1. (a) Except as provided in this section, or otherwise expressly provided by State law, a banking institution may not have a bank service corporation.
2. (b) If the Commissioner approves, a banking institution may have a bank service corporation.

3. (c) On application of the banking institution, a bank service corporation shall be approved if:

   1. (1) The Commissioner determines that approval is:

      1. (i) Reasonably required to protect the welfare of the general economy of the State and of the banking institution; and
      2. (ii) Not detrimental to the public interest or to the banking institution;
   2. (2) The approval imposes the same conditions that federal law requires or permits as to a bank service corporation owned exclusively by national banking associations; and
   3. (3) The transaction complies with the rules, regulations, and conditions that the Commissioner adopts.
4. (d) This section does not apply to any bank service corporation organized before July 1, 1984.

Added by Acts 1984, c. 741, § 1, eff. July 1, 1984. Amended by Acts 1996, c. 326, § 2, eff. July 1, 1996; Acts 2011, c. 332, § 4, eff. July 1, 2011.