HARRY HUGHES, Governor                                     3445

[12-102.

A banking institution may not permit any bank services to be
performed for it, whether by contract or otherwise, unless the
banking institution and the person performing the bank services
give the Bank Commissioner satisfactory assurances that the
performance of the bank services will be subject to regulation
and examination by the Bank Commissioner to the same extent as if
the banking institution itself were performing the bank
services.]

[12-103.

(a)  In this section:

(1)  "Investment" includes any advance of funds,
whether by buying stock, making a loan, or otherwise; and

(2)  "Investment" does not include any payment for
rent earned, goods sold and delivered, or services performed
before the payment is made.

(b)  Notwithstanding the provisions of Title 5, Subtitle 4
of this article or of any other law, a banking institution may
invest in a bank service corporation if:

(1)  The total investment in the corporation by each
bank does not exceed 10 percent of the bank's unimpaired capital
and surplus; and

(2)  Except as provided in § 12-104 of this subtitle,
the capital stock of the corporation will be owned at least in
part by two or more banks.]

[12-104.

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.]

[12-105.

A bank service corporation may not engage in any activity
other than providing bank services.]

[12-106.

(a) 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: