Order Directing Supplemental Briefing on Mootness — PayServices v. Frbsf (9th Cir.)

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UNITED STATES COURT OF APPEALS 
 
FOR THE NINTH CIRCUIT 
 
PAYSERVICES BANK, 
                    Plaintiff - Appellant, 
  v. 
FEDERAL RESERVE BANK OF SAN 
FRANCISCO, 
                    Defendant - Appellee. 
No. 24-2355 
D.C. No. 
1:23-cv-00305-REP 
District of Idaho,  
Boise 
ORDER 
 
Before: TYMKOVICH, M. SMITH, and BUMATAY, Circuit Judges.* 
 
This matter is before the court sua sponte to direct supplemental briefing 
addressing the impact on this appeal of Idaho’s revocation of PayServices’s 
preliminary approval for a state bank charter. 
At oral argument held on Dec. 4, 2024, counsel for the Federal Reserve 
Bank of San Francisco mentioned that Idaho revoked PayServices’s preliminary 
approval for a bank charter.  This appears true.  See Cease and Desist Issued to 
PayServices, IDAHO – DEPARTMENT OF FINANCE, 
https://www.finance.idaho.gov/pressrelease/cease-and-desist-issued-to-
 
* 
The Honorable Timothy M. Tymkovich, United States Circuit Judge for the 
Court of Appeals, 10th Circuit, sitting by designation. 
FILED 
 
DEC 19 2024 
 
MOLLY C. DWYER, CLERK 
U.S. COURT OF APPEALS 
Case: 24-2355, 12/19/2024, DktEntry: 46.1, Page 1 of 3

 
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24-2355 
payservices/ (last visited Dec. 18, 2024).  In full, the Idaho Department of 
Finance’s press release reads: 
The Idaho Department of Finance (Department) issued an 
order to Cease and Desist against PayServices, requiring 
the entity to no longer use the word “bank” in its name in 
the State of Idaho.  Pursuant to Idaho Code § 26-1202, on 
September 12, 2022, the Director of the Department 
granted a waiver to PayServices to use the word “bank” 
in its name in the State of Idaho as the entity had 
received conditional preliminary approval for a bank 
charter from the Department.  As of October 16, 2024, 
PayServices failed to meet the requisite conditions of the 
preliminary approval and therefore the preliminary 
approval, which was the basis for granting a waiver, has 
expired and is now terminated.   
Id.  
 
While counsel for the parties suggested PayServices is in the process of 
appealing this determination, the court is unclear on the status of that appeal. 
Without a state charter, PayServices does not appear to be a “depository 
institution” under the Federal Reserve Act.  12 U.S.C. §§ 461(b)(1)(A)(i), 1813(a), 
1815(a)(1).  If PayServices is not an “eligible depository institution,” then it does 
not appear to meet the minimum criteria it argues compels non-discretionary 
conferral of a master account.  See, e.g., Aplt Br. at 36 (arguing “the Federal 
Reserve Act provides that every eligible depository institution has a right to” a 
master account.) (emphasis added).  And if PayServices is statutorily ineligible for 
a master account, it does not appear to have a remedy. 
Case: 24-2355, 12/19/2024, DktEntry: 46.1, Page 2 of 3

 
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24-2355 
 
No later than January 17, 2025, the parties shall submit simultaneous 
memorandum briefs addressing the following issues: 
1. The status of PayServices’s Idaho state bank charter and any associated 
appellate proceedings. 
 
2. Whether PayServices remains an “eligible depository institution” given 
Idaho’s revocation of its preliminary state bank charter.  Aplt. Br. at 8. 
 
3. If PayServices is no longer an “eligible depository institution,” whether the 
court should abate this case pending the outcome of PayServices’s appeal.  
Id.   
 
4. Assuming Idaho upholds the revocation, why the court should not dismiss 
this case as moot. 
The parties’ memorandum briefs may be no longer than 10 double-spaced 
pages in 13- or 14- point Times New Roman font.  The supplemental briefs need 
not comply with the content requirements of Fed. R. App. P. 28(a), but they should 
be organized in a manner that is helpful to the court.  Hard copies need not be 
submitted. 
 
Case: 24-2355, 12/19/2024, DktEntry: 46.1, Page 3 of 3

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