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8000 - Miscellaneous Statutes and Regulations


Chapter 7.—JUDICIAL REVIEW

Sec.

701. Application; definitions.
702. Right of review.
703. Form and venue of proceeding.
704. Actions reviewable.
705. Relief pending review.
706. Scope of review.

§ 701.  Application; definitions.

(a)  This chapter applies, according to the provisions thereof, except to the extent that--

(1)  statutes preclude judicial review; or

(2)  agency action is committed to agency discretion by law.

(b)  For the purpose of this chapter--

(1)  "agency" means each authority of the Government of the United States, whether or not it is within or subject to review by another agency, but does not include--

(A)  the Congress;

(B)  the courts of the United States;

(C)  the governments of the territories or possessions of the United States;

(D)  the government of the District of Columbia;

(E)  agencies composed of representatives of the parties or of representatives of organizations of the parties to the disputes determined by them;

(F)  courts martial and military commissions;

(G)  military authority exercised in the field in time of war or in occupied territory; or

(H)  functions conferred by sections 1738, 1739, 1743, and 1744 of title 12; subchapter II of chapter 471 of title 49; or sections 1884, 1891--1902, and former section 1641(b)(2), of title 50, appendix; and

(2)  "person", "rule", "order", "license", "sanction", "relief", and "agency action" have the meanings given them by section 551 of this title.

[Codified to 5 U.S.C. 701]

[Source:  Section 701 of the Act of September 6, 1966 (Pub. L. No. 89--554; 80 Stat. 392), effective September 6, 1966, as amended by section 5(a) of the Act of July 5, 1994 (Pub. L. No. 103--272; 108 Stat. 1373), effective July 5, 1994; section 5(a)(3) of the Act of January 4, 2011 (Pub. L. No. 111--350; 124 Stat. 3841), effective January 4, 2011]

§ 702.  Right of review.

A person suffering legal wrong because of agency action, or adversely affected or aggrieved by agency action within the meaning of a relevant statute, is entitled to judicial review thereof. An action in a court of the United States seeking relief other than money damages and stating a claim that an agency or an officer or employee thereof acted or failed to act in an official capacity or under color of legal authority shall not be dismissed nor relief therein be denied on the ground that it is against the United States or that the United States is an indispensable party. The United States may be named as a defendant in any such action, and a judgment or decree may be entered against the United States: Provided, That any mandatory or injunctive decree shall specify the Federal officer or officers (by name or by title), and their successors in office, personally responsible for compliance. Nothing herein (1) affects other limitations on judicial review or the power or duty of the court to dismiss any action or deny relief on any other appropriate legal or equitable ground; or (2) confers authority to grant relief if any other statute that grants consent to suit expressly or impliedly forbids the relief which is sought.

[Codified to 5 U.S.C. 702]

[Source:  Section 702 of the Act of September 6, 1966 (Pub. L. No. 89--554; 80 Stat. 392), effective September 6, 1966, as amended by section 1 of the Act of October 21, 1976 (Pub. L. No. 94--574, 90 Stat. 2721), effective October 21, 1976]

§ 703.  Form and venue of proceeding.

The form of proceeding for judicial review is the special statutory review proceeding relevant to the subject matter in a court specified by statute or, in the absence or inadequacy thereof, any applicable form of legal action, including actions for declaratory judgments or writs of prohibitory or mandatory injunction or habeas corpus, in a court of competent jurisdiction. If no special statutory review proceeding is applicable, the action for judicial review may be brought against the United States, the agency by its official title, or the appropriate officer. Except to the extent that prior, adequate, and exclusive opportunity for judicial review is provided by law, agency action is subject to judicial review in civil or criminal proceedings for judicial enforcement.

[Codified to 5 U.S.C. 703]

[Source:  Section 703 of the Act of September 6, 1966 (Pub. L. No. 89--554; 80 Stat. 392), effective September 6, 1966, as amended by section 1 of the Act of October 21, 1976 (Pub. L. No. 94--574, 90 Stat. 2721), effective October 21, 1976]

§ 704.  Actions reviewable.

