Oklahoma § 6-416 - Bank service corporations

§ 6-416. Bank service corporations

A. Definitions.

1. The term "bank services" means those services authorized

under subsections C and D of this section;

2. The term "bank service corporation" means a corporation or

limited liability company organized to perform services, all of the

capital stock of which is owned by one or more depository

institutions, and at least one of which is subject to examination by

the Commissioner;

3. The term "depository institution" means a bank or another

financial institution subject to examination by the Federal Home

Loan Bank Board or the National Credit Union Administration Board;

and

4. The term "invest" includes any advance of funds to a bank

service corporation, 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.

B. Amount of bank investment in service corporations.

1. No limitation or prohibition otherwise imposed by any

provision of this Code exclusively relating to banks shall prevent

any bank from investing not more than ten percent (10%) of its

capital in a bank service corporation; and

2. If stock in a bank service corporation has been held by two

or more banks, or institutions, and one of such banks, or

institutions, ceases to utilize the services of the corporation and

ceases to hold stock in it, and leaves the other as the sole

stockholding bank, or institution, the corporation may nevertheless

continue to function as such and the other bank or institution may

continue to hold stock in it.

C. Services to depository institutions. A bank service

corporation may perform the following services for depository

institutions and for such other persons as the Board shall permit by

regulation: 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, computer, information systems, electronic

communications, bookkeeping, accounting, statistical or similar

functions performed for a depository institution.

Oklahoma Statutes - Title 6. Banks and Trust Companies

D. Services to other persons. A bank service corporation may

provide to any person any of the following services and any other

services as the Banking Board shall permit:

1. Any service which a bank shareholder is authorized to

perform; and

2. Any services which the Federal Reserve Board has determined

by regulation to be permissible for a bank holding company under

Section 4(c)(8) of the Bank Holding Company Act.

E. Regulation and examination of services - Banks and trust

companies. No bank or trust company subject to examination by the

State Banking Commissioner may cause to be performed, by contract or

otherwise, any bank or trust company services for itself, whether on

or off its premises, unless assurances satisfactory to the

Commissioner are furnished to the Commissioner by both the bank or

trust company and the party performing such services that the

performance thereof will be subject to regulation and examination by

the Commissioner to the same extent as if such services were being

performed by the bank or trust company itself on its own premises.

Added by Laws 1965, c. 161, § 416. Amended by Laws 1977, c. 208, §

6, emerg. eff. June 14, 1977; Laws 1983, c. 73, § 9, emerg. eff.

April 29, 1983; Laws 1987, c. 135, § 4, emerg. eff. June 3, 1987;

Laws 1997, c. 111, § 49, eff. July 1, 1997; Laws 2001, c. 338, § 1,

eff. Nov. 1, 2001.