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

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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/

March 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 March, 2000.
IN THIS ISSUE: Governor Barnes declares additional state holiday House Bill 1231 becomes law

APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION:

Integrity Bank

11130 State Bridge Road

Alpharetta GA 30022

Fulton County

Capitalization:

$ 10,000,000

Approval Date:

Pending

Begin Business Date:

FINANCIAL INSTITUTION:

Georgia Banking Company

6520 Powers Ferry Road, Suite 110

Atlanta GA 30339

Fulton County

Capitalization:

$ 5,000,000

Approval Date:

Pending

Begin Business Date:

FINANCIAL INSTITUTION:

Community Bank of Pickens County

15 Mountainside Drive

Jasper GA 30143

Pickens County

Capitalization:

$ 5,000,000

Approval Date:

Pending

Begin Business Date:

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION NAME:

Athens First Bank & Trust Company

Athens GA

BRANCH NAME:

Lake Oconee Branch

1023 C-1 Lake Oconee Parkway

Eatonton GA 30124

Putnam County

Approval Date:

Withdrawn

03-15-2000

Begin Business Date:

FINANCIAL INSTITUTION NAME:

Citizens Trust Bank

Atlanta GA

BRANCH NAME:

Martin Luther King Jr. Branch Office

2577 Martin Luther King, Jr. Drive, NW

Atlanta GA 30311

Fulton County

Approval Date:

03-10-2000

Begin Business Date: 03-13-2000

FINANCIAL INSTITUTION NAME: Citizens Trust Bank Atlanta GA
BRANCH NAME: Mutual Federal Branch Office 205 Auburn Avenue

Approval Date: Begin Business Date:

Atlanta GA 30303 Fulton County 03-08-2000 03-13-2000

FINANCIAL INSTITUTION NAME:

SunTrust Bank

Atlanta GA

BRANCH NAME:

Enchanted Forest Safeway Branch Office

10000 Baltimore National Pike

Ellicott City MD 21042

Howard County

Approval Date:

Pending

Begin Business Date:

FINANCIAL INSTITUTION NAME:

SunTrust Bank

Atlanta GA

BRANCH NAME:

Long Gate Center Safeway Branch Office

4370 Montgomery Road

Ellicott City MD 21043

Howard County

Approval Date:

Pending

Begin Business Date:

FINANCIAL INSTITUTION NAME:

SunTrust Bank

Atlanta GA

BRANCH NAME:

Franklin Wal-Mart Branch Office

1500 Armory Drive

Franklin VA 23851

Franklin County

Approval Date:

Pending

Begin Business Date:

FINANCIAL INSTITUTION NAME:

SunTrust Bank

Atlanta GA

BRANCH NAME:

Germantown Town Center Safeway Branch Office

Route 118 at Middlebrook Road

Germantown MD 20874

Montgomery County

Approval Date:

Pending

Begin Business Date:

FINANCIAL INSTITUTION NAME: SunTrust Bank Atlanta GA

BRANCH NAME:
Approval Date: Begin Business Date:

Pooler-Godley Station Branch Office Northeast Quadrant of Pooler Pkwy and Benton Drive Pooler GA 31322 Chatham County 03-06-2000

FINANCIAL INSTITUTION NAME:

SunTrust Bank

Atlanta GA

BRANCH NAME:

Rock Creek Village Safeway Branch Office

5510 Norbeck Road

Rockville MD 20853

Montgomery County

Approval Date:

Pending

Begin Business Date:

FINANCIAL INSTITUTION NAME:

SunTrust Bank

Atlanta GA

BRANCH NAME:

London Towne Boulevard Safeway Branch Office

1313 London Towne Boulevard

Sykesville MD 21764

Carroll County

Approval Date:

03-03-2000

Begin Business Date:

FINANCIAL INSTITUTION NAME:

Community Bank & Trust - Jackson

Commerce GA

BRANCH NAME:

