Risks And Rewards Of Ga.’s MALP Bank Charter

Law360, New York (June 28, 2012, 2:03 PM EDT) -- On March 28, 2012, Georgia Governor Nathan Deal signed into law the Georgia Merchant Acquirer Limited Purpose Bank Act, which creates a new state charter for payment card merchant processors. The act allows entities to be chartered as “merchant acquirer limited purpose banks” (“MALP banks”), effectively allowing them to participate in payment card networks without having to engage in bank identification number (BIN) rental arrangements or be classified as a “bank.”

Under the act, MALP banks are eligible for federal deposit insurance coverage provided by the...
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