Rule 80-1-2-.06 - Bank Service Contracts(1) If a state-chartered bank is required to disclose a bank service contract to the Federal Deposit Insurance Corporation or the Board of Governors of the Federal Reserve System, a duplicate of such disclosure will simultaneously be submitted to the Department.(2) A state-chartered bank entering into a bank service contract with a third party service provider must maintain the following information on file at the bank and shall not execute a contract with a third party service provider unless this information has been obtained. (a) A copy of the contract under which the services are provided;(b) A schedule of fees to be charged for each type of service to be performed;(c) Written assurance from the third party service provider that: 1. The records of the bank for which the services are to be performed will be subject to examination and regulation by the department as if the records were maintained by the bank on its own premises,2. The records of the bank in the service provider's possession shall be available to examiners promptly upon receipt of notice; and3. The department shall have the authority to periodically review the internal routine and controls of the servicers to ascertain that the operations are being conducted in a sound manner in keeping with generally accepted banking procedures and requirements;(d) A listing of all reports, and printouts which the third party service provider is offering the bank and the time required, after receipt of notice of examination, to provide those reports or information in readable form to the examiners;(e) Evidence of financial stability, to include a copy of the third party service provider's most recent audit and financial statement, both of which should be aged no more than 18 months; and(f) Biographical information on key officers may be desirable where a provider is not a publicly traded company.(3) A state-chartered bank contracting with a third party service provider must employ good faith efforts to monitor the financial condition of the service provider and must notify the department immediately when it discovers or suspects that the servicer is insolvent or has suffered significant financial losses that threaten the continuing viability of the third party service provider.Ga. Comp. R. & Regs. R. 80-1-2-.06
O.C.G.A. §§ 7-1-61, 7-1-612.
Original Rule entitled "Application for Permission to Perform Indirect Bank Services" adopted. F. Nov. 7, 1995; eff. Nov. 27, 1995.Amended: F. Dec. 18, 2000; eff. Jan. 7, 2001.Amended: Rule retitled "Contracts for Direct or Indirect Bank Services." F. July 28, 2003; eff. August 17, 2003.Amended: New title, "Bank Service Contracts." F. July 7, 2023; eff. July 27, 2023.