Wal-Mart Banking Center Branch Office

30983 South Highway 441

Commerce GA 30529

Jackson County

Approval Date:

02-03-2000

Begin Business Date: 03-15-2000

FINANCIAL INSTITUTION NAME:

Community Bank & Trust - Habersham

Cornelia GA

BRANCH NAME:

Wal-Mart Clayton Banking Center Branch Office

1455 Highway 44, South

Clayton GA 30525

Rabun County

Approval Date:

03-27-2000

Begin Business Date:

FINANCIAL INSTITUTION NAME:

Community Bank & Trust - Habersham

Cornelia GA

BRANCH NAME:

Ingles Toccoa Banking Center Branch Office

757 Big A Road, U. S. Highway 17

Toccoa GA 30577

Stephens County

Approval Date:

03-27-2000

Begin Business Date:

FINANCIAL INSTITUTION NAME:

First Newton Bank

Covington GA

BRANCH NAME:

Highway 20 Branch Office

5140 Highway 20 South

Covington GA 30016

Newton County

Approval Date:

01-06-2000

Begin Business Date: 03-01-2000

FINANCIAL INSTITUTION NAME:

Bank of Terrell

Dawson GA

BRANCH NAME:

Leesburg Branch Office

3003 North Slappey Drive

Albany GA 31701

Lee County

Approval Date:

03-03-2000

Begin Business Date:

FINANCIAL INSTITUTION NAME:

Chestatee State Bank

Dawsonville GA

BRANCH NAME:

Foothills Branch Office

100 Steve Tate Road

Marble Hill GA 30148

Pickens County

Approval Date:

03-03-2000

Begin Business Date:

FINANCIAL INSTITUTION NAME: The Bank of Dodge County Eastman GA
BRANCH NAME: Soperton Branch Office 310 Main Street, West Soperton GA 30457 Treutlen County

Approval Date:

03-31-2000

Begin Business Date:

FINANCIAL INSTITUTION NAME:

Bank of Lenox

Lenox GA

BRANCH NAME:

Moultrie Branch Office

2424 Tallokas Road

Moultrie GA 31768

Colquitt County

Approval Date:

03-29-2000

Begin Business Date:

FINANCIAL INSTITUTION NAME:

1st Floyd Bank

Rome GA

BRANCH NAME:

Peoples First Community Bank Branch Office

9699 Rome Boulevard

Rome GA 30747

Chattooga County

Approval Date:

03-27-2000

Begin Business Date:

FINANCIAL INSTITUTION MERGERS

FINANCIAL INSTITUTION SURVIVOR:

Atlanta Postal Credit Union

Atlanta GA

MERGED INSTITUTION:

Decatur Postal Credit Union

Decatur GA

Approval Date:

03-06-2000

Begin Business Date:

FINANCIAL INSTITUTION SURVIVOR:

Wachovia Bank

Winston-Salem NC

MERGED INSTITUTION:

Bank of Canton

Canton GA

Approval Date:

Pending

Begin Business Date:

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

FORMATIONS

BANK HOLDING COMPANY: TO ACQUIRE: Approval Date:

Futurus Financial Services, Inc. Alpharetta GA
Futurus Bank, N. A. (In Organization) Alpharetta GA Pending

BANK HOLDING COMPANY: TO ACQUIRE: Approval Date:

NBG Bancorp, Inc. Athens GA
National Bank of Georgia (In Organization) Athens GA 03-17-2000

BANK HOLDING COMPANY: TO ACQUIRE: Approval Date:

Centura Bank Rocky Mount NC
Centura Card Bank (In Organization) Norcross GA Pending

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

ACQUISITIONS ONLY

BANK HOLDING COMPANY: TO ACQUIRE: Approval Date:

United Community Banks, Inc. Blairsville GA
Dawson County Bank Dawsonville GA Pending

BANK HOLDING COMPANY: TO ACQUIRE: Approval Date:

