WVC 31 A-
CHAPTER 31A. BANKS AND BANKING.
WVC 31 A- 5 -
ARTICLE 5. BANK SERVICE CORPORATIONS AND BANK SERVICES.
WVC 31 A- 5 - 1
For the purposes of this article:"bank services," means
services such as check and deposit sorting and posting,
computation and posting of interest and other credits and
charges, preparation and mailing of checks, statements, notices
and similar items, or any other clerical, bookkeeping,
accounting, statistical, or similar functions performed for a
state bank or a national banking association and the sale of the
services, use and products of machines and equipment as permitted
by section thirty-seven, article four of this chapter;"bank
service corporation" means a corporation organized under the laws
of this state to perform bank services for two or more banking
institutions, each of which owns part of the capital stock of
such corporation, and the sale of the services, use and products
of machines and equipment as permitted by section thirty-seven,
article four of this chapter; and "invest" means any advance of
funds to a bank service corporation, whether by the purchase of
stock, the making of a loan, or otherwise, except the payment for
rent earned, goods sold and delivered, or services rendered prior
to the making of such payment.
WVC 31 A- 5 - 2
§31A-5-2. Authority of state banks to invest in bank service
Notwithstanding any other provision of law, any state bank
is hereby authorized to invest not more than ten percent of its
paid-in and unimpaired capital and unimpaired surplus in a bank
service corporation. If stock in a bank service corporation has
been held by two state banks, or by one such bank and one
national banking association and one state bank or such
association ceases to utilize the services of the corporation and
ceases to hold stock in it, and leaves a state bank as the sole
stockholder, the bank service corporation may nevertheless
continue to function as such and such state bank may continue to
hold stock in such corporation.
WVC 31 A- 5 - 3
§31A-5-3. Extension of bank services to competing banking
institutions and associations.
Whenever a state bank or a national banking association
applies for bank services for itself (hereinafter referred to in
this section as "an applying bank") from a bank service
corporation which supplies the same type of bank services to one
or more other state banks or national banking associations, or
both, and the applying bank is competitive with any state bank or
national banking association which holds stock in such
corporation (referred to in this section as a "stockholding
bank"), the corporation must offer to supply such services by
(a) Issuing stock to the applying bank and furnishing bank
services to it on the same basis as to the stockholding banks, or
(b) Furnishing bank services to the applying bank at rates
no higher than necessary to reflect fairly the cost of such
services, including the reasonable cost of the capital provided
to the corporation by the stockholding banks, at the
corporation's option, unless comparable services at competitive
overall costs are available to the applying bank from another
source, or unless the furnishing of the services sought by the
applying bank would be beyond the practical capacity of the bank
service corporation. In any action or proceeding to enforce the
duty imposed by this section or for damages for the breach
thereof, the burden shall be upon the bank service corporation to
show the availability of such comparable services or that the furnishing of such services would be beyond the practical
capacity of the bank service corporation.
WVC 31 A- 5 - 4
§31A-5-4. Bank service corporation activities limited.
No bank service corporation may engage in any activity other
than the performance of bank services.
WVC 31 A- 5 - 5
§31A-5-5. Regulation and examination of performance of bank
No state bank may cause to be performed, by contract or
otherwise, any bank services for itself, whether on or off its
premises, unless written assurances satisfactory to the
commissioner of banking are furnished to him by both the state
bank and the party performing such services that the performance
thereof will be subject to regulation and examination by the
commissioner and any federal supervisory agency to the same
extent as if such services were being performed by the state bank
on its own premises.
Note: WV Code updated with legislation passed through the 2016 Regular Session
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