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Can you summarize GARR Subject 80-12-11?
MERCHANT ACQUIRER LIMITED PURPOSE BANKS > HOLDING COMPANY
Short Summary
The provided legal document content covers the rules and regulations related to holding companies and Merchant Acquirer Limited Purpose Banks (MALPBs) in the state of Georgia. It requires holding companies to provide certain books and records to the Department of Banking and Finance, including examination reports, reports submitted to relevant agencies, and orders issued by regulatory authorities. Failure to provide the required documentation may result in enforcement action. The document also outlines the approval process for new appointments or changes of directors, executive officers, principal shareholders, or control persons of a holding company, requiring prior written approval from the Department. The Department may request additional information or documents to assess the character and fitness of the individuals. The document further governs the acquisition of ownership or control of voting shares of an MALPB by a holding company, setting restrictions on the percentage of shares that can be acquired without written approval from the Department. It also limits the number of MALPBs a holding company can control within a five-year period. Various exemptions are provided, including acquisitions through formation or chartering in Georgia, acquisitions of less than 25% of voting shares of a public holding company for investment purposes, and internal corporate reorganizations of holding companies involving subsidiaries. The document emphasizes that a holding company should serve as a source of strength to its MALPB subsidiary and may be required to provide a capital maintenance guaranty upon request by the Department.
Whom does it apply to?
Holding companies, Merchant Acquirer Limited Purpose Banks (MALPBs), directors, executive officers, principal shareholders, control persons
What does it govern?
Acquisition of ownership or control of voting shares of a Merchant Acquirer Limited Purpose Bank (MALPB) by a holding company, appointment or change of director, executive officer, principal shareholder, or control person of a holding company
What are exemptions?
Principal shareholders, executive officers, directors, and control persons of a holding company that is a public company, acquisitions through formation or chartering in Georgia, acquisitions of less than 25% of voting shares of a public holding company for investment purposes, internal corporate reorganizations of holding companies involving subsidiaries
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Georgia