Department of Banking and Finance bulletin, Dec. 31, 2000

. . . .BULLETIN. . . .BULLETIN. . . .BULLETIN. . . .BULLETIN. . . .

STATE OF GEORGIA
DEPARTMENT OF BANKING AND FINANCE
STEVEN D. BRIDGES, COMMISSIONER

Phone: (770) 986-1633

Fax: (770) 986-1655

Internet Address: http://www.state.ga.us/dbf/
December 31, 2000
The following is a summary of official action taken on applications by State Financial Institutions under Chapter 7-1 of the Code of Georgia and petitions for Certificate of Incorporation of Financial Institutions and other matters of interest during the month of December 2000.
IN THIS ISSUE: REMINDERS TO STATE CHARTERED CREDIT UNIONS PERMITTING REQUIRMENTS FOR THE LARGE SCALE USE OF WATER IN GEORGIA BANK DIRECTOR FINANCIAL STATEMENTS (Form 19-6 and 19-6a)
APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION Sweetwater Bank & Trust NW Cnr of Florence Road & HWY 278 Powder Springs, GA 30127 Cobb County

CAPITALIZATION $ 7,500,000

APPROVAL DATE Pending

BEGIN BUSINESS DATE

Guardian Bank 701 Wildwood Plantation Drive Valdosta, GA 31602 Lowndes County

$ 4,500,000

12-07-2000

FINANCIAL INSTITUTION CONVERSIONS

PREVIOUS NAME Douglas Federal Bank, A Federal Savings Bank

CONVERTED TO Douglas Federal Bank Douglasville Douglas County

APPROVAL DATE Pending

EFFECTIVE DATE

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION SunTrust Bank Atlanta

BRANCH OFFICE Spradlin Farm Branch Office 15 Spradlin Farm Drive Christianburg, VA 24073 Montgomery County

APPROVAL BEGIN BUSINESS

DATE

DATE

10-16-2000

12-04-2000

SunTrust Bank Atlanta

Cloverly Safeway Branch Office 15411 New Hampshire Avenue Cloverly, MD 20904 Montgomery County

09-21-2000

12-06-2000

SunTrust Bank Atlanta

Houston Square In-Store Branch Office 207 Russell Parkway Warner Robins, GA 31088 Houston County

12-11-2000

11-16-2000

State Bank of Cochran Cochran

Dexter Branch Office 109 E. Main Street Dexter, GA 31019 Laurens County

12-11-2000

State Bank of Cochran Cochran

Dublin Branch Office 201 N. Jefferson Street

12-11-2000

Dublin, GA 31021 Laurens County

Global Commerce Bank Doraville

Plaza Fiesta Branch Office 4166 Buford Highway Doraville, GA 30345 DeKalb County

Bank of Ellaville Ellaville

Butler Branch Office (Trade Name: Central Bank) 108 South Broad Street Butler, GA 31006 Taylor County

Crescent Bank and Trust Company Jasper

Cumming Branch Office 422 Canton Road Cumming, GA 30040 Forsyth County

Heritage Bank Jonesboro

Fayetteville Towne Center Branch Office 855 Highway 85 South Fayetteville, GA 30214 Fayette County

Commercial Bank & Trust Company of Troup County LaGrange

Vernon Wood Drive Branch Office 101 Vernon Wood Drive LaGrange, GA 30240 Troup County

The United Banking Company Nashville

Homerville Branch Office (Trade Name: Clinch Banking Co.) 978 Valdosta Highway Homerville, GA 31634 Clinch County

Guardian Bank Valdosta

North Ashley Branch Office 1906 North Ashley Street Valdosta, GA 31602 Lowndes County

The Park Avenue Bank Valdosta

Henry County Branch Office 1400 S. Cedar Street of Racetrack Road McDonough, GA 30253 Henry County

12-06-2000 09-20-2000 07-18-2000 12-18-2000 10-26-2000 01-25-2000 12-07-2000 09-05-2000

12-01-2000 12-11-2000 12-05-2000 12-14-2000
11-27-2000

Citizens Bank Vienna
Citizens Bank Vienna
Citizens Bank Vienna
Citizens Bank Vienna

Buena Vista Branch Office 302 West Side Broad Buena Vista, GA 31803 Marion County
Cusseta Branch Office One Courthouse Square Cusseta, GA 31805 Chattahoochee County
Montezuma Branch Office 115 North Dooley Street Montezuma, GA 31063 Macon County
Oglethorpe Branch Office 201 Macon Street Oglethorpe, GA 31068 Macon County

