12 U.S.C. § 1861 : US Code - Section 1861: Short title and definitions

Search 12 U.S.C. § 1861 : US Code - Section 1861: Short title and definitions

(a) Short title
This chapter may be cited as the "Bank Service Company Act".
(b) Definitions
For 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, financial institution subject to
examination by the Director of the Office of Thrift Supervision
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, the Federal Savings and
Loan Insurance Corporation, or the National Credit Union
Administration Board;
(5) Insured depository institution. - The term "insured
depository institution" has the same meaning as in section
1813(c) 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.