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Can you summarize WVCO Chapter 31A, Article 5?
BANKS AND BANKING. > BANK SERVICE CORPORATIONS AND BANK SERVICES.
Short Summary
This legal document governs bank services, bank service corporations, and investments in bank service corporations. It defines ‘bank services’ as various functions performed for a state bank or a national banking association, as well as the sale of related services and products. ‘Bank service corporation’ refers to a corporation that performs bank services for multiple banking institutions, with each institution owning part of the corporation’s capital stock. The document allows state banks to invest up to ten percent of their paid-in and unimpaired capital and unimpaired surplus in a bank service corporation. If a state bank becomes the sole stockholder of a bank service corporation, the corporation can continue to function and the state bank can continue to hold stock. The document also governs the extension of bank services to competing banking institutions and associations. When an applying bank competes with a stockholding bank that holds stock in a bank service corporation, the corporation must offer the same type of bank services to the applying bank. The corporation can either issue stock to the applying bank and provide services on the same basis as stockholding banks, or provide services to the applying bank at rates reflecting the cost of such services. The burden of proof lies with the bank service corporation to show the availability of comparable services or practical capacity limitations. The document prohibits bank service corporations from engaging in any activity other than the performance of bank services. It also requires state banks to obtain written assurances from both the state bank and the party performing bank services that the performance will be subject to regulation and examination by the commissioner of banking and any federal supervisory agency. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
State banks, national banking associations, and bank service corporations
What does it govern?
Bank services, bank service corporations, and investments in bank service corporations
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
West Virginia