12-18-2000 12-18-2000 12-18-2000 12-18-2000

APPLICATIONS TO CHANGE LOCATION

FINANCIAL INSTITUTION

CHANGE LOCATION OF

Community First Bank

From: 3357 Jimmy Lee Smith Parkway

Carrollton

Hiram 30141

Paulding County

To: 5071 Jimmy Lee Smith Parkway

Hiram 30141

Paulding County

APPROVAL DATE EFFECTIVE DATE 12-20-2000

APPLICATIONS FOR RESERVATION OF A NAME

PROPOSED NAME Douglas Federal Bank
Guardian Bank
New South Bank

COUNTY Douglas County
Lowndes County
Bibb County

APPLICANT Mr. Richard T. Hills Attorney at Law Womble Carlyle Sandridge & Rice 1201 W. Peachtree St., N.E. Atlanta, GA 30309
Mr. Ansel P. Clark President - Guardian Bank 701 Wildwood Plantation Drive Valdosta, GA 31602
Mr. Peter R. Cates Attorney Miller & Towson, LLP 509 Forest Hill Road Macon, GA 31209-7126

FINANCIAL INSTITUTION (SURVIVOR) Main Street Bank Covington
Main Street Bank Covington

FINANCIAL INSTITUTION MERGERS
MERGED INSTITUTION The Westside Bank & Trust Company Kennesaw
The Eastside Bank & Trust Company Snellville

Main Street Bank Covington

Community Bank of Georgia Tucker

Main Street Bank Covington

Walton Bank & Trust Co. Monroe

First Flag Bank LaGrange
FLAG Bank (f/k/a Citizens Bank) Vienna

Thomaston Federal Savings Bank Thomaston
First Flag Bank LaGrange

APPROVAL DATE
12-22-2000

EFFECTIVE DATE
12-29-2000

12-22-2000

12-29-2000

12-22-2000

12-29-2000

Pending

09-19-2000

12-30-2000

12-21-2000

12-31-2000

APPLICATIONS TO BECOME A BANK HOLDING COMPANY AND/OR TO ACQUIRE VOTING STOCK OF A FINANCIAL INSTITUTION

BANK HOLDING COMPANY Summit Bank Corporation Atlanta, GA
Bank of America Corporation Charlotte, NC
Capital City Bank Group, Inc. Tallahassee, FL
PAB Bankshares, Inc. Valdosta, GA

ACQUISITIONS ONLY
TO ACQUIRE Global Commerce Bank Doraville, GA

APPROVAL DATE Pending

Bank of America Georgia, National Association Atlanta, GA
First Bankshares of West Point, Inc. West Point, GA
Friendship Community Bank Ocala, FL

Pending 12-08-2000 12-06-2000

CHECK CASHER LICENSES ISSUED

CITY Atlanta Atlanta Dalton Atlanta Rome Doraville

APPLICANT NAME Bhagat Investment Inc. Discount Check Cashing L.L.C. Four Way Group, Inc. Lee, Jin Dong Tax Mart, Inc. Zaman & Awan, Inc.

TRADE NAME Bains Bottle Shop Discount Check Cashing Four Way Market Sunshine Laundry & Check Cashing Cash Today Texaco Food Mart

* =Exempt (O.C.G.A. 7-1-709)

REMINDERS TO STATE CHARTERED CREDIT UNIONS
Form 990 Tax Filing
The Department informed all State Chartered Credit Unions early in 2000 that we would not be making a consolidated Tax Filing for the Year 2000 and thereafter. This is a reminder to all credit unions that they need to make plans to make this filing individually and obtain the necessary forms from the Internal Revenue Service to make this filing. The consolidated filings made for the two previous tax years are available on the Department's Web site at www.state.ga.us./dbf/ Look under the forms and applications menu, credit unions, for copies of these documents.
If you have any questions regarding these issues, please feel free to Contact Deputy Commissioner for Supervision George A. Reynolds (770) 986-1629.
Eighteen Month Schedule and Interim Financial Reporting for March and September
The Commissioner issued a memo dated August 29, 2000, outlining the adoption of an 18 month credit union examination program for well-managed and well-capitalized credit unions. Part of that program includes having state chartered credit unions forward interim financial information for the March and September quarters on the credit union's own forms. This requirement will be effective for the quarter ended March 31, 2001. The credit union should plan on forwarding a copy of their financial statement, operating statement and summary of delinquent accounts on their own forms to their respective

