Legal Alert: Georgia Department of Banking and Finance Publishes Proposed Regulations Regarding Chartering of Merchant Acquirer Limited Purpose Banks

On July 31, 2013, the Georgia Department of Banking and Finance published its first set of proposed regulations to implement the Georgia Merchant Acquirer Limited Purpose Bank Act. The Act, which became effective on March 28, 2012, creates a new state charter for “merchant acquirer limited purpose banks” (MALPBs). These new banks are eligible for (but not required to obtain) FDIC insurance, thereby facilitating their membership in payment card networks (e.g., Visa, MasterCard). It is anticipated that MALPBs will be utilized by payment processors and other participants in the payments industry to avoid the necessity of establishing separate sponsoring arrangements with Visa/MasterCard member banks, or to supplement sponsor bank arrangements.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Topics:  Banks, Credit Cards, FDIC, MasterCard, Payment Processors, Proposed Regulation, Sponsoring Entities, Visas

Published In: Finance & Banking Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Sutherland Asbill & Brennan LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »