HARRY HUGHES, Governor

589

Act or its legislative history would preclude
banks from sharing in the ownership of the
corporation with individuals or with corporations
other than banks...." (12 C.F.R. § 7-7390(a))

As to the referenced federal law, see General
Revisor's Note to subtitle.

12-104. CONTINUATION AS SOLE STOCKHOLDING BANK.

A BANKING INSTITUTION MAY REMAIN AS THE ONLY
STOCKHOLDING BANK OF A BANK SERVICE CORPORATION IF, AFTER
THE BANKING INSTITUTION BECAME A STOCKHOLDING BANK:

(1)       THE CAPITAL STOCK OF THE CORPORATION HAD
BEEN OWNED AT LEAST IN PART BY ONE OR MORE OTHER BANKS; AND

(2)       THE OTHER BANKS STOPPED USING THE SERVICES
OF THE CORPORATION AND STOPPED OWNING STOCK IN IT.

REVISOR'S NOTE: This section is new language derived
without substantive change from the second
paragraph of Art. 11, § 62A(b).

In item (1) of this section, the reference to
stock ownership "at least in part" by one or more
other banks is new language added to conform to §
12-103(b)(2) of this subtitle. In this regard,
see revisor's note to that section.

The present statement that the bank service
corporation "may nevertheless continue to
function as such" is deleted as unnecessary. The
definition of "bank service corporation", as
revised in § 12—101 of this subtitle, no longer
requires the ownership of its stock by two or
more banks (that requirement having been
incorporated in the substance of § 12-103 of this
subtitle) and, therefore, there is nothing in
this revised subtitle that would preclude the
continued operation of the bank service
corporation.

The terms "bank" and "bank service corporation"
are defined in § 12-101 of this subtitle.

The term "banking institution" is defined in §
1-101 of this article.

12-10 5. LIMIT ON ACTIVITIES OF CORPORATION.

A BANK SERVICE CORPORATION MAY NOT ENGAGE IN ANY
ACTIVITY OTHER THAN PROVIDING BANK SERVICES.

REVISOR'S NOTE: This section presently appears as Art.
11, § 62A(d).