12 U.S.C. § 1865 : US Code - Section 1865: Prior approval for investments in bank service companies

Search 12 U.S.C. § 1865 : US Code - Section 1865: Prior approval for investments in bank service companies

(a) Approval of Federal banking agency
No insured depository institution shall invest in the capital
stock of a bank service company that performs any service under
authority of subsection (c), (d), or (e) of section 1864 of this
title without prior notice, as determined by the appropriate
Federal banking agency for the insured depository institution.
(b) Approval of Board
No insured depository institution shall invest in the capital
stock of a bank service company that performs any service
authorized only under authority of section 1864(f) of this title
and no bank service company shall perform any activity authorized
only under section 1864(f) of this title without the prior approval
of the Board.
(c) Considerations in determining approval
In determining whether to approve or deny any application for
prior approval or whether to approve or disapprove any notice under
this section, the Board or the appropriate Federal banking agency,
as the case may be, is authorized to consider the financial and
managerial resources and future prospects of any insured depository
institution and bank service company involved, including the
financial capability of the insured depository institution to make
a proposed investment under this chapter, and possible adverse
effects such as undue concentration of resources, unfair or
decreased competition, conflicts of interest, or unsafe or unsound
banking practices.
(d) Failure to act on application for approval
In the event the Board or the appropriate Federal banking agency,
as the case may be, fails to act on any application under this
section within ninety days of the submission of a complete
application to the agency, the application shall be deemed
approved.