district office within 30 days of quarter-end. Credit Unions over $50,000,000 in total assets, which are required to file 5300 reports, will meet this requirement through their 5300 filing. Please refer to your Memo dated as indicated above for additional information. If you have additional questions you may contact Supervisory Manager Wayne Orr (770) 986-1637 or Deputy Commissioner for Supervision George A. Reynolds (770) 986-1629.
PERMITTING REQUIRMENTS FOR THE LARGE SCALE USE OF WATER IN GEORGIA
Financial institutions need to be aware that their customers that use significant amounts of groundwater in commercial or agricultural operations are required by Georgia Statute to have a Permit from the Environmental Protection Division of the Department of Natural Resources, in accordance with Georgia Law.
1. Any Commercial or Agricultural user of Water that uses:
100,000 Gallons or more of water on any one day of the year is required to have a permit, authorizing the use of the water. These requirements do not apply to personal residential usage.
2. Many users, particularly Ag users are operating without permits. These users are subject to sanctions and are subject
to having their rights to access water for irrigation cut off in the event of a water emergency. Others may have had a permit but have lost the permit or the permit may have been misplaced during the transfer of ownership of the property.
3. Surface Water usage is addressed in OCGA 12-5-31.
It prohibits any withdrawal or diversion of surface water of greater than 100,000 Gallons per day by any person, without a permit from the Environmental Protection Division of DNR.
Those individuals for permits that were using surface water for farm use prior to July 1, 1988, may have certain statutory requirements waived, relative to demonstrating priority in the event of competing claims for water usage.
Ability to withdraw surface water can be impacted in an emergency period of water shortage. Human consumption has first priority for usage, farm usage has secondary priority, then commercial and industrial usage.
4. Ground Water usage is addressed in 12-5-90 through 12-5-107
Prohibits withdrawal or diversion of ground water of greater than 100,000 Gallons per day by any person, without first obtaining a permit form the Environmental Protection Division of DNR.
Any person applying for a permit or a modification of a permit must submit a detailed water usage plan.
Statute differentiates between consumptive and nonconsumptive use. Most Commercial/Ag use would be consumptive. (Nonconsumptive would not impact overall water table or water pressure in the water system)
Permits may be granted for not less than 10 years and not more than 50 years. Longer-term permits (over 25 years) require the Director of EDP to consider the long-term multiple usage requirements of the State and Region.
State can require the installation of water meter or similar devices to determine water usage.
State has the right to lawfully inspect ground water usage pursuant to these Code sections on Public or Private property.
According to the information we have been provided, the ability to receive new permits in certain parts of the State may be significantly limited. For instance, new agricultural permits for use of the aquifer in Southwest Georgia have been significantly limited according to the DNR.
There are provisions for an emergency order and hearing process, to appeal the DNR not granting a permit or to appeal terms imposed by the permit. During this process, Farmers can continue to utilize water resources, until the appeal process is

completed.
There are civil penalties of $1,000 plus $500 per day for intentional or willful noncompliance. Also criminal penalties (a misdemeanor)
Our examination staff has been informed of these requirements and will be looking for evidence of these permits for borrowers that are large-scale users of ground water. Bankers need to inform themselves regarding these requirements and review their loan portfolios to identify borrowers that would be impacted by these requirements. Examiners will be citing technical exceptions for borrowers that appear subject to these provisions and which lack a copy of the required permit. The lack of proper permitting could additionally impact land collateral values and could impact the creditworthiness and collectibility of certain loans. For questions regarding the statutory requirements for permitting, contact the Environmental Protection Division of the Department of Natural Resources. For questions regarding the examination or supervisory impact of these requirements on financial institutions, contact Deputy Commissioner George A. Reynolds at (770) 986-1629.
BANK DIRECTOR FINANCIAL STATEMENTS (Form 19-6 and 19-6a)
Historically, the Department has mailed out a package of blank financial statement forms for directors (19-6a for existing directors and 19-6 for new directors) at the beginning of each year. However, these forms are now available on the Department's website at: www.state.ga.us/dbf/bank_related.html.
Please retrieve these forms as needed from the Internet address noted above. If you have difficulty downloading and printing the forms, please contact Merian Croston at (770) 986-1658 to obtain these forms in hard copy.
Back to Top