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- Alaska Statutes.
- Title 6. Banks and Financial Institutions
- Chapter 5. Alaska Banking Code
- Section 231. Bank Service Corporations.
previous: Section 230
. Investment in Property and Banking Premises.
next: Section 232
. Leasing of Real and Personal Property. [Repealed, Sec. 102 Ch 26 SLA 1993].
AS 06.05.231. Bank Service Corporations.
- (a) A bank may invest not more than 10 percent of its paid-in and unimpaired capital and surplus in a bank service
- (1) the bank submits an application requesting permission to invest in a bank service corporation to the department,
accompanied by complete information concerning feasibility, rates, and competitive organizations, and the department
consents in writing to the investment before it is made; and
- (2) the total investment under this section and AS 06.05.230
(1) does not exceed the combined capital, surplus, and undivided profits.
- (b) A bank may not employ or use the services of a bank service corporation unless the service corporation provides an
adequate bond or insurance against liabilities arising from accounting or other activities performed by the service
corporation affecting bank transactions and the bank gives written notice to the department, before any services are
rendered, specifying the name and address of the bank service corporation and the nature of the activities to be
- (c) The performance of a service for a bank by a bank, person, or organization other than the bank is subject to all laws
and regulations governing performance and examination, in the same manner as if the bank were performing the services.
- (d) In this section,
- (1) "bank service corporation" means a corporation organized to perform bank services for two or more banks, each of which
owns part of the capital stock of the corporation;
- (2) "bank services" means services for banks 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, and
any clerical, bookkeeping, accounting, statistical, or similar functions performed by a bank for its customers.
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