Legal Authority (Section 7 of the Bank Service Company Act, 12 U.S.C. 1867

8184 Miscellaneous Statutes and, Reguations 2-29-08
¡Source: Section 5 of the Act of October 23, 1962 (Pub. L. No. 87-856; 76 Stat. 1133),
effective October 23, 1962, as amended by section 308 of title 1I of the Act of November
10, 1978 (Pub. L. No. 95-630; 92 Stat, 3677), effective March 10, 1979; and section 709 of
title VIL of the Act of October 15, 1982 (Pub. L. No. 97-320; 96 Stat. 1542), effective
October 15, 1982; section 323 of title 1I of the Act of
September 23, 1994 (Pub. L. No.
103-325; 108 Stat. 2227), effective September 23, 1994; section 2613(j of title Il of the
Act of September 30, 1996 (Pub. L. No. 104208; 110 Stat. 3009-78), effective September

30, 1996; section 602(b)(4) of title VI of the Act of October 13; 2006 (Pub.'L. No.
109-351;.120 Stat. 1980), effective October 13, 2006)

SERVICES TO NONSTOCKHOLDERS OR NONMMBERS
SEC. 6. No bank service company shall unreasonably discriminate in the provision of

authorized under ths Act to any depository institution that does not own stock
in or is not a member of the service company on the basis of the fact that the depository
institution is in competition
with an institution tht owns stock in the ban or is a member
any services

of service company" except that-

(1) it shall not be ,considered unreasonable discrimination for a ban service company
to provide, services to a nonstockholdingor nonmember institution only at a price that fully
reflects all of the costs of offering those services, including the cost of capitalind, a
reasonable return thereon; and

stockholding òr

(2) a ban service company may refuse to provide services to a non

nonmember institution if comparable services are available from, another source at
competitive overall costs, or if the providing of services would be beyond the practical
càpacity of the service, company.

¡Codifed to 12 U.S.c. 1866)
¡Source: Section 6 of the Act of October 23, 1962 (Pub. L. No. 87-856), effective October

23, 1962; as added by section 709 of title VIL of the Act of October 15, 1982 (Pub. L. No.

97-320; 96 Stat. 1543), effective October 15, 1982; section 2613(g) 'of title II of tHe Act of
effective September 30,
1996)

September 30, 1996 (Pub. L. No. 104-208; 110 Stat. 3009-478),

REGULATION AN EXAMINATION OF BANK SERVICE COMPANS
,

SEC. 7.(à) A bank service company shall be subject to examination and regulation by
the ¡ippropriate Federal banking agency of its principal investor to the sam~ extent as it~
principal investor. The appropriate Federal banng agency of the principal shareholder or

principal member of such a bank service compaiy may authorize any other Federal baring
agency that superyises any other shareholder or member of
the, ban sl?rvicecompany to

make such an examnation. .' ,

(b) A ban service company shall be subject to the provisions of sectionS 'of ,the
Federal peposit Insurance Act (12 U.S.C. ISiS) as if the ban service company wère an
insured depository institution. For ths purpose,

the appropriate Federal bànkirig agency .shall

be' the appropriate Federal banng, agency of the priCipal investor of the ban service

companY. " '.. ,'" ,',
(c) , NotwithstSnding subsection (a) of this

section, whenever ,~, depository institution that

any subsidilUor

is regulaI'Y~J(amed by an appropriate Federal banng agency, or

afliate" of such a depository"institutio~ that is subject to ,examnatiori by, that agency,
causes

to be 'performed for itself, by contract or otherwise, iny servièes authorized under

ths Act, whether on or off its premises- " , .
(l)suëh performance shall be subject

to regulation and examnatioó by súchageiicy

itself on its òwn 'premises, and '

to the same èJ(tept as if such services were being performed by the depository institition

BankService Company Act,
12U.S.C. 1865

Federal Deposit Inrance Corpration

10-31-07

8185

Miscellaneous Statutes and Regulations

(2) the depository institution shall notify such agency of the existence of the service
relationship withn thrt days after the makng of such service contract or the performance

of the service, whichever occurs first.

(d) The Board and the appropriate Federal banking agencies are authorized to issue
such regulations and orders as may be necessar to enable them to administer and to car
out the purpses of ths Act and to prevent evasions hereof.

¡Codifed to 12 U.S.c. 1867)
¡Source: Section 7 of the Act of October 23, 1962 (Pub. L. No. 87-856), effective October

23, 1962, as added by section 709 of title VIL of the Act of October 15, 1982 (Pub. L. No.
97-320; 96 Stat. 1543), effective October 15, 1982; as amended by section 32(b)(1) of the

Act of January 12, 1983 (Pub. L. No. 97-457; 96 Stat. 2511), effective January 12, 1983;
section 2613(h) of title 11 of the Act of Septmeber 30, 1996 (Pub. L No. 104-208; 110 Stat.
3009-478), effective Septembe 30, 1996; section 602(b)(5) of title VI of the Act of October
13, 2006 (Pub. L. No. 109-351; 120 Stat. 1980), effective October 13, 2006)

(The page following this is 8243.)

Bank Service Company Act,
Federal Depoit Inurace Corporation

12 U.S.C. 1867