Agency action made reviewable by statute and final agency action for which there is no other adequate remedy in a court are subject to judicial review. A preliminary, procedural, or intermediate agency action or ruling not directly reviewable is subject to review on the review of the final agency action. Except as otherwise expressly required by statute, agency action otherwise final is final for the purposes of this section whether or not there has been presented or determined an application for a declaratory order, for any form of reconsideration, or, unless the agency otherwise requires by rule and provides that the action meanwhile is inoperative, for an appeal to superior agency authority.

[Codified to 5 U.S.C. 704]

[Source:  Section 704 of the Act of September 6, 1966 (Pub. L. No. 89--554; 80 Stat. 392), effective September 6, 1966]

§ 705.  Relief pending review.

When an agency finds that justice so requires, it may postpone the effective date of action taken by it, pending judicial review. On such conditions as may be required and to the extent necessary to prevent irreparable injury, the reviewing court, including the court to which a case may be taken on appeal from or on application for certiorari or other writ to a reviewing court, may issue all necessary and appropriate process to postpone the effective date of an agency action or to preserve status or rights pending conclusion of the review proceedings.

[Codified to 5 U.S.C. 705]

[Source:  Section 705 of the Act of September 6, 1966 (Pub. L. No. 89--554; 80 Stat. 393), effective September 6, 1966]

§ 706.  Scope of review.

To the extent necessary to decision and when presented, the reviewing court shall decide all relevant questions of law, interpret constitutional and statutory provisions, and determine the meaning or applicability of the terms of an agency action. The reviewing court shall--

(1)  compel agency action unlawfully withheld or unreasonably delayed; and

(2)  hold unlawful and set aside agency action, findings, and conclusions found to be--

(A)  arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law;

(B)  contrary to constitutional right, power, privilege, or immunity;

(C)  in excess of statutory jurisdiction, authority, or limitations, or short of statutory right;

(D)  without observance of procedure required by law;

(E)  unsupported by substantial evidence in a case subject to sections 556 and 557 of this title or otherwise reviewed on the record of an agency hearing provided by statute; or

(F)  unwarranted by the facts to the extent that the facts are subject to trial de novo by the reviewing court.

In making the foregoing determinations, the court shall review the whole record or those parts of it cited by a party, and due account shall be taken of the rule of prejudicial error.

[Codified to 5 U.S.C. 706]

[Source:  Section 706 of the Act of September 6, 1966 (Pub. L. No. 89--554; 80 Stat. 393), effective September 6, 1966]

REPORTS OF INFORMATION REGARDING SAFETY AND SOUNDNESS OF DEPOSITORY INSTITUTIONS

(a)  REPORTS TO APPROPRIATE FEDERAL BANKING AGENCIES--

(1)  IN GENERAL

The Attorney General, the Secretary of the Treasury, and the head of any other agency or instrumentality of the United States shall, unless otherwise prohibited by law, disclose to the appropriate Federal banking agency any information that the Attorney General, the Secretary of the Treasury, or such agency head believes raises significant concerns regarding the safety or soundness of any depository institution doing business in the United States.

(2)  EXCEPTIONS--

(A)  Intelligence information

(i)  In general

The director of Central Intelligence shall disclose to the Attorney General or the Secretary of the Treasury any intelligence information that would otherwise be reported to an appropriate Federal banking agency pursuant to paragraph (1). After consultation with the Director of Central Intelligence, the Attorney General or the Secretary of the Treasury, shall disclose the intelligence information to the appropriate Federal banking agency.

(ii)  Procedures for receipt of intelligence information

Each appropriate Federal banking agency, in consultation with the Director of Central Intelligence, shall establish procedures for receipt of intelligence information that are adequate to protect the intelligence information.

(B)  CRIMINAL INVESTIGATIONS, SAFETY OF GOVERNMENT INVESTIGATORS, INFORMANTS, AND WITNESSES--

If the Attorney General, the Secretary of the Treasury or their respective designees determines that the disclosure of information pursuant to paragraph (1) may jeopardize a pending civil investigation or litigation, or a pending criminal investigation or prosecution, may result in serious bodily injury or death to Government employees, informants, witnesses or their respective families, or may disclose sensitive investigative techniques and methods, the Attorney General or the Secretary of the Treasury shall--

(i)  provide the appropriate Federal banking agency a description of the information that is as specific as possible without jeopardizing the investigation, litigation, or prosecution, threatening serious bodily injury or death to Government employees, informants, or witnesses or their respective families, or disclosing sensitive investigation techniques and methods; and

(ii)  permit a full review of the information by the Federal banking agency at a location and under procedures that the Attorney General determines will ensure the effective protection of the information while permitting the Federal banking agency to ensure the safety and soundness of any depository institution.

