Ga. Comp. R. & Regs. R. 80-1-5-.08 - Bank Guaranty of Customer Credit Card Obligations at Another Bank

(1) A bank which does not issue its own credit card but acts as an agent for a correspondent bank may guarantee obligations of established customers in the form of revolving lender credit card accounts at another bank provided the guaranteeing bank establishes a maximum limit for each such account, is not obligated for any amount in excess of such limit, and maintains records updated at least monthly reflecting the current outstanding balance on each account, the approved limit on each account, and the current past due or payment status on each account.

(2) Guarantees outstanding in compliance with the foregoing shall be considered to be in the nature of standby letters of credit and shall be reflected as such on the books and records of the guaranteeing bank. Outstanding guarantees shall be added to customer liabilities in determining compliance with legal loan limitations.

Notes

Ga. Comp. R. & Regs. R. 80-1-5-.08

Ga. L. 1974, pp. 733, 801.

Original Rule entitled "Bank Guaranty of Customer Credit Card Obligations at Another Bank" adopted. F. July 24, 1986; eff. September 1, 1986, as specified by the Agency.