Department of Banking and Finance bulletin, Aug. 31, 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/
August 31, 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 August 2002.
In This Issue:
Georgia Fair Lending Act - Questions and Answers (Q&A) Policy Statement: Debt Cancellation Contracts

APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION
Neighbors Bank 2320 Old Milton Parkway Alpharetta, GA 30004 Fulton County

BEGIN BUSINESS

CAPITALIZATION APPROVAL DATE

DATE

$ 9,000,000

Pending

Oglethorpe Bank 3024 Cypress Mill Road Brunswick, GA 31525 Glynn County

$ 6,000,000

Pending

Lanier Community Bank 4356 South Lee Street Buford, GA 30518 Gwinnett County

$ 10,000,000

Pending

First Commerce Community Bank 9464 Highway 5 Douglasville, GA 30135 Douglas County

$ 7,500,000

Pending

Community Capital Bank 2236 Mount Zion Road Jonesboro, GA 30236 Clayton County

$ 10,000,000

10-18-2000

08-05-2002

American Trust Bank 300 Colonial Center Parkway, Suite 150 Roswell, GA 30076 Fulton County

$ 8,000,000

Pending

Community Bank of West Georgia 662 Highway 61 Villa Rica, GA 30180 Carroll County

$ 7,000,000

Pending

PREVIOUS NAME
First Georgia Bank

FINANCIAL INSTITUTION CONVERSIONS

CONVERTED TO
First Georgia Bank Brunswick Glynn County

APPROVAL DATE
06-26-2002

EFFECTIVE DATE
08-19-2002

APPLICATIONS FOR DISSOLUTION

FINANCIAL INSTITUTION
AmTrade International Bank of Georgia Atlanta, GA 30309

APPROVAL DATE EFFECTIVE DATE
Pending

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION
SunTrust Bank Atlanta

BRANCH OFFICE
Sugar Hill Corners In-Store Branch Office 5885 Cumming Highway Buford, GA 30518 Gwinnett County

APPROVAL BEGIN BUSINESS

DATE

DATE

08-23-2002

SunTrust Bank Atlanta

Kings Ridge Branch Office 4303 U.S. Highway 27 Clermont, FL 34711 Lake County

08-23-2002

FirstCity Bank Gibson

Eagles Landing Branch Office 634 Eagles Landing Parkway Stockbridge, GA 30281 Henry County

04-04-2002

08-26-2002

Jasper Banking Company Jasper

Jasper Branch Office - Ingles #437 1449 West Church Street Jasper, GA 30143-0487 Pickens County

08-12-2002

Georgia State Bank Mableton

Austell-Powder Springs Road Branch Office 5000 Austell-Powder Springs Road Austell, GA 30106 Cobb County

08-02-2002

The Coastal Bank Savannah

Operational Services Center Branch Office 605 West Highway 80 Pooler, GA 31322 Chatham County

08-20-2002

The Coastal Bank Savannah

Rincon Branch Office 5799 Highway 21 South Rincon, GA 31326 Effingham County

02-20-2002

08-08-2002

Georgia Central Bank Social Circle

Covington Branch Office 2131 Washington Street Covington, GA 30014 Newton County

03-20-2002

08-19-2002

United Security Bank Sparta

Woodstock Branch Office 8770 South Main Street
Woodstock, GA 30188

04-09-2002

07-01-2002

Bank of Upson Thomaston
FLAG Bank Vienna
FLAG Bank Vienna
FLAG Bank Vienna
FLAG Bank Vienna
FLAG Bank Vienna
FLAG Bank Vienna

Cherokee County
Luthersville Branch Office 24 North Main Street Luthersville, GA 30251 Meriwether County
Alpharetta Branch Office 3815 Mansell Road, Suite 100 Alpharetta, GA 30022 Fulton County
Dunwoody Branch Office 1614 Mount Vernon Road Atlanta, GA 30338 Fulton County
Powers Ferry Branch Office 5430 New Northside Drive, Suite 100 Atlanta, GA 30339 Fulton County
Sandy Springs Branch Office 227 Sandy Springs Place, NE, Suite L Atlanta, GA 30328 Fulton County
Johnson Ferry Branch Office 1111 Johnson Ferry Road, Suite 100 Marietta, GA 30068 Cobb County
Lassiter Branch Office 2863 Johnson Ferry Road, Building 100 Marietta, GA 30062 Cobb County

08-19-2002 Pending Pending Pending Pending Pending Pending

FINANCIAL INSTITUTION
SunTrust Bank Atlanta

APPLICATIONS TO CHANGE LOCATION

CHANGE LOCATION OF
Clarendon Branch Office From: 3040 Clarendon Boulevard
Arlington VA 22201 Arlington County To: 2121 N. 15th Street Arlington VA 22216 Arlington County