United Community Banks, Inc. Blairsville GA
Independent Bank & Trust Company Powder Springs GA Pending

BANK HOLDING COMPANY:

TO ACQUIRE: Approval Date:

First Sterling Banks, Inc. Kennesaw GA
Main Street Bank Covington GA Pending

APPLICATIONS FOR RESERVATION OF A NAME

PROPOSED NAME: APPLICANT:

First Nation Bank Newton County
Mr. E. A. Crudup, Jr. Attorney at Law Crudup & Hendricks, LLP Post Office Box 187 Covington, GA 30015

PROPOSED NAME: APPLICANT:

The Brookhaven Bank DeKalb County
Mr. Spurgeon Richardson, III President Liberty Development Corporation 3927 Peachtree Road Atlanta, GA 30319

NOTICE OF CHANGE IN NAME

PREVIOUS NAME:
NEW NAME: Approval Date: Effective Date:

Cordele Banking Company Cordele GA
PlantersFIRST 03-24-2000

PREVIOUS NAME:
NEW NAME: Approval Date: Effective Date:

Bank of Dahlonega Dahlonega GA
Century South Bank of Dahlonega Pending

PREVIOUS NAME:
NEW NAME: Approval Date: Effective Date: PREVIOUS NAME:
NEW NAME: Approval Date: Effective Date: PREVIOUS NAME:
NEW NAME: Approval Date: Effective Date: PREVIOUS NAME:
NEW NAME: Approval Date: Effective Date:

Bank of Danielsville Danielsville GA Century South Bank of Danielsville Pending
First Community Bank of Dawsonville Dawsonville GA Century South Bank of Dawsonville Pending
The Bank of Ellijay Ellijay GA Century South Bank of Ellijay Pending
Peoples Bank, Lavonia, Georgia Lavonia GA Century South Bank of Lavonia Pending

APPLICATIONS TO CHANGE LOCATION

FINANCIAL INSTITUTION:

First American Bank and Trust Company

Athens GA

CHANGE LOCATION OF:

Georgia Square Office

From:

3810 Atlanta Highway

Bogart GA 30622

Oconee County

To:

1720 Epps Bridge Road

Athens GA 30622

Oconee County

Approval Date:

11-10-1999

Effective Date:

03-01-2000

FINANCIAL INSTITUTION: First Community Bank of Southwest Georgia

CHANGE LOCATION OF: From:
To:
Approval Date: Effective Date:

Bainbridge GA
Shotwell Street Office 400 East Shotwell Street Bainbridge GA 31717 Decatur County 1705 East Shotwell Street Bainbridge GA 31717 Decatur County 02-14-2000 03-20-2000

CHECK CASHER LICENSES ISSUED

CITY: APPLICANT NAME: TRADE NAME:

Atlanta GA Payday, Inc. Mr. Payroll Check Cashing

CITY: APPLICANT NAME: TRADE NAME:

Kennesaw GA *ACHENG, Inc. Shell Food Mart

CITY: APPLICANT NAME: TRADE NAME:

Albany GA APH Enterprises, LLC South Slappey Liquors

CITY: APPLICANT NAME: TRADE NAME:

Gainesville GA Bear's Paw Investments, Inc. American Cash Express

CITY: APPLICANT NAME: TRADE NAME:

Tucker GA Check Cashing 2000+, LLC Check Station

CITY: APPLICANT NAME: TRADE NAME:

Marietta GA Khalaf Enterprises, Inc. Dinero Ctr

CITY: APPLICANT NAME: TRADE NAME:

Marietta GA *Wanneg, Inc. Bells Ferry Package Store

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

APPROVAL OF ELECTRONIC DATA PROCESSING SERVICER
FINANCIAL INSTITUTION: M & I Custody of Nevada, Inc.

Approval Date:

Las Vegas NV 03-10-2000

FINANCIAL INSTITUTION:

M & I Portfolio Services, Inc.