(C)  GRAND JURY INVESTIGATIONS; CRIMINAL PROCEDURE

Paragraph (1) shall not--

(i)  apply to the receipt of information by an agency or instrumentality in connection with a pending grand jury investigation; or

(ii)  be construed to require disclosure of information prohibited by rule 6 of the Federal Rules of Criminal Procedure.

(b)  PROCEDURES FOR RECEIPT OF DISCLOSURE REPORTS--

(1)  IN GENERAL

Within 90 days after October 28, 1992, each appropriate Federal banking agency shall establish procedures for receipt of a disclosure report by an agency or instrumentality made in accordance with subsection (a)(1) of this section. The procedures established in accordance with this subsection shall ensure adequate protection of information disclosed, including access control and information accountability.

(2)  PROCEDURES RELATED TO EACH DISCLOSURE REPORT--

Upon receipt of a report in accordance with subsection (a)(1) of this section, the appropriate Federal banking agency shall--

(A)  consult with the agency or instrumentality that made the disclosure regarding the adequacy of the procedures established pursuant to paragraph (1), and

(B)  adjust the procedures to ensure adequate protection of the information disclosed.

(c)  EFFECT ON AGENCIES--

This section does not impose an affirmative duty on the Attorney General, the Secretary of the Treasury, or the head of any agency or instrumentality of the United States to collect new or to review existing information.

(d)  DEFINITIONS--

For purposes of this section, the terms "appropriate Federal banking agency" and "depository institution" have the same meanings as in section 1818 of this title.

(e)  REPEALED.

[Codified to 12 U.S.C. 1831m--l]

[Source:  Section 1542 of title XV of the Act of October 28, 1992 (Pub. L. No. 102-550; 106 Stat. 4067), effective October 28, 1992; section 1001(f) of title X of the Act of November 10, 1998 (Pub. L. No. 105-362; 112 Stat. 3292), effective November 10, 1998]

NOTE

Section was enacted as part of the Annuzio--Wylie Anti-Money Laundering Act and also as part of the Housing and Community Development Act of 1992, and not as part of the Federal Deposit Insurance Act which comprises this chapter.

BANK PROTECTION ACT OF 1968

AN ACT

To provide security measures for banks and other financial institutions, and to provide for the appointment of the Federal Savings and Loan Insurance Corporation as receiver.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Bank Protection Act of 1968".

[Codified to 12 U.S.C. 1881 note]

[Source:  Section 1 of the Act of July 7, 1968 (Pub. L. No. 90--389; 82 Stat. 294), effective July 7, 1968]

SEC. 2.  As used in this Act the term "Federal supervisory agency" means the appropriate Federal banking agency, as defined in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)).

[Codified to 12 U.S.C. 1881]

[Source:  Section 2 of the Act of July 7, 1968 (Pub. L. No. 90--389; 82 Stat. 294) effective July 7, 1968; as amended by section 744(h) of title VII of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 439), effective August 9, 1989; section 8 of the Act of October 30, 2004 (Pub. L. No. 108--386; 118 Stat. 2231), effective October 30, 2004; section 356(1) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1547), effective July 21, 2010]

SEC. 3.  (a)  Within six months from the date of this Act, each Federal supervisory agency shall promulgate rules establishing minimum standards with which each bank or savings association must comply with respect to the installation, maintenance, and operation of security devices and procedures, reasonable in cost, to discourage robberies, burglaries, and larcenies and to assist in the identification and apprehension of persons who commit such acts.

(b)  The rules shall establish the time limits within which banks and savings associations shall comply with the standards.

