":";"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1861/b/6","children":[{"t":"num","text":"(6)"},{"t":"content","text":" the term \u201cinvest\u201d 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;","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1861/b/7","children":[{"t":"num","text":"(7)"},{"t":"content","text":" the term \u201climited liability company\u201d means any company, partnership, trust, or similar business entity organized under the law of a State (as defined in ","children":[{"t":"ref","text":"section 1813 of this title","href":"/us/usc/t12/s1813","tail":") 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;"}],"tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1861/b/8","children":[{"t":"num","text":"(8)"},{"t":"content","text":" the term \u201cprincipal investor\u201d 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\u2019s appropriate Federal banking agency of that choice within 5 business days of its selection; and","tail":"\n"}],"tail":"\n"},{"t":"para","id":"/us/usc/t12/s1861/b/9","children":[{"t":"num","text":"(9)"},{"t":"content","text":" the terms \u201cState depository institution\u201d, \u201cFederal depository institution\u201d, \u201cState savings association\u201d and \u201cFederal savings association\u201d have the same meanings as in ","children":[{"t":"ref","text":"section 1813 of this title","href":"/us/usc/t12/s1813","tail":"."}],"tail":"\n"}],"tail":"\n"}],"tail":"\n"},{"t":"text","text":"\n"},{"t":"text","text":"\n"}]}]}