Las Vegas NV

Approval Date:

03-10-2000

FINANCIAL INSTITUTION:

M & I Marshall & Ilsley Bank

Milwaukee WI

Approval Date:

03-10-2000

JULY 3, 2000, DECLARED STATE HOLIDAY
Governor Barnes has declared observance of July 3, 2000, as an additional state holiday:
WHEREAS: Under O.C.G.A. Section 1-4-1, the Governor shall close all state offices and facilities a minimum of twelve (12) days in observance of public and legal holidays throughout the year; and
WHEREAS: Currently, only eleven (11) days are designated as state holidays for 2000, NOW, THEREFORE, PURSUANT TO THE AUTHORITY VESTED IN ME AS GOVERNOR OF THE STATE OF GEORGIA, IT IS HEREBY ORDERED: That Monday, July 3, 2000, shall be a state holiday observed by all state offices and facilities throughout the State of Georgia.
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DEPARTMENT OF BANKING AND FINANCE
2000 HOUSEKEEPING BILL (HB 1231)
The Governor signed HB 1231 on March 24, 2000, and it is effective upon his signature. The bill was more compact than previous years and focused on giving financial institutions increased flexibility in their operations and powers. The massive federal legislation signed in November 1999, The Gramm-Leach-Bliley Act, is being continuously studied to determine its impact on state banks. It was the Department's intention that the increased flexibility provisions would assist state banks in remaining competitive and being responsive to change in the legal environment.
You can access the complete bill at www.state.ga.us/services/leg - then click on 1999/2000 Passed Legislation, then on Y2000 House Bills, then select a version of HB 1231 ("Full"; "1st Reader"; or "Status"). Or you can access the bill from the Department's homepage (www.state.ga.us/dbf) by clicking on the link in the scrolling "UPDATE" box.
Following is a short summary, followed by a Section-by-Section Summary. The provisions in the bill can roughly be divided into four categories:
1. Provision for flexibility and competitiveness in financial institution powers; 2. Interstate updates; 3. Departmental procedures: criteria for applications and efforts to reduce paperwork; and 4. Enforcement remedies.

1. Provision for flexibility and competitiveness in financial institution powers
State financial institutions must be able to react to the changing legal environment and powers of competing providers. An enhancement to the Financial Institutions Code would allow parity to be achieved through a departmental review process on a case by case basis, as well as by promulgating regulations. A number of other provisions are designed to provide state banks with parity in certain areas.
2. Interstate updates
As banks grow and expand geographically to other states, certain laws need adjustment to accommodate interstate needs. The Department has the ability to share resources with other regulators and currently does so with federal regulators. With the expansion of state banks into other states the Department may require assistance from state bank regulators in those states in connection with the supervision of those interstate banks and provisions in law to handle the logistics of those arrangements.
Other changes clarify where a bank holding company is located for purposes of state regulation, and banks with branches in other states now have more flexibility in the residency of their directors. Clarification of which holding companies can form new banks is included, to conform to current law regarding entry into the state.
3. Departmental procedures: criteria for applications and efforts to reduce paperwork
In an effort to clarify the criteria the Department uses to evaluate an application or notice to establish a branch office, and to reflect current practice, the bill sets out the criteria in Code Section 7-1-602 itself, instead of referring to the statute for new charters. The current notice procedure which dispenses with need for publication is also referred to.
In the mortgage area, the bill streamlines filing procedures by eliminating a separate annual report and incorporating the annual report information into the application for license renewal. In connection with this change, the license renewal date was moved to the former date for annual reports. Also, federally insured financial institutions have been completely exempted from the law, and wholly owned bank subsidiaries are entitled to an exemption if they satisfy certain minimal requirements. Subsidiaries of bank holding companies will all be registrants.
4. Enforcement remedies
When the Department is authorized to determine an applicant's fitness to obtain a license (check cashers, check sellers and mortgage lenders and brokers), it must have statutory authority to obtain fingerprint data. A minor change to three statutes will satisfy an FBI requirement to obtain this data.
Article 4A on check cashers failed to provide the Department with the ability to order a person to cease and desist from engaging in check cashing without a license or exemption. This bill adds that authority, using identical language found in the mortgage regulatory area.
In the Georgia Residential Mortgage Act, additions are included to cover situations where proper examinations were not possible because licensees concealed or altered documents.

