U.S. Code » Title 12 » Chapter CHAPTER 18— BANK SERVICE COMPANIES

12 U.S.C. § 1864

Permissible bank service company activities for other persons

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(a) Services permissible other than taking deposits

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) Services to be performed in State where shareholders or members are locatedExcept as permissible under subsection (c), (d), or (e) or with the prior approval of the Board under section 1865(b) of this title 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) Performance where State bank or savings association is shareholder or member

A bank service company in which a State bank or State 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) Performance where national bank or Federal savings association is shareholder or member

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 or member 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 membersA 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) Geographic location

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 1843(c)(8) of this title as of the day before November 12, 1999.

(Pub. L. 87–856, § 4, Oct. 23, 1962, 76 Stat. 1132; Pub. L. 97–320, title VII, § 709, Oct. 15, 1982, 96 Stat. 1542; Pub. L. 97–457, § 32(b)(2), Jan. 12, 1983, 96 Stat. 2511; Pub. L. 104–208, div. A, title II, § 2613(e), Sept. 30, 1996, 110 Stat. 3009–477; Pub. L. 106–102, title I, § 102(b)(2), Nov. 12, 1999, 113 Stat. 1342; Pub. L. 109–351, title VI, § 602(b)(3), Oct. 13, 2006, 120 Stat. 1979.)Editorial NotesAmendments

2006—Subsec. (b). Pub. L. 109–351, § 602(b)(3)(A), inserted “as permissible under subsection (c), (d), or (e) or” after “Except” in introductory provisions.

Subsec. (c). Pub. L. 109–351, § 602(b)(3)(B), inserted “or State savings association” after “State bank” wherever appearing.

Subsec. (d). Pub. L. 109–351, § 602(b)(3)(C), inserted “or Federal savings association” after “national bank” wherever appearing.

Subsec. (e). Pub. L. 109–351, § 602(b)(3)(D), inserted heading and amended text generally. Prior to amendment, text read as follows: “A bank service company that has both national bank and State bank shareholders or members shall perform only those services that may lawfully be performed by both any shareholder or member of the company which is a national bank under the law of the United States and any shareholder or member of the company which is a State bank under the law of the State in which any such State bank operate and shall perform such services only at locations in the State at which both its State bank and national bank shareholders or members could be authorized to perform such services.”

Subsec. (f). Pub. L. 109–351, § 602(b)(3)(E), inserted “or savings associations” after “location of banks”.

1999—Subsec. (f). Pub. L. 106–102 inserted before period at end “as of the day before November 12, 1999”.

1996—Pub. L. 104–208, § 2613(e)(5), substituted “company” for “corporation” in section catchline.

Subsec. (a). Pub. L. 104–208, § 2613(e)(1), substituted “company” for “corporation” in two places.

Subsec. (b). Pub. L. 104–208, § 2613(e)(1), (2), inserted “or members” after “shareholders” wherever appearing in text and substituted “company” for “corporation” in two places.

Subsecs. (c), (d). Pub. L. 104–208, § 2613(e)(1), (3), inserted “or member” after “shareholder” wherever appearing and substituted “company” for “corporation”.

Subsec. (e). Pub. L. 104–208, § 2613(e)(1), (4), substituted “company” for “corporation”, “any shareholder or member of the company which is a national bank” for “its national bank shareholder or shareholders”, “any shareholder or member of the company which is a State bank” for “its State bank shareholder or shareholders”, and “any such State bank” for “such State bank or banks”, and inserted “or members” after “national bank and State bank shareholders” and after “State bank and national bank shareholders”.

Subsec. (f). Pub. L. 104–208, § 2613(e)(1), substituted “company” for “corporation”.

1983—Subsecs. (d), (e). Pub. L. 97–457 substituted “under the law of the United States” for “under this chapter”.

1982—Pub. L. 97–320 substituted provisions relating to bank service corporation activities for other persons for provisions which read: “No bank service corporation may engage in any activity other than the performance of bank services for banks.”

Statutory Notes and Related SubsidiariesEffective Date of 1999 Amendment

Amendment by Pub. L. 106–102 effective 120 days after Nov. 12, 1999, see section 161 of Pub. L. 106–102, set out as a note under section 24 of this title.

Notes of Decisions
Cited in 23 cases, 1969–1998 · leading case: Clarke v. Sec. Indus. Assn., 479 U.S. 388 (1987).
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Clarke v. Sec. Indus. Assn., 479 U.S. 388 (1987). · cites it 2× “1132 , 12 U. S. C. § 1864 , which forbids bank service corporations to "engage in any activity other than the performance of bank services for banks.”
Nat'l Credit Union Admin. v. First Nat'l Bank & Trust Co., 522 U.S. 479 (1998). · cites it 2× “1132 , 12 U. S. C. § 1864—did not "in terms protect a specified group[,] .”
Ass'n of Data Processing Serv. Organizations, Inc. v. Camp, 397 U.S. 150 (1970). “1132 , 12 U. S. C. § 1864 , which provides: “No bank service corporation may engage in any activity other than the performance of bank services for banks.”
New England Rehab. Hosp. of Hartford, Inc. v. Comm'n on Hospitals & Health Care, 627 A.2d 1257 (Conn. 1993). “If so, then the complainant’s interest was at least “arguably within the zone of interests to be protected or regulated by the statute or constitutional guarantee in question.”
Application of El Rancho Grande, Inc., 437 A.2d 1150 (Pa. 1981). “Stating that the “legal interest” test is more properly concerned with the merits, the Supreme Court reversed, finding that plaintiffs’ competitive interests were “arguably within the zone of interests protected or regulated” by section 4 of the Bank Service Corporation Act, 12…”
Arnold Tours, Inc. v. Camp, 400 U.S. 45 (1970). “1132 , 12 U. S. C. § 1864 . 2 In Data Processing we did not rely on any legislative history showing that Congress desired to protect data processors alone from competition.”
Lewis v. Swan, 716 A.2d 127 (Conn. App. Ct. 1998). “The Supreme Court held that the petitioners had standing to maintain the action, in part because it concluded that the particular petitioner was a competitor within the zone of interests protected by § 4 of the Bank Service Corporation Act of 1962, 12 U.S.C. § 1864 . Assn. of…”
John W. Merriam v. Robert L. Kunzig, Adm'r, Gen. Servs. Admin., 476 F.2d 1233 (3rd Cir. 1973). “12 U.S.C. § 1864 (1970). . 397 U.S. at 156, 90 S.”
Jack Malamud v. Sinclair Oil Corp., 521 F.2d 1142 (6th Cir. 1975). “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.”
Chrysler Corp. v. Fedders Corp., 643 F.2d 1229 (6th Cir. 1981). “That standard requires (1) an allegation that the defendant caused the plaintiff injury in fact, and (2) that the interest which the plaintiff seeks to protect is arguably within the zone of interests protected by the relevant antitrust laws.”
SDK Med. Comput. Servs. Corp. v. Prof'l Operating Mgmt. Grp., Inc., 354 N.E.2d 852 (Mass. 1976). “The Court found in § 4 of the Bank Service Corporation Act of 1962, 12 U.S.C. § 1864 (1970), a legislative design to permit maintenance of such an action; and it is important to add that the plaintiffs were not asserting a private right of action against any national bank, but…”
Crow v. Brown, 332 F. Supp. 382 (N.D. Ga. 1971). “Data Processing held that Section 4 of the Bank Service Corporations Act, 12 U.S.C. § 1864 (1964), which prohibits bank service corporations from engaging in any activity other than the performance of bank services for banks, arguably brought within its zone of interests the…”
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