AUTHORIZING BANK SERVICE COMPANIES TO ORGANIZE AS LIMITED LIABILITY COMPANIES.

SEC. 2613. AUTHORIZING BANK SERVICE COMPANIES TO ORGANIZE AS LIMITED LIABILITY COMPANIES. (a) Amendment to Short Title.— Section 1 of the Bank Service Corporation Act (12 U.S.C. 1861(a)) is amended by striking subsection (a) and inserting the following new subsection: “(a) Short Title.— This Act may be cited as the ‘Bank Service Company Act’.”; (b) Amendments to Definitions.— Section 1(b) of the Bank Service Corporation Act (12 U.S.C. 1861(b)) is amended— (1) by striking paragraph (2) and inserting the following new paragraph: “(2) the term ‘bank service company’ means— “(A) any corporation— “(i) which is organized to perform services authorized by this Act; and 110 STAT. 3009–477 “(ii) all of the capital stock of which is owned by 1 or more insured banks; and “(B) any limited liability company— “(i) which is organized to perform services authorized by this Act; and “(ii) all of the members of which are 1 or more insured banks.”; (2) in paragraph (6)— (A) by striking “corporation” and inserting “company”; and (B) by striking “and” after the semicolon; (3) by redesignating paragraph (7) as paragraph (8) and inserting after paragraph (6) the following new paragraph: “(7) the term ‘limited liability company’ means any company, partnership, trust, or similar business entity organized under the law of a State (as defined in section 3 of the Federal Deposit Insurance Act) which provides that a member or manager of such company is not personally liable for a debt, obligation, or liability of the company solely by reason of being, or acting as, a member or manager of such company; and”; and (4) in paragraph (8) (as so redesignated)— (A) by striking “corporation” each place such term appears and inserting “company”; and (B) by striking “capital stock” and inserting “equity”, (c) Amendments to Section 2.— Section 2 of the Bank Service Corporation Act (12 U.S.C. 1862) is amended— (1) by striking “corporation” and inserting “company”; (2) by striking “corporations” and inserting “companies”; and (3) in the heading for such section, by striking “corporation” and inserting “company”. (d) Amendments to Section 3.— Section 3 of the Bank Service Corporation Act (12 U.S.C. 1863) is amended— (1) by striking “corporation” each place such term appears and inserting “company”; and (2) in the heading for such section, by striking “corporation” and inserting “company”. (e) Amendments to Section 4.— Section 4 of the Bank Service Corporation Act (12 U.S.C. 1864) is amended— (1) by striking “corporation” each place such term appears and inserting “company”; (2) in subsection (b), by inserting “or members” after “share-holders” each place such term appears; (3) in subsections (c) and (d), by inserting “or member” after “shareholder” each place such term appears; (4) in subsection (e)— (A) by inserting “or members” after “national bank and State bank shareholders”; (B) by striking “its national bank shareholder or share-holders” and inserting “any shareholder or member of the company which is a national bank”; (C) by striking “its State bank shareholder or share-holders” and inserting “any shareholder or member of the company which is a State bank”; (D) by striking “such State bank or banks” and inserting “any such State bank”; and 110 STAT. 3009–478 (E) by inserting “or members” after “State bank and national bank shareholders”; and (5) in the heading for such section, by striking “corporation” and inserting “company”. (f) Amendments to Section 5.— Section 5 of the Bank Service Corporation Act (12 U.S.C. 1865) is amended— (1) by striking “corporation” each place such term appears and inserting “company”; and (2) in the heading for such section, by striking “corporations” and inserting “companies”. (g) Amendments to Section 6.— Section 6 of the Bank Service Corporation Act (12 U.S.C. 1866) is amended— (1) by striking “corporation” each place such term appears and inserting “company”; (2) by inserting “or is not a member of’ after “does not own stock in”; (3) by striking “the nonstockholding institution” and inserting “such depository institution”; (4) by inserting “or is a member of” after “that owns stock in”; (5) in paragraphs (1) and (2), by inserting “or nonmember” after “nonstockholding”; and (6) in the heading for such section by inserting “or non-members” after “nonstockholders”. (h) Amendments to Section 7.— Section 7 of the Bank Service Corporation Act (12 U.S.C. 1867) is amended— (1) by striking “corporation” each place such term appears and inserting “company”; (2) in subsection (a)— (A) by inserting “or principal member” after “principal shareholder”; and (B) by inserting “or member” after “other shareholder”; and (3) in the heading for such section, by striking “corporations” and inserting “companies”.