HB 1231

DEPARTMENT OF BANKING AND FINANCE'S YEAR 2000 HOUSEKEEPING LEGISLATION
SECTION-BY-SECTION SUMMARY

7-1-4 Definitions.
This change would clarify that the term "financial institution," for the limited purpose of two parts of Title 7 dealing with: (1) safe deposit boxes, unclaimed property fees and third party claims to deposits (Part 6 of Article 2 of Chapter 1); and (2) Article 8, Multiple Party Accounts, includes federal credit unions.
In both those parts, national banks were specifically included in Code Section 7-1-4(7). The effect of this change makes the application of the above referenced statutes more even handed among state and federal financial institutions.
7-1-7 Publication of notices or advertisements.
This housekeeping change is necessary after last year's amendment of Code Section 7-1-601. It is a correction.
7-1-61 Rules and regulations.
The repeal of Glass-Steagall and the other provisions in the massive federal legislation now called The Gramm-Leach-Bliley Act (the Modernization Act) signed into law by the President on November 12, 1999, will have a significant effect on the powers and operations of state and federal financial institutions.
This new federal legislation will be evolving over at least the next two years with the interpretations of its various provisions and with the issuance of various regulations. To assure the ability to provide state chartered financial institutions parity with other federally insured financial institutions in this time of change, this section provides the Commissioner with the needed flexibility to adjust certain limits on listed activities to provide parity. Decisions would be made on a case by case basis, made public and would always be weighed against any safety and soundness concern.
7-1-261 Additional operational powers.
A minor addendum to subsection (5) refers to the addition to Code Section 7-1-282 which allows a bank to own and lease real property to a governmental authority. It also references Code Section 7-1-286 which currently has a subsection dealing with ownership of real property and should have been included previously. Secondly, the addition of "applicable federal laws" to subsection (11) is a conforming change which acknowledges the new body of federal law regarding the sale of insurance by state banks enacted as a part of the recent Modernization Act. Third, the language "or incident or complementary to financial activities" is added to subsection (11) to parallel language in the new federal Modernization Act.
7-1-282 Direct leasing of personal and real property.
To achieve parity with national banks, the change adds a new subsection (b) to permit state banks to purchase real property for the purpose of leasing it to a governmental body, provided the lessee has the authority to enter into such a lease, has sufficient resources to make the lease payments and will become the owner of the building or property upon expiration of the lease
7-1-285 Limits on obligations of one person or corporation.
Additions to this code section reflect the ability to impose less restrictive loan limitation requirements on well capitalized, well managed banks. Additionally, a bank could petition the Department for approval to use a different set of lending limits which would be identical to those allowed to national banks
7-1-286 Real estate loans; acquisition by bank or trust company of ownership interest.
This is a correction to substitute the proper reference.
7-1-288 Corporate stock and securities.
Banks may own stock in other banks which provide services to financial institutions. The change eliminates the requirements that such banks provide service to, and that the stock of such banks be owned primarily by, financial institutions in Georgia. As changed, the only requirement would be for the