APPROVAL DATE
08-02-2002

EFFECTIVE DATE

FINANCIAL INSTITUTION MERGERS

FINANCIAL INSTITUTION (SURVIVOR)
First State Bank of Blakely Blakely
First Bank of Gwinnett Lawrenceville

MERGED INSTITUTION
First State Bank of Donalsonville Donalsonville
Embry Bank Lawrenceville

APPROVAL EFFECTIVE

DATE

DATE

08-15-2002

Pending

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

BANK HOLDING COMPANY

TO ACQUIRE

APPROVAL DATE

FORMATIONS
Wheeler Bancshares, Inc. Alamo, GA
Generations Bancshares, Inc. Blairsville, GA
MCB Financial Group, Inc. Carrollton, GA
First Citizens Bancorporation of South Carolina, Inc. Columbia, SC

Wheeler County State Bank Alamo, GA
Generations Bank (In Organization) Blairsville, GA
McIntosh Commercial Bank (In Organization) Carrollton, GA
Citizens Bank Warrenton, GA

08-22-2002 Pending Pending Pending

ACQUISITIONS
GB&T Bancshares, Inc. Gainesville, GA
NW Services Corporation Ringgold, GA

Home Town Bank of Villa Rica Villa Rica, GA
The Bank of Sharon Sharon, TN

08-26-2002 Pending

CITY
Smyrna Tucker
Smyrna Mableton Fairburn Decatur Marietta

CHECK CASHER LICENSES ISSUED

APPLICANT NAME
1 Stop Beverage, LLC Check Station #1 Management Company, LLC El Maizal Mexican Market, Inc. Mekasha, Aster Song, Hyo K. Unique Financial Services, Inc. Westside International, Inc.

TRADE NAME
Chastain Beverage Check Station
El Maizal Mexican Market M Check Cashing Fairburn Liquor Store Unique Food Mart Taurino Store

APPROVAL OF ELECTRONIC DATA PROCESSING SERVICER

FINANCIAL INSTITUTION
FUNDS XPRESS FINANCIAL NETWORK, INC. AUSTIN, TX

APPROVAL DATE
08-16-2002

NOTICES

GEORGIA FAIR LENDING ACT QUESTIONS AND ANSWERS (Q&A)
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. You may send questions concerning this law by e-mail to gafla@dbf.state.ga.us or by regular mail or fax. The Department will publish answers on its website from time to time at the website address referenced below. The Q&A represents the Department's official interpretation of the Georgia Fair Lending Act.
The Department has compiled the second version (as of 7/30/2002) of the Q&A on the Georgia Fair Lending Act from the correspondence received to date. The Q&A is available in both MS Word and Adobe PDF and is posted on the Department's site at: http://www.state.ga.us/dbf/publications.html#GAFLA. The Georgia Fair Lending Act is available in its entirety on the State of Georgia's website at: http://www2.state.ga.us/Legis/2001_02/fulltext/hb1361.htm. You may also go to the Department's website and click on the appropriate reference in the Updates scrollbox (http://www.gadbf.org).

POLICY STATEMENT: DEBT CANCELLATION CONTRACTS
(September 9, 2002)
Financial institutions may offer Debt Cancellation Contracts or Debt Suspension Agreements to customers.
This policy statement is designed to give guidance to all Georgia state chartered financial institutions who may desire to offer their customers a product commonly known as a debt cancellation contract (DCC) or a debt suspension agreement (DSA).
Definition: This product is offered, for a fee, to a customer who has a loan obligation with the financial institution and provides that if a specified event occurs, the financial institution will cancel or suspend all or part of the amount due under the loan or credit extension agreement.
For the purposes of this policy, "financial institution" shall mean a Georgia state chartered bank (including a special purpose bank) or a Georgia state chartered credit union.
This Policy Statement, however, is limited to DCC and DSA products that are underwritten by a licensed insurer, and offered by the financial institution.
Georgia financial institutions shall be permitted to offer DCCs and DSAs as described herein to their customers, subject to the regulation of the Department. Such financial institutions will not be required to obtain a license to sell insurance.
Department of Banking and Finance Requirements:
1. Notification: No notification is required.
2. Authority: O.C.G.A. 7-1-241(c) permits the Department to issue a policy consistent with the objectives of Chapter 1 of Title 7, which may further define entities providing financial products and services and the way they interact with financial institutions. The Department believes that the third parties underwriting and offering these products to financial institutions may do so without

danger of being considered to be in the banking business. Additionally, these activities exist in the national bank arena and will further the ability of state banks to compete.
3. Interaction with Georgia Fair Lending Act: If a financial institution offers a DCC or a DSA in connection with a "Home Loan" as defined in the Georgia Fair Lending Act, no financing of single premium credit insurance (includes DCC and DSA) is permitted (O.C.G.A. 7-6A-3(1)). Periodic pay products are allowed, but care must be exercised to use a product that has been approved by the Insurance Commissioner for use with Home Loans.
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