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9-1125. Same; unreasonable discrimination in providing services prohibited; exceptions.

9-1125

Chapter 9.--BANKS AND BANKING; TRUST COMPANIES
Article 11.--BANKING CODE; POWERS

      9-1125.   Same; unreasonable discrimination in providing services prohibited; exceptions. No bank service corporation shall unreasonably discriminate in the provision of any services authorized under this act to any depository institution that does not own stock in the service corporation on the basis of the fact that the nonstockholding institution is in competition with an institution that owns stock in the bank service corporation, except:

      (a)   It shall not be considered unreasonable discrimination for a bank service corporation to provide services to a nonstockholding institution only at a price that fully reflects all of the costs of offering those services, including the cost of capital and a reasonable return thereon; and

      (b)   a bank service corporation may refuse to provide services to a nonstockholding institution if comparable services are available from another source at competitive overall costs or if the providing of services would be beyond the practical capacity of the 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 such availability or practical capacity.

      History:   L. 1963, ch. 64, § 3; L. 1984, ch. 48, § 12; July 1.

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