[Codified to 12 U.S.C. 1882]

[Source:  Section 3 of the Act of July 7, 1968 (Pub. L. No. 90--389; 82 Stat. 295), effective July 7, 1968; as amended by section 911(a) of title IX of the Act of August 9, 1989 (Pub. L. No. 101--73; 103 Stat. 478), effective August 9, 1989; section 356(2) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1547), effective July 21, 2010]

SEC. 4.  The Federal supervisory agencies shall consult with

(1)  insurers furnishing insurance protection against losses resulting from robberies, burglaries, and larcenies committed against financial institutions referred to in section 2, and

(2)  State agencies having supervisory or regulatory responsibilities with respect to such insurers to determine the feasibility and desirability of premium rate differentials based on the installation, maintenance, and operation of security devices and procedures. The Federal supervisory agencies shall report to the Congress the results of their consultations pursuant to this section not later than two years after the date of enactment of this Act.

[Codified to 12 U.S.C. 1883]

[Source:  Section 4 of the Act of July 7, 1968 (Pub. L. No. 90--389; 82 Stat. 295), effective July 7, 1968]


SEC. 5.  A bank or savings association which violates a rule promulgated pursuant to this Act shall be subject to a civil penalty which shall not exceed $100 for each day of the violation.

[Codified to 12 U.S.C. 1884]

[Source:  Section 5 of the Act of July 7, 1968 (Pub. L. No. 90--389; 82 Stat. 295), effective July 7, 1968; section 356(3) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1547), effective July 21, 2010]

BANK RECORDS AND FOREIGN TRANSACTIONS

AN ACT

To amend the Federal Deposit Insurance Act to require insured banks to maintain certain records, to require that certain transactions in United States currency be reported to the Department of the Treasury, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

CHAPTER 2. OTHER FINANCIAL INSTITUTIONS

Sec.

121. Congressional findings and purpose.
122. Authority of Secretary with respect to reports on ownership and control.
123. Authority of Secretary with respect to recordkeeping and procedures.
124. Injunctions.
125. Civil penalties.
126. Criminal penalty.
127. Additional criminal penalty in certain cases.
128. Compliance.
129. Administrative procedure.

§ 121.  Congressional findings and purpose

(a)  The Congress finds that certain records maintained by businesses engaged in the functions described in section 123(b) of this Act have a high degree of usefulness in criminal, tax, and regulatory investigations and proceedings. The Congress further finds that the power to require reports of changes in the ownership, control, and managements of types of financial institutions referred to in section 122 of this Act may be necessary for the same purpose.

(b)  It is the purpose of this chapter to require the maintenance of appropriate types of records and the making of appropriate reports by such businesses in the United States where such records or reports have a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings.

[Codified to 12 U.S.C. 1951]

[Source:  Section 121 of title I of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1116), effective November 1, 1971]

§ 122.  Authority of Secretary with respect to reports on ownership and control

Where the Secretary determines that the making of appropriate reports by uninsured banks or uninsured institutions of any type with respect to their ownership, control, and managements and any changes therein has a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, he may by regulation require such banks or institutions to make such reports as he determines in respect of such ownership, control, and managements and changes therein.

[Codified to 12 U.S.C. 1952]

[Source:  Section 122 of title I of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1116), effective November 1, 1971]

§ 123.  Authority of Secretary with respect to recordkeeping and procedures

(a)  REGULATIONS.--If the Secretary determines that the maintenance of appropriate records and procedures by any uninsured bank or uninsured institution, or any person engaging in the business of carrying on in the United States any of the functions referred to in subsection (b), has a high degree of usefulness in criminal, tax, or regulatory investigations or proceedings, and that, given the threat posed to the security of the Nation on and after the terrorist attacks against the United States on September 11, 2001, such records may also have a high degree of usefulness in the conduct of intelligence or counterintelligence activities, including analysis, to protect against international terrorism, he may by regulation require such bank, institution, or person.

(b)  The authority of the Secretary under this section extends to any person engaging in the business of carrying on any of the following functions:

(1)  Issuing or redeeming checks, money orders, travelers' checks, or similar instruments, except as an incident to the conduct of its own nonfinancial business.

(2)  Transferring funds or credits domestically or internationally.

(3)  Operating a currency exchange or otherwise dealing in foreign currencies or credits.

(4)  Operating a credit card system.

(5)  Performing such similar, related, or substitute functions for any of the foregoing or for banking as may be specified by the Secretary in regulations.

(c)  ACCEPTANCE OF AUTOMATED RECORDS.--The Secretary shall permit an uninsured bank or financial institution to retain or maintain records referred to in subsection (a) in electronic or automated form, subject to terms and conditions established by the Secretary.

[Codified to 12 U.S.C. 1953]

[Source:  Section 123 of title I of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1116), effective November 1, 1971; as amended by section 310 of title III of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2221), effective September 23, 1994; section 358(e) of title III of the Act of October 26, 2001 (Pub. L. No. 106--57; 115 Stat. 327), effective October 26, 2001]

§ 124.  Injunctions

Whenever it appears to the Secretary that any person has engaged, is engaged, or is about to engage in any acts or practices constituting a violation of any regulation under this chapter, he may in his discretion bring an action, in the proper district court of the United States or the proper United States court of any territory or other place subject to the jurisdiction of the United States, to enjoin such acts or practices, and upon a proper showing a permanent or temporary injunction or restraining order shall be granted without bond. Upon application of the Secretary, any such court may also issue mandatory injunctions commanding any person to comply with any regulation of the Secretary under this chapter.

[Codified to 12 U.S.C. 1954]

[Source:  Section 124 of title I of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1117), effective November 1, 1971]

§ 125.  Civil penalties

(a)  For each willful violation of any regulation under this chapter, the Secretary may assess upon any person to which the regulation applies, or any person willfully causing a violation of the regulation, and, if such person is a partnership, corporation, or other entity, upon any partner, director, officer, or employee thereof who willfully participates in the violation, a civil penalty not exceeding $1,000.

(b)  In the event of the failure of any person to pay any penalty assessed under this section, a civil action for the recovery thereof may, in the discretion of the Secretary, be brought in the name of the United States.

[Codified to 12 U.S.C. 1955]

[Source:  Section 125 of title I of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1117), effective November 1, 1971; as amended by section 1535(c) of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4067), effective October 28, 1992]

§ 126.  Criminal penalty

Whoever willfully violates any regulation under this chapter shall be fined not more than $1,000 or imprisoned not more than one year, or both.

[Codified to 12 U.S.C. 1956]

[Source:  Section 126 of title I of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1118), effective November 1, 1971]

§ 127.  Additional criminal penalty in certain cases

Whoever willfully violates, or willfully causes a violation of any regulation under this chapter, section 21 of the Federal Deposit Insurance Act, or section 411 of the National Housing Act, where the violation is committed in furtherance of the commission of any violation of Federal law punishable by imprisonment for more than one year, shall be fined not more than $10,000 or imprisoned not more than five years, or both.

[Codified to 12 U.S.C. 1957]

[Source:  Section 127 of title I of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1118), effective November 1, 1971; as amended by section 1535(c) of title XV of the Act of October 28, 1992 (Pub. L. No. 102--550; 106 Stat. 4067), effective October 28, 1992]

§ 128.  Compliance

The Secretary shall have the responsibility to assure compliance with the requirements of this title and may delegate such responsibility to the appropriate bank supervisory agency, or other supervisory agency.

[Codified to 12 U.S.C. 1958]

[Source:  Section 128 of title I of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1118), effective November 1, 1971]

§ 129.  Administrative procedure

The administrative procedure and judicial review provisions of subchapter II of chapter 5 and chapter 7 of title 5, United States Code, shall apply to all proceedings under this chapter, section 21 of the Federal Deposit Insurance Act, and section 411 of the National Housing Act.

[Codified to 12 U.S.C. 1959]

[Source:  Section 129 of title I of the Act of October 26, 1970 (Pub. L. No. 91--508; 84 Stat. 1118), effective November 1, 1971]

NOTE

Implementing Regulations.  The Secretary of the Treasury's regulations issued in implementation of title I of the Act of October 26, 1970 are entitled "Part 103--Financial Recordkeeping and Reporting of Currency and Foreign Transactions".

BANK SERVICE COMPANY ACT

AN ACT

SHORT TITLE AND DEFINITIONS

SECTION 1.

(a)  SHORT TITLE.--This Act may be cited as the "Bank Service Company Act".

(b)  For the purpose of this Act--

(1)  the term "appropriate Federal banking agency" shall have the meaning provided in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q));

(2)  the term "bank service company" means--

(A)  any corporation--

(i)  which is organized to perform services authorized by this Act; 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 Act; 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 3 of the Federal Deposit Insurance Act;

(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 3 of the Federal Deposit Insurance Act) 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 3 of the Federal Deposit Insurance Act.

