Department of Banking and Finance bulletin, Apr. 30, 2002

. . . .BULLETIN. . . .BULLETIN. . . .BULLETIN. . . .BULLETIN. . . .
STATE OF GEORGIA

DEPARTMENT OF BANKING AND FINANCE
2990 Brandywine Road, Suite 200 Atlanta, Georgia 30341-5565
DAVID G. SORRELL, ACTING COMMISSIONER

Phone: (770) 986-1633

Fax: (770) 986-1655

Internet Address: http://www.state.ga.us/dbf/ or http://www.gadbf.org
April 30, 2002
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 April 2002.
NOTICES:
Georgia Fair Lending Act Questions, Inquiries, and Comments
USA Patriot Act Update
Consent Order and Judgment - Department of Banking and Finance v. Vista Bank, Ltd. & Carl H. Lane

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APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION
Generations Bank 336 Blue Ridge Street Blairsville, GA 30512 Union County
McIntosh Commercial Bank 820 Dixie Street Carrollton, GA 30117 Carroll County

CAPITALIZATION
$ 6,500,000

APPROVAL DATE
Pending

$ 10,000,000

Pending

BEGIN BUSINESS DATE

PREVIOUS NAME
Security First Network Bank Atlanta Fulton County
First Georgia Bank Brunswick Glynn County
Synovus Trust Company Columbus Muscogee County

FINANCIAL INSTITUTION CONVERSIONS

CONVERTED TO
SFNB (Georgia) Bank

APPROVAL DATE
04-01-2002

EFFECTIVE DATE

First Georgia Bank

Pending

Synovus Trust Company, N.A.

Pending

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION
Bank of Alapaha Alapaha

BRANCH OFFICE
Adel Branch Office 206 E. Fourth Street Adel, GA 31620 Cook County

APPROVAL DATE
01-07-2002

BEGIN BUSINESS
DATE
04-29-2002

SunTrust Bank Atlanta

Dacula Village In-Store Branch Office 720 Dacula Road Dacula, GA 30019 Gwinnett County

04-22-2002

SunTrust Bank Atlanta

Cheshire Station Safeway In-Store Branch Office 4215 Cheshire Station Plaza Dale City, VA 22193 Prince William County

03-21-2002 04-03-2002

SunTrust Bank Atlanta

East Hanover Kroger In-Store Branch Office 6335 Mechanicsville Turnpike Mechanicsville, VA 23111

03-15-2002 04-09-2002

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Hanover County

Columbus Bank and Trust Company Columbus

Milgen Road Branch Office 6480 Milgen Road Columbus, GA 31907 Muscogee County

Community Bank & Trust Cornelia
Southern Community Bank Fayetteville
FirstCity Bank Gibson

Wal Mart #1400 Branch Office 1911 Epps Bridge Road Athens, GA 30606 Oconee County
Peachtree City Branch Office Aberdeen Parkway and Highway 74 Peachtree City, GA 30269 Fayette County
Eagles Landing Branch Office 634 Eagles Landing Parkway Stockbridge, GA 30281 Henry County

Riverside Bank Marietta
The Citizens Bank Nashville
United Security Bank Sparta
First Bank of Georgia Thomson
Durden Banking Company, Incorporated Twin City
FLAG Bank Vienna

Chastain Road Branch Office 555 Chastain Road, N. W. Kennesaw, GA 30144 Cobb County
Bemiss Branch Office 4048 Bemiss Road Valdosta, GA 31605 Lowndes County
Woodstock Branch Office 8770 South Main Street Woodstock, GA 30188 Cherokee County
Furys Ferry Branch Office 375 Furys Ferry Road Martinez, GA 30907 Columbia County
Metter Branch Office 900 South Lewis Street Metter, GA 30439 Candler County
Roswell Branch Office 100 D Norcross Street Roswell, GA 30075 Fulton County

04-03-2002 04-22-2002 04-01-2002 04-04-2002 05-02-2000 10-22-2001 04-24-2002 04-09-2002 08-14-2001 04-01-2002 12-28-2001 04-15-2002 03-11-2002 04-01-2002

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NOTICE OF CHANGE IN NAME

PREVIOUS NAME
Southern Horizon Bank (In Organization) Jonesboro

NEW NAME
Community Capital Bank (In Organization)

