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Can you summarize 5 ALCA Chapter 20?
BANKS AND FINANCIAL INSTITUTIONS. > ALABAMA CREDIT CARD ACT.
Short Summary
The Alabama Credit Card Act, part of the Code of Alabama, governs the establishment or acquisition of a credit card bank in Alabama. It applies to bank holding companies, bank holding company subsidiaries, domestic lenders, and foreign lenders. The document outlines the conditions that must be satisfied for the establishment or acquisition of a credit card bank, including the payment of a filing fee, minimum capital requirements, and limitations on the bank’s activities. The credit card bank is restricted to engaging in the business of soliciting, processing, and extending credit through credit card accounts. It is prohibited from accepting demand deposits, withdrawable deposits, savings or time deposits of less than $100,000. The credit card bank must operate only a single office in Alabama and must have a minimum number of employees dedicated to its credit card activities. The document also specifies that Alabama banks or domestic lenders are not obligated to establish a credit card bank to issue credit cards and create credit card accounts.
Whom does it apply to?
Bank holding companies, bank holding company subsidiaries, domestic lenders, and foreign lenders
What does it govern?
Supervision, regulation, and examination of credit card banks organized under the laws of Alabama
What are exemptions?
No exemptions mentioned in this document
What are the Penalties?
Cease and desist orders, penalties of up to $10,000 per day for each violation, and divestiture of any interest in the credit card bank by unqualified entities
Jurisdiction
Alabama