[Codified to 12 U.S.C. 1861]

[Source: Section 1 of the Act of October 23, 1962 (Pub. L. No. 87--856; 76 Stat. 1132), effective October 23, 1962, as amended by section 709 of title VII of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1541), effective October 15, 1982; and section 32(a) of the Act of January 12, 1983 (Pub. L. No. 97--457; 96 Stat. 2511), effective January 12, 1983; section 2613(a) and (b) of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--476 and 477), effective September 30, 1996; section 602(b)(1) of title VI of the Act of October 13, 2006 (Pub. L. No. 109--351; 120 Stat. 1979), effective October 13, 2006; section 357(1) and (2) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1548), effective July 21, 2010]

AMOUNT OF INVESTMENT IN BANK SERVICE COMPANY

SEC. 2.  Notwithstanding any limitation or prohibition otherwise imposed by any provision of law exclusively relating to banks or savings associations, other than the limitation on the amount of investment by a Federal savings association contained in section 5(c)(4)(B) of the Home Owners' Loan Act, an insured depository institution may invest not more than 10 per centum of paid-in and unimpaired capital and unimpaired surplus in a bank service company. No insured depository institution shall invest more than 5 per centum of its total assets in bank service companies.

[Codified to 12 U.S.C. 1862]

[Source: Section 2 of the Act of October 23, 1962 (Pub. L. No. 87--856; 76 Stat. 1132), effective October 23, 1962, as amended by section 709 of title VII of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1541), effective October 15, 1982; Section 2613(c) of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--477), effective September 30, 1996; sections 602(a) and 602(b)(2) of title VI of the Act of October 13, 2006 (Pub. L. No. 109--351; 120 Stat. 1978 and 1979) effective October 13, 2006]

PERMISSIBLE BANK SERVICE COMPANY ACTIVITIES FOR DEPOSITORY INSTITUTIONS

SEC. 3.  Without regard to the provisions of sections 4 and 5 of this Act, an insured depository institution may invest in a bank service company that performs, and a bank service company may perform, the following services only for depository institutions: check and deposit sorting and posting, computation and posting of interest and other credits and charges, preparation and mailing of checks, statements, notices, and similar items, or any other clerical, bookkeeping, accounting, statistical, or similar functions performed for a depository institution.

[Codified to 12 U.S.C. 1863]

[Source: Section 3 of the Act of October 23, 1962 (Pub. L. No. 87--856; 76 Stat. 1132), effective October 23, 1962, as amended by section 709 of title VII of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1541), effective October 15, 1982; section 602(a) of title VI of the Act of October 13, 2006 (Pub. L. No. 109--351; 120 Stat. 1978), effective October 13, 2006]

PERMISSIBLE BANK SERVICE COMPANY ACTIVITIES FOR OTHER PERSONS

SEC. 4.  (a)  A bank service company may provide to any person any service authorized by this section, except that a bank service company shall not take deposits.

(b)  Except as permissible under subsection (c), (d), or (e) or with the prior approval of the Board under section 5(b) of this Act in accordance with subsection (f) of this section--

(1)  a bank service company shall not perform the services authorized by this section in any State other than that State in which its shareholders or members are located; and

(2)  all insured bank shareholders or members of a bank service company shall be located in the same State.

(c)  A bank service company in which a State bank or S27tate savings association is a shareholder or member shall perform only those services that such State bank or State savings association shareholder or member is authorized to perform under the law of the State in which such State bank or State savings association operates and shall perform such services only at locations in the State in which such State bank or State savings association shareholder or member could be authorized to perform such services.

(d)  A bank service company in which a national bank or federal savings association is a shareholder or member shall perform only those services that such national bank or federal savings association shareholder is authorized to perform under the law of the United States and shall perform such services only at locations in the State at which such national bank or federal savings association shareholder or member could be authorized to perform such services.

(e)  PERFORMANCE WHERE STATE BANK AND NATIONAL BANK ARE SHAREHOLDERS OR MEMBERS.--A bank service company may perform--

(1)  only those services that each depository institution shareholder or member is otherwise authorized to perform under any applicable Federal or State law; and

(2)  such services only at locations in a State in which each such shareholder or member is authorized to perform such services.

