INVESTMENTS BY INSURED SAVINGS ASSOCIATIONS IN BANK SERVICE COMPANIES AUTHORIZED.

SEC. 602. INVESTMENTS BY INSURED SAVINGS ASSOCIATIONS IN BANK SERVICE COMPANIES AUTHORIZED.(a) In General.—Sections 2 and 3 of the Bank Service Company Act (12 U.S.C. 1862, 1863) are each amended by striking 120 STAT. 1979 “insured bank” each place that term appears and inserting “insured depository institution”.(b) Technical and Conforming Amendments.—(1) Bank service company act definitions.—Section 1(b) of the Bank Service Company Act (12 U.S.C. 1861(b)) is amended—(A) in paragraph (4)—(i) by inserting “, except when such term appears in connection with the term ‘insured depository institution’,” after “means”; and(ii) by striking “Federal Home Loan Bank Board” and inserting “Director of the Office of Thrift Supervision”;(B) by striking paragraph (5) and inserting the following:“(5) Insured depository institution.—The term ‘insured depository institution’ has the same meaning as in section 3(c) of the Federal Deposit Insurance Act;”;(C) by striking “and” at the end of paragraph (7);(D) by striking the period at the end of paragraph (8) and inserting “; and”;(E) by adding at the end the following:“(9) the terms ‘State depository institution’, ‘Federal depository institution’, ‘State savings association’ and ‘Federal savings association’ have the same meanings as in section 3 of the Federal Deposit Insurance Act.”;(F) in paragraph (2), in subparagraphs (A)(ii) and (B)(ii), by striking “insured banks” each place that term appears and inserting “insured depository institutions”; and(G) in paragraph (8)—(i) by striking “insured bank” and inserting “insured depository institution”;(ii) by striking “insured banks” each place that term appears and inserting “insured depository institutions”; and(iii) by striking “the bank’s” and inserting “the depository institution’s”.(2) Amount of investment.—Section 2 of the Bank Service Company Act (12 U.S.C. 1862) is amended by inserting “or savings associations, other than the limitation on the amount of investment by a Federal savings association contained in section 5(c)(4)(B) of the Home Owners’ Loan Act” after “relating to banks”.(3) Location of services.—Section 4 of the Bank Service Company Act (12 U.S.C. 1864) is amended—(A) in subsection (b), by inserting “as permissible under subsection (c), (d), or (e) or” after “Except”;(B) in subsection (c), by inserting “or State savings association” after “State bank” each place that term appears;(C) in subsection (d), by inserting “or Federal savings association” after “national bank” each place that term appears;(D) by striking subsection (e) and inserting the following:120 STAT. 1980 “(e) Performance Where State Bank and National Bank Are Shareholders or Members.—A bank service company may perform—“(1) only those services that each depository institution shareholder or member is otherwise authorized to perform under any applicable Federal or State law; and“(2) such services only at locations in a State in which each such shareholder or member is authorized to perform such services.”; and(E) in subsection (f), by inserting “or savings associations” after “location of banks”.(4) Prior approval of investments.—Section 5 of the Bank Service Company Act (12 U.S.C. 1865) is amended—(A) in subsection (a)—(i) by striking “insured bank” and inserting “insured depository institution”; and(ii) by striking “bank’s”; and(iii) by inserting before the period “for the insured depository institution”;(B) in subsection (b)—(i) by striking “insured bank” and inserting “insured depository institution”;(ii) by inserting “authorized only” after “performs any service”; and(iii) by inserting “authorized only” after “perform any activity”; and(C) in subsection (c)—(i) by striking “the bank or banks” and inserting “any insured depository institution”; and(ii) by striking “capability of the bank” and inserting “capability of the insured depository institution”.(5) Regulation and examination.—Section 7 of the Bank Service Company Act (12 U.S.C. 1867) is amended—(A) in subsection (b), by striking “insured bank” and inserting “insured depository institution”; and(B) in subsection (c)—(i) by striking “a bank” each place that term appears and inserting “a depository institution”; and(ii) by striking “the bank” each place that term appears and inserting “the depository institution”.