590

LAWS OF MARYLAND

Ch. 33

The only changes are in style.

The term "bank services" is defined in § 12—101
of this subtitle.

12-106. CORPORATION TO PROVIDE SERVICES TO APPLICANTS.

(A)   IS GENERAL.

EXCEPT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION, A
BANK SERVICE CORPORATION SHALL PROVIDE BANK SERVICES TO ANY
BANKING INSTITUTION THAT APPLIES FOR THOSE SERVICES, IF:

(1)   THE CORPORATION PROVIDES THE SAME TYPE OF
BANK SERVICES TO ANY OTHER BANK; AND

(2)   THE APPLICANT IS COMPETITIVE WITH ANY BANK
THAT HOLDS STOCK IN THE CORPORATION.

(B)   WAYS TO PROVIDE SERVICES.

A BANK SERVICE CORPORATION THAT IS REQUIRED TO PROVIDE
BANK SERVICES UNDER THIS SECTION MAY PROVIDE THE SERVICES
BY:

(1)   ISSUING STOCK AND PROVIDING BANK SERVICES TO
THE APPLICANT ON THE SAME BASIS THAT THE CORPORATION ISSUES
STOCK AND PROVIDES BANK SERVICES TO THE OTHER BANKS THAT
HOLD STOCK IN THE CORPORATION; OR

(2)   PROVIDING BANK SERVICES TO THE APPLICANT AT
RATES THAT ARE NO MORE THAN IS NECESSARY TO REFLECT FAIRLY
THE COSTS OF THE BANK SERVICES, INCLUDING THE REASONABLE
COST OF THE CAPITAL PROVIDED TO THE CORPORATION BY ITS
STOCKHOLDERS.

(C)   EXCEPTION.

A BANK SERVICE CORPORATION MAY REFUSE TO PROVIDE BANK
SERVICES UNDER THIS SECTION, IF:

(1)   COMPARABLE BANK SERVICES AT A COMPETITIVE
OVERALL COST ARE AVAILABLE TO THE APPLICANT FROM ANOTHER
SOURCE; OR

(2)   PROVIDING BANK SERVICES TO THE APPLICANT
WOULD BE BEYOND THE PRACTICAL CAPACITY OF THE CORPORATION.

(D)   ENFORCEMENT; BURDEN OF PROOF.

(1) AN APPLICANT MAY SUE A BANK SERVICE
CORPORATION:

(I)   TO COMPEL THE CORPORATION TO PROVIDE
BANK SERVICES TO IT UNDER THIS SECTION; OR

(II)   FOR DAMAGES FOR ANY BREACH OF THE