APPROVAL DATE
02-18-2002

EFFECTIVE DATE
03-15-2002

PROPOSED NAME
Atlanta Business Bank

APPLICATIONS FOR RESERVATION OF A NAME

COUNTY
Fulton County

APPLICANT
Mr. Michael P. Marshall, Jr., Attorney Miller & Martin LLP 1275 Peachtree St., NE, 7th Floor Atlanta, GA 30309-3576

Community Bank of West Georgia

Carroll County

Ms. Maureen A. FitzGerald, Attorney Morris, Manning & Martin 3343 Peachtree Road, NE Atlanta, GA 30326

First Bank of Atlanta

Gwinnett County

Mr. Joel Carter, Attorney Powell Goldstein Frazer & Murphy 191 Peachtree St., NE, 16th Floor Atlanta, GA 30303

First Georgia Bank

Glynn County

Ms. Beth Lanier, Attorney Powell Goldstein Frazer & Murphy 191 Peachtree St., NE, 16th Floor Atlanta, GA 30303

Oglethorpe Bank

Glynn County

Mr. Robert M. Moler Financial Solutions 2905 Flowers Rd S., Suite 112 Atlanta, GA 30341

FINANCIAL INSTITUTION (SURVIVOR)
First National Bank of Griffin Griffin

FINANCIAL INSTITUTION MERGERS
MERGED INSTITUTION
American Community Bank of Georgia McDonough

Farmers and Merchants Bank Lakeland

The United Community Bank Nashville

First Bank of Gwinnett Lawrenceville

Embry Bank Lawrenceville

The Park Avenue Bank Valdosta

First Community Bank of Southwest Georgia Bainbridge

Branch Banking and Trust Company Winston-Salem, NC

Community First Bank Carrollton

APPROVAL DATE
04-18-2002

EFFECTIVE DATE

Pending

Pending

10-30-2001

04-30-2002

04-29-2002

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

BANK HOLDING COMPANY
FNB Banking Company Griffin, GA
Gwinnett Commercial Group, Inc. Lawrenceville, GA
RBC Centura Banks, Inc. Rocky Mount, NC

ACQUISITIONS ONLY
TO ACQUIRE
American Community Bank of Georgia McDonough, GA
Embry Bank Lawrenceville, GA
Tucker Federal Bank Tucker, GA

APPROVAL DATE
04-18-2002
Pending
Pending

CITY
Conyers Conyers Marietta
Atlanta Smyrna Smyrna Norcross Warner Robins Atlanta Atlanta

CHECK CASHER LICENSES ISSUED

APPLICANT NAME
Allen Cox, Inc. Brijal, Inc. International Electronics Enterprise, Inc. Jones, Reuben L Ladden Group, LLC Mail Etc., Inc. Marichal, Inc. Peddler Pawn, Inc. SLC Corporation Teh Yung, Inc.

TRADE NAME
Express Cash Sigman Bottle Shop International Electronics
R & B Financial Services El Valu Check Cashing Mail Etc Paras Check Cashing Peddler Pawn Now Check Cashing Moreland Package Store

