2013 Indiana Code TITLE 28. FINANCIAL INSTITUTIONS ARTICLE 8. FINANCIAL SERVICES CHAPTER 1. BANK SERVICE CORPORATIONS
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IC 28-8
ARTICLE 8. FINANCIAL SERVICES
IC 28-8-1
Chapter 1. Bank Service Corporations
IC 28-8-1-1
Definitions
Sec. 1. For the purposes of this chapter:
(a) "Department" shall mean the department of financial
institutions for the state of Indiana.
(b) "Bank services" shall mean 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 bank or trust
company.
(c) "Bank service corporation" shall mean a corporation organized
to perform bank services for two or more banks or trust companies,
each of which owns a portion of the capital stock of such
corporation.
(d) "Invest" shall include any advance of funds to a bank service
corporation, whether by the purchase of stock, the making of a loan
or loans, or otherwise; provided, however, payment for rent earned,
goods sold and delivered, or services rendered prior to the making of
such payment shall not be deemed an investment.
(Formerly: Acts 1963, c.359, s.1.) As amended by P.L.263-1985,
SEC.201.
IC 28-8-1-1.5
Investment in corporation by bank or trust company authorized
Sec. 1.5. Notwithstanding any limitation or prohibition otherwise
imposed by any provision of the laws of this state, any bank or trust
company may invest in a bank service corporation upon the same
terms and conditions as are provided by Section 709 of the Garn-St.
Germain Depository Institutions Act of 1982 (Public Law 97-320; 96
Stat. 1469) for federally insured banks, and any such bank service
corporation may perform the same functions, subject to the same
limitations and restrictions, as are prescribed by the Garn-St.
Germain Depository Institutions Act of 1982.
As added by P.L.267-1983, SEC.2.
IC 28-8-1-2
Authority of two or more banks and trust companies to invest
Sec. 2. Any two (2) or more banks or trust companies may invest
in a bank service corporation an amount not to exceed ten percent
(10%) of the capital and surplus of each of them as defined in
IC 28-1-1.
(Formerly: Acts 1963, c.359, s.2.) As amended by P.L.263-1985,
SEC.202; P.L.213-2007, SEC.75; P.L.217-2007, SEC.73.
IC 28-8-1-3
Continuation with single bank or trust company as sole
stockholders
Sec. 3. In the event the stock of a bank service corporation is held
by two (2) banks or trust companies, one (1) of the banks or trust
companies ceases to use the services of the bank service corporation
and ceases to hold stock in such corporation thereby leaving the other
bank or trust company the sole stockholder in such corporation, the
bank service corporation may continue to function as such and the
remaining bank may continue to hold stock in such corporation.
(Formerly: Acts 1963, c.359, s.3.)
IC 28-8-1-4
Application of competitive nonmember bank or trust company for
service; duties
Sec. 4. Whenever any bank or trust company requests bank
service from a bank service corporation which supplies the same type
of bank service to other banks or trust companies and the applying
bank or trust company is competitive with any bank or trust company
which holds stock in the bank service corporation, such corporation
must agree to render such services, and either
(a) issue stock to the applying bank or trust company and furnish
bank services to such applying bank or trust company on the same
basis as to other banks or trust companies holding stock in the bank
service corporation, or
(b) furnish bank services to the applying bank or trust company at
rates no higher than necessary to reflect fairly the cost of such
services including the reasonable cost of the capital provided to such
corporation by its stockholders, at the option of the banking service
corporation, unless comparable services at a competitive overall cost
are available to the applying bank or trust company from another
source, or unless the furnishing of the services sought by the
applying bank or trust company would be beyond the practical
capacity of the bank service corporation.
In any action or proceeding to enforce the duty imposed by this
section, or for damages for the breach thereof, the burden shall be
upon the bank service corporation to prove the availability of bank
services from another source.
(Formerly: Acts 1963, c.359, s.4.)
IC 28-8-1-5
Regulation and examination
Sec. 5. No bank or trust company subject to examination by the
department may cause to be performed, by contract or otherwise, any
bank services for itself, either on or off its premises, until such time
as assurances are furnished to the department by the bank or trust
company and the bank service corporation performing such bank
services that the performance thereof will be subject to regulation
and examination by the department to the same extent as if such bank
services were being performed by the bank or trust company on its
own premises.
(Formerly: Acts 1963, c.359, s.5.)
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