(f)  Notwithstanding the other provisions of this section or any other provision of law, other than the provisions of Federal and State branching law regulating the geographic location of banks or savings associations to the extent that those laws are applicable to an activity authorized by this subsection, a bank service company may perform at any geographic location any service, other than deposit taking, that the Board has determined, by regulation, to be permissible for a bank holding company under section 4(c)(8) of the Bank Holding Company Act as of the day before the date of the enactment of the Gramm-Leach-Bliley Act.

[Codified to 12 U.S.C. 1864]

[Source: Section 4 of the Act of October 23, 1962 (Pub. L. No. 87--856; 76 Stat. 1132), effective October 23, 1962, as amended by section 709 of title VII of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1542), effective October 15, 1982; section 32(b)(2) of the Act of January 12, 1983 (Pub. L. No. 97--457; 96 Stat. 2511), effective January 12, 1983; section 2613(e) of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--477), effective September 30, 1996; section 102(b)(2) of title I of the Act of November 12, 1999 (Pub. L. No. 106--102; 113 Stat. 1342), effective March 12, 2000; section 602(b)(3) of title VI of the Act of October 13, 2006 (Pub. L. No. 109--351; 120 Stat. 1979 and 1980), effective October 13, 2006]

PRIOR APPROVAL FOR INVESTMENTS IN BANK SERVICE
COMPANIES

SEC. 5.  (a)  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 4 of this Act without prior notice, as determined by the appropriate Federal banking agency for the insured depository institution.

(b)  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 4(f) of this Act and no bank service company shall perform any activity authorized only under section 4(f) of this Act without the prior approval of the Board.

(c)  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 Act, and possible adverse effects such as undue concentration of resources, unfair or decreased competition, conflicts of interest, or unsafe or unsound banking practices.

(d)  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.

[Codified to 12 U.S.C. 1865]


[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 III of the Act of November 10, 1978 (Pub. L. No. 95--630; 92 Stat. 3677), effective March 10, 1979; and section 709 of title VII of the Act of October 15, 1982 (Pub. L. No. 97--320; 96 Stat. 1542), effective October 15, 1982; section 323 of title III of the Act of September 23, 1994 (Pub. L. No. 103--325; 108 Stat. 2227), effective September 23, 1994; section 2613(f) of title II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--478), 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 NONMEMBERS

SEC. 6.  No bank service company shall unreasonably discriminate in the provision of any services authorized under this 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 that owns stock in the bank or is a member of service company, except that--

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

(2)  a bank service company may refuse to provide services to a nonstockholding or 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 capacity of the service company.

[Codified 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 VII 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 September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--478), effective September 30, 1996]

REGULATION AND EXAMINATION OF BANK SERVICE COMPANIES

SEC. 7.  (a)  A bank service company shall be subject to examination and regulation by the appropriate Federal banking agency of its principal investor to the same extent as its principal investor. The appropriate Federal banking agency of the principal shareholder or principal member of such a bank service company may authorize any other Federal banking agency that supervises any other shareholder or member of the bank service company to make such an examination.

(b)  A bank service company shall be subject to the provisions of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) as if the bank service company were an insured depository institution. For this purpose, the appropriate Federal banking agency shall be the appropriate Federal banking agency of the principal investor of the bank service company.

(c)  Notwithstanding subsection (a) of this section, whenever a depository institution that is regularly examined by an appropriate Federal banking agency, or any subsidiary or affiliate of such a depository institution that is subject to examination by that agency, causes to be performed for itself, by contract or otherwise, any services authorized under this Act, whether on or off its premises--

(1)  such performance shall be subject to regulation and examination by such agency to the same extent as if such services were being performed by the depository institution itself on its own premises, and

(2)  the depository institution shall notify such agency of the existence of the service relationship within thirty days after the making each 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 necessary to enable them to administer and to carry out the purposes of this Act and to prevent evasions hereof.

[Codified 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 VII 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 II of the Act of September 30, 1996 (Pub. L. No. 104--208; 110 Stat. 3009--478), effective September 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; section 357(3) of title III of the Act of July 21, 2010 (Pub. L. No. 111--203; 124 Stat. 1548), effective July 21, 2010]


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