SB321 Summary

• Establishes the Examination of Bank Service Providers Act, authorizing the Superintendent of Banks to examine service providers that supply covered services to state-supervised banks through appointed examiners.

• Defines "service providers" as any entity providing covered services to banks and "serviced banks" as banks, bank holding companies, and their affiliates subject to the superintendent's supervision that use these providers.

• Designates covered services subject to examination as data processing, financial activities (lending, funds transfer, fiduciary and trading activities, deposit taking), and internet-related services (web services, electronic bill payments, mobile applications, software development, and security monitoring).

• Allows the superintendent to accept examination results from other state or federal financial services regulators or Federal Financial Institution Examinations Council (FFIEC) members conducted within the prior 24 months instead of conducting separate examinations to promote regulatory efficiency.

• Permits the superintendent to enter into corrective agreements or issue corrective orders to service providers, share examination reports with serviced bank boards of directors and the FFIEC, and coordinate joint examinations or enforcement actions with other bank supervisory agencies having concurrent jurisdiction.