2019 US Code
Title 12 - Banks and Banking
Chapter 18 - Bank Service Companies
Sec. 1862 - Amount of investment in bank service company

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Citation 12 U.S.C. § 1862 (2019)
Section Name §1862. Amount of investment in bank service company
Section Text

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 1464(c)(4)(B) of this title, 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.

Source Credit

(Pub. L. 87–856, §2, Oct. 23, 1962, 76 Stat. 1132; Pub. L. 97–320, title VII, §709, Oct. 15, 1982, 96 Stat. 1541; Pub. L. 104–208, div. A, title II, §2613(c), Sept. 30, 1996, 110 Stat. 3009–477; Pub. L. 109–351, title VI, §602(a), (b)(2), Oct. 13, 2006, 120 Stat. 1978, 1979.)

Editorial Notes AMENDMENTS

2006—Pub. L. 109–351 inserted "or savings associations, other than the limitation on the amount of investment by a Federal savings association contained in section 1464(c)(4)(B) of this title" after "relating to banks" and substituted "insured depository institution" for "insured bank" in two places.

1996—Pub. L. 104–208 substituted "company" for "corporation" in section catchline and "company" and "companies" for "corporation" and "corporations", respectively, in text.

1982—Pub. L. 97–320 substituted provisions relating to the maximum permissible amount of investment in a bank service corporation by an insured bank for provisions which read as follows:

"(a) No limitation or prohibition otherwise imposed by any provision of Federal law exclusively relating to banks shall prevent any two or more banks from investing not more than 10 per centum of the paid-in and unimpaired capital and unimpaired surplus of each of them in a bank service corporation.

"(b) If stock in a bank service corporation has been held by two banks, and one of such banks ceases to utilize the services of the corporation and ceases to hold stock in it, and leaves the other as the sole stockholding bank, the corporation may nevertheless continue to function as such and the other bank may continue to hold stock in it."

Publication Title United States Code, 2018 Edition, Supplement 1, Title 12 - BANKS AND BANKING
Category Bills and Statutes
Collection United States Code
SuDoc Class Number Y 1.2/5:
Contained Within Title 12 - BANKS AND BANKING
CHAPTER 18 - BANK SERVICE COMPANIES
Sec. 1862 - Amount of investment in bank service company
Contains section 1862
Date 2019
Laws In Effect As Of Date January 24, 2020
Positive Law No
Disposition standard
Statutes at Large References 76 Stat. 1132
96 Stat. 1541
110 Stat. 3009-477
120 Stat. 1978
Public Law References Public Law 87-856, Public Law 97-320, Public Law 104-208, Public Law 109-351
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