Department of Banking and Finance bulletin, May 31, 2003

. . . .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.gadbf.org
May 31, 2003 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 May 2003.
IN THIS ISSUE:
POLICY STATEMENT ON USE OF DEBT CANCELLATION CONTRACTS (DCCs) AND DEBT SUSPENSION AGREEMENTS (DSAs) LICENSING OF MONEY TRANSMITTERS

1 of 8

APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION Midtown Bank & Trust Company 712 West Peachtree Street Atlanta, GA 30308 Fulton County

CAPITALIZATION APPROVAL DATE

$ 10,500,000

05-27-2003

BEGIN BUSINESS DATE

Community Bank of Georgia 692 West Parker Street Baxley, GA 31513 Appling County

$ 5,000,000

Pending

Mountain Heritage Bank US Highway 441 South and US Highway 76 East Clayton, GA 30525 Rabun County

$ 7,000,000

Pending

Freedom Bank of Georgia 3165 Maysville Road Commerce, GA 30329 Jackson County

$ 7,500,000

Pending

Local Bank of Middle Georgia 532-550 North Davis Drive Warner Robins, GA 31093 Houston County

$ 6,000,000

Pending

PREVIOUS NAME Dalton Whitfield Bank

FINANCIAL INSTITUTION CONVERSIONS

CONVERTED TO

APPROVAL DATE

FSG Bank, NA

Pending

Dalton

Whitfield County

EFFECTIVE DATE

Fidelity National Bank

Fidelity Bank Norcross Gwinnett County

04-16-2003

05-09-2003

2 of 8

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION

BRANCH OFFICE

APPROVAL DATE

SunTrust Bank

Windward Parkway West Branch Office

01-30-2003

Atlanta

Windward Parkway & Westfield Drive

Alpharetta, GA 30004

Fulton County

BEGIN BUSINESS DATE
05-29-2003

SunTrust Bank Atlanta

Loch Raven Branch Office 1610 East Joppa Road Baltimore, MD 21286 Baltimore County

Pending

SunTrust Bank Atlanta

Braemar Safeway In-Store Branch Office 12821 Braemar Village Plaza Bristow, VA 20136 Prince William County

05-05-2003

SunTrust Bank Atlanta

Brooklyn Riverside Branch Office Park & Stockton Streets Jacksonville, FL 32204 Duval County

Pending

SunTrust Bank Atlanta

West Cobb Branch Office 2600 Dallas Highway, SW Marietta, GA 30064 Cobb County

01-30-2003

05-27-2003

SunTrust Bank Atlanta

1275 K Street Branch Office 1275 K Street, NW Washington, DC 20005

05-05-2003

Community Bank & Trust Cornelia

Kroger Store #416 Branch Office 7380 Spout Springs Road Flowery Branch, GA 30542 Hall County

05-20-2003

Main Street Bank Covington

Royal Boulevard Branch Office 3060 Royal Boulevard, South Royal 400 Court II Alpharetta, GA 30022-1405 Fulton County

03-19-2003

05-01-2003

Main Street Bank Covington
3 of 8

Lawrenceville-Suwanee Branch Office 850 Lawrenceville-Suwanee Road Lawrenceville, GA 30043 Gwinnett County

02-20-2003

05-19-2003

FINANCIAL INSTITUTION Chestatee State Bank Dawsonville
Citizens Bank & Trust Company Eastman
Southern Community Bank Fayetteville
FirstCity Bank Gibson
Community Trust Bank Hiram
Talbot State Bank Woodland
PREVIOUS NAME Bank of Gray Gray C-MAR Credit Union Marietta

BRANCH OFFICE Keith Bridge Commons Branch Office 2675 Freedom Parkway Cumming, GA 30041 Forsyth County
Helena Branch Office 107 8th Street Helena, GA 31037 Telfair County
Peachtree City Branch Office 1500 Commerce Drive Peachtree City, GA 30269 Fayette County
Towne Centre Branch Office 1971 Jonesboro Road McDonough, GA 30253 Henry County
East Paulding Branch Office 51 East Paulding Highway Dallas, GA 30157 Paulding County
Fayetteville Branch Office 710 North Glynn Street Fayetteville, GA 30214 Fayette County
NOTICE OF CHANGE IN NAME
NEW NAME Security Bank of Jones County
CMAR Credit Union

APPROVAL DATE
01-31-2002

BEGIN BUSINESS DATE
05-22-2003

10-23-2000

05-05-2003

04-01-2002

05-15-2003

11-08-2002

05-19-2003

05-07-2003

05-15-2003

APPROVAL DATE
05-30-2003

EFFECTIVE DATE
05-30-2003

05-01-2003 05-02-2003

4 of 8

PROPOSED NAME Homeland Bank

APPLICATIONS FOR RESERVATION OF A NAME

COUNTY

APPLICANT

DeKalb County

Ms. Lyn G. Schroeder, Attorney

Powell Goldstein Frazer & Murphy

191 Peachtree Street NE, 16th Floor

Atlanta, GA 30303

Homeland Bank of DeKalb County

DeKalb County

Ms. Lyn G. Schroeder, Attorney Powell Goldstein Frazer & Murphy 191 Peachtree Street NE, 16th Floor Atlanta, GA 30303

Homeland Bank of Gwinnett County

DeKalb County

Ms. Lyn G. Schroeder, Attorney Powell Goldstein Frazer & Murphy 191 Peachtree Street NE, 16th Floor Atlanta, GA 30303

Physicians Bank

Fulton County

Mr. Eric A. Koontz, Attorney Troutman Sanders LLP 600 Peachtree Street, Suite 5200 Atlanta, GA 30308-2216

FINANCIAL INSTITUTION (SURