Provides for the licensure and regulation of merchant acquirer limited purpose banks. (BDR 55-974)

SB 438 creates a new type of regulated financial institution called a "merchant acquirer limited purpose bank" (or "merchant bank") to process payment card transactions for businesses. These banks must be licensed by the Commissioner of Financial Institutions and can only accept deposits from corporations that own them, while being prohibited from traditional banking activities like making loans or acting as fiduciaries. The bill requires these institutions to maintain specific capital reserves, provide letters of credit for receivership costs, and operate only with U.S.-based merchants having physical locations in the United States. It directly affects payment processors seeking a specialized banking license, subjecting them to new regulatory requirements under financial institution laws.