stock of such banks to be owned primarily by the financial institutions to whom they provide services. In a new subsection (d), flexibility in investment limitations is permissible for certain well capitalized and well managed institutions.
7-1-480 Board of directors.
As banks grow geographically, there is more need to diversify the composition of the bank Board of Directors. The changes would allow banks with branches outside Georgia to provide for residency requirements for directors in their Articles and By-laws.
7-1-482 Number, term, and compensation of directors.
The section adds a provision to subsection (b) to provide an option to stagger terms for members of a bank's Board of Directors which is parallel to a provision in the Georgia Corporation Code. The addition of a new subsection (d) would allow a bank's Board of Directors to appoint regional directors whose powers would be delegated to them by the main board. This would facilitate local or decentralized decision making for a larger, geographically diverse institution.
7-1-530 Authority to merge or consolidate; merger or consolidation across state lines.
This addition to the merger statute provides specifically for the situation where a Georgia bank merges in other banks from out of state, and allows any nonconforming assets or activities that merger might bring to be held for a limited period, or to be allowed to continue if the Commissioner deems it a safe and sound activity.
7-1-555 National bank to state bank or trust company conversions, mergers, and consolidations Effect of issuance of certificate.
This addendum parallels Code Section 7-1-530 for national banks converting to state banks.
7-1-602 Branch offices.
This code section describes how the Department approves branch applications. Instead of referring to the code section for new charters, the criteria the Department is to use for evaluation of branch applications now would be self contained within this code section. It is believed that this will result in easier reference and greater clarity regarding the criteria used by the Department. It also allows the Department to streamline the application process for certain well qualified banks.
7-1-608 Bank holding companies - Unlawful acquisitions.
This addition clarifies the intent of the branching and entry laws to restrict the ability of a bank holding company to form an additional new bank to only those bank holding companies who entered Georgia according to state entry laws.
7-1-621 Definitions. and 7-1-628.1 Definitions.
These two statutes each provide definitions. The change in each to the definition of "principal place of business of a bank holding company" would put it in the state which chartered the subsidiary bank(s) having the largest aggregate volume of deposits. The current definition could result in the principal place of business being in a state which did not charter any of the subsidiary banks, an illogical result. The term is used primarily for determining the necessity to apply for permission or registration for certain activities of the holding company.
7-1-628.7 Examinations and reports.
When the Riegle-Neal Interstate Act was passed in 1994, Georgia enacted numerous statutory provisions such as current subsections (c), (d), and (e) of this code section, which gave to the Department the ability to use the examinations and information which could be provided by other states where branches of interstate banks might be located.

The addition of new subsections (e) and (f) further refine this interstate supervisory process by providing specifics on how such cooperative arrangements would work and how the cost of supervision would be passed on to the institution in a fair and efficient manner. With Department approval, host state regulators performing supervisory functions pursuant to an interstate agreement would assess examination/ supervision fees to a Georgia interstate bank through the Department, as agent. Upon collection, the Department would pass such fees on to the assessing state.
7-1-682 Qualifications of licensees; investments required.
The Department has been required to obtain criminal record information from the Georgia Crime Information Center and FBI for certain licenses. The addition of this paragraph describing the process for obtaining such information coincides with the same provision in the Georgia Residential Mortgage Act and in the check casher law and simply provides for the process for check sellers.
7-1-702 Background investigation; effect of past convictions; conviction data; license posting requirements; term of license.
This addition makes a change necessary to satisfy the FBI requirement for fingerprint information by stating the Department "shall" submit information to the Georgia Crime Information Center. Formerly the statute said "may" submit and was recently deemed not acceptable. The FBI has approved the proposed language.
7-1-707 Suspension or revocation of license.
The additions of the paragraphs in this code section give the Department the power to issue a cease and desist order to an unlicensed party cashing checks or to a check casher who is in violation of law. The sections are identical to those used in the Georgia Residential Mortgage Act and afford the right to an administrative hearing and penalties if a final order is disobeyed. It also gives the Department the ability to establish fines by regulation should they become necessary.
7-1-709 Applicability of article.
The change to paragraph (1) of this code section attempts to eliminate compliance burdens for small business owners deriving only small amounts of income from cashing checks.
GEORGIA RESIDENTIAL MORTGAGE ACT SECTION-BY-SECTION SUMMARY
7-1-1000 Definitions.
This minor change simply corrects the reference to the definition of registrant.
7-1-1001 Exemption for certain persons and entities; registration requirements. of exempt persons:
Changes made to subsection (2) exempt all federally insured financial institutions from licensing and registration. Additional changes allow their wholly owned subsidiaries to also be exempt from licensing or registration provided they submit a basic notification which allows the Department to process inquiries and forward complaints. The exemption could be lost or they could be subject to a Cease and Desist Order if the entity fails to properly handle Georgia consumer problems. Certain registrations were formerly required, and these changes reduce burden on financial institutions or their wholly owned subsidiaries without sacrificing consumer protection. All wholly owned non bank subsidiaries of holding companies will now be registrants under the Georgia Residential Mortgage Act.
7-1-1002 Transaction of business without a license, registration or exemption prohibited; knowing purchase of mortgage loan from unlicensed or nonexempt broker or lender prohibited; liability of persons controlling violators.