GEORGIA FAIR LENDING ACT QUESTIONS, INQUIRIES, AND COMMENTS
The Governor signed the Georgia Fair Lending Act (HB 1361) into law on April 22, 2002. The law is effective October 1, 2002 and affects all lenders and brokers who make home loans in Georgia. The Department requests that you send your questions, inquiries and comments on the Georgia Fair Lending Act to us by June 15, 2002, so that we all can prepare for the October 1 implementation date for this law. You may send these comments by e-mail to gafla@dbf.state.ga.us or regular mail or by fax. We would greatly appreciate you referencing that your correspondence regards the Georgia Fair Lending Act in order to expedite the Department's handling of this correspondence. The Department intends to compile a question and answer database from this correspondence that will be posted on our website www.gadbf.org as soon as possible before October 1, 2002. Thanks in advance for your help with this matter.
TREASURY DEPARTMENT USA PATRIOT ACT UPDATE
On April 23, 2002, the Treasury Department announced three developments in the implementation of the USA PATRIOT Act:
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New Industries Covered
Treasury announced new regulations that will require key financial sector industries to implement programs designed to prevent the services they offer from being used to facilitate money laundering or the financing of terrorism. These new regulations will expand the number of financial institutions required to have such a program, as required by the USA PATRIOT Act. (The financial institutions are defined in the Bank Secrecy Act, 31 U.S.C. 5312(a)(2)(A) thru (X), as amended by the Patriot Act). The Act mandates that all industries defined as financial institutions must have anti money-laundering programs in place by April 24, 2002 unless the Secretary exempts them.
The industries that will have a new obligation to implement an anti-money laundering program as a result of these regulations include: (1) mutual funds; (2) operators of credit card systems; (3) money services businesses, such as money transfer companies and check cashers; (4) securities brokers and dealers registered with the Securities and Exchange Commission; and (5) futures commission merchants and accompanying introducing brokers registered with the Commodity Futures Trading Commission. These industries, with the exception of broker dealers and futures commission merchants, have ninety days to develop anti-money laundering programs.
With these new regulations, Treasury will have issued an unprecedented nine sets of regulations and guidance and three reports to Congress related to money laundering and terrorist financing, affecting the primary industries providing financial services, all in response to passage of the USA PATRIOT Act six months ago.
Studying Some Industry Sectors
Treasury is also exercising its authority to defer, for a period of no more than six months, the application of section 352 to the remaining categories of financial institutions under the Bank Secrecy Act to allow Treasury time to study these new industry sectors and develop regulations applicable to them. Many of the remaining financial institutions are small businesses that have never been subject previously to Federal anti-money laundering regulation, and the risks inherent in their operations will vary considerably. Therefore, the program requirements for one industry may not be appropriate for others. With this additional time, Treasury will be able to issue regulations tailored to each industry.
The business sectors subject to further study include dealers in precious metals, stones, or jewels; pawnbrokers; loan or finance companies; private bankers; insurance companies; travel agencies; telegraph companies; a business engaged in vehicle sales, including automobiles, airplanes, and boats; persons involved in real estate closings and settlements; investment companies other than mutual funds; and commodity pool operators and commodity trading advisors.
Although Treasury is deferring application of section 352 for a brief period, all such businesses have an existing obligation to file reports of transactions involving cash or currency (Form 8300).
Finally, all financial institutions are encouraged to voluntarily report possible money laundering and terrorist activity to FinCEN by calling its Financial Institutions Hotline (1-866-556-3974).
Please click on the links below to review the related Regulations/Interim Final Rules for each industry:
Operators of Credit Card Systems
Mutual Funds
Financial Institutions (Banks, Credit Unions, etc. and Securities Brokers/Dealers)
Money Service Businesses (MSBs)
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CONSENT ORDER AND JUDGMENT DEPARTMENT OF BANKING AND FINANCE v. VISTA BANK, LTD & CARL H. LANE
On April 25, 2002, Vista Bank, Ltd. and Carl H. Lane agreed to the terms of a Consent Order and Judgment issued by Judge Rowland W. Barnes in the Superior Court of Fulton County in Department of Banking and Finance v. Vista Bank, Ltd. & Carl H. Lane, Civil Action No. 2001CV45945. On April 15, 2001, a Cease and Desist Order was issued by the Department of Banking and Finance. The Defendants agreed that they would "strictly abide" by the terms of this Cease and Desist Order. After the date that the Cease and Desist Order became final and the Defendants agreed to "strictly abide" by its terms, the Defendant issued two standby letters of credit totaling $20,000,000, signed by Mr. Carl Lane, which represented Vista Bank, Ltd. to have a branch office in the State of Georgia. Upon discovering the issuance of the two standby letters of credit by the defendants, the Department instituted the above action. The issuance of these letters of credit violated O.C.G.A. 7-1-241, 7-1-243, 7-1-713 & 7-1-721 and violated the Cease and Desist Order. The Consent Order forever enjoins the Defendant from violation of the Cease and Desist Order or any provisions of the Financial Institutions Code of Georgia. The Consent Order additionally includes an injunction against maintaining an office in this State, including but not limited to the operations at 400 Colony Square, Suite 200, 1201 Peachtree Street, Atlanta, Georgia 30361 for any and all functions or duties related to VistaBank, Ltd. A judgment was entered in favor of the Plaintiff, the Department of Banking and Finance, in the amount of $25,000. A link to the full text of the Consent Order is available from the Department website in the updates scrollbox (http://www.gadbf.org) or directly at: http://www.state.ga.us/dbf/pdfdoc/VistaBankConsentOrder.pdf. If there are any questions regarding the provisions of the Consent Order or concerns regarding any violations of the Consent Order after April 25, 2002, please contact Deputy Commissioner for Supervision George A. Reynolds at (770) 986-1629.
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