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Can you summarize GACO 7-9-12?
Georgia Merchant Acquirer Limited Purpose Bank > Limitations on depositors and deposit-taking activities; deposit insurance; self-acquiring activities not permitted.
Short Summary
This legal document, part of the Georgia Code under the Banking and Finance section, pertains to merchant acquirer limited purpose banks. It outlines several limitations on depositors and deposit-taking activities for these banks. Merchant acquirer limited purpose banks can only accept deposits from a corporation that owns a majority of their shares. They are not allowed to attract deposits from the general public or accept ‘brokered deposits’ as defined by the Federal Deposit Insurance Act. These banks can conduct deposit-taking activities only from a single location within the state. They may apply for deposit insurance from the Federal Deposit Insurance Corporation. The document also specifies that the primary business of these banks should be merchant acquiring activities, and they are prohibited from engaging in self-acquiring activities. The document was enacted in 2012 as part of Georgia House Bill 898.
Whom does it apply to?
Merchant acquirer limited purpose banks
What does it govern?
Limitations on depositors and deposit-taking activities; deposit insurance; self-acquiring activities not permitted
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Georgia