A change to paragraph (a)(1) would simply include registrants as a category covered by the Georgia Residential Mortgage Act, which was intended. The change to subsection (b) would include a prohibition on the transferring of "loan applications" along with the prohibition on transferring "loans." The Department has found the transferral of applications to be an area of abuse.
7-1-1003 Applications for licenses.
The financial requirements for licensure or registration are consolidated and moved to Code Section 7-1-1003.2 and the changes to subsection (c) reflect that.
7-1-1003.2 Financial Requirements for Licensing and Registration.
All of the financial requirements for lenders and brokers are consolidated in this new statute for ease of reference. No changes to the financial requirements were proposed, but the option of using a letter of credit in lieu of a bond was added.
7-1-1003.3 Application for registration.
This new code section explains what registration entails.
7-1-1003.4 Notification statement.
This new code section sets out the requirements for the information contained in a notification statement, to be filed by a subsidiary of a lender.
7-1-1004 Investigation of applicant and its officers; requirements relative to licensees and registrants.
Following industry requests to establish education and experience requirements, the Department has determined to add to this statute the ability to develop basic education or experience requirements to be met by a prospective broker applicant. The requirements would be proposed in regulations under the Administrative Procedure Act. The initial intent is to satisfy either a series of courses on mortgage law or certify experience under a licensee, registrant or exemptee.
The financial requirements for licensure or registration are consolidated and moved to Code Section 7-1-1003.2 and the deletions in subsections (c) and (d) reflect that.
Wording changes in subsection (f) satisfy FBI requirements to obtain fingerprints.
7-1-1005 Renewal of licenses and registrations.
Because the necessity for a separate annual report is eliminated by the changes to Code Section 7-1-1010, the date for renewal of application has been moved to the date formerly used for annual reporting. The changes to this code section reflect that change. The information submitted at renewal would include that from the old annual report.
7-1-1006 Contents of license; posting of license; transferring of license; transacting business under other name; change of address; opening additional office without prior approval.
A change to subsection (a) eliminates the need for an address on the license itself.
The additions in subsections (e) and (f) would require a licensee to notify the Department when it changes its Georgia branch manager. The branch manager must be approved since he/she operates a location for a licensee.
7-1-1009 Maintenance of books, accounts, and records; investigation and examination of licensees and registrants by department; confidentiality; exemptions from civil liability.
The only change here adds a reference to the new Code Section 7-1-1003.2, Financial Requirements.
7-1-1010 Annual written report; annual financial statements.

Elimination of the annual report is reflected in the deletion of subsection (a). The information would be collected at license renewal but the burden of an extra report would be removed. Clarifying changes regarding financial statements are made to former subsections (b) and (c) and a reference to the new Code Section 7-1-1003.2 is included in the former subsection (b).
7-1-1013 Prohibition of certain acts.
The proposed addition of subsection (11) would make it a prohibited act to conceal, alter or delete information on documents which the Department seeks to examine and to make false statements to Department examiners.
7-1-1018 Cease and desist orders; enforcement procedure; civil penalty; fines.
A simple addition indicates that those parties who must file a notification statement could be subject to a cease and desist order for violation of law.
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