(1) A bank service corporation may perform any of the following services for financial institutions:
(a) Check and deposit sorting and posting;
(b) Computation and posting of interest and other credits and charges;
(c) Preparation and mailing of checks, statements, notices and similar items; or
(d) Any other clerical, bookkeeping, accounting, statistical or similar functions performed for a financial institution.
(2) In addition to the services that may be performed by a bank service corporation for financial institutions under subsection (1) of this section, a bank service corporation:
(a) May perform for any person any service that may lawfully be performed by all shareholders of the bank service corporation, or by any holding company or subsidiary of any such shareholder, except that a bank service corporation shall not take deposits.
(b) With respect to the sale of insurance, shall be subject to the limitations applicable to depository institutions under ORS 746.213 to 746.219. For the purpose of this paragraph, “depository institution” has the meaning given that term in ORS 746.213.
(3) A banking institution may not cause to be performed, by contract or otherwise, any of the services described in subsection (1) of this section for itself, whether on or off its premises, unless assurances satisfactory to the Director of the Department of Consumer and Business Services are furnished to the director by both the banking institution and the person performing the services that the performance of the services will be subject to regulation and examination by the director to the same extent as if the services were performed by the banking institution itself on its own premises.
(4) The director may regulate and examine the performance of the services described in subsection (1) of this section for financial institutions, and may regulate and examine the performance by bank service corporations of the services described in subsection (2) of this section. [1997 c.631 §124; 2003 c.363 §8]Section: Previous 708A.010 708A.115 708A.120 708A.125 708A.130 708A.135 708A.140 708A.145 708A.150 708A.160 708A.165 708A.170 708A.175 708A.180 708A.185 Next
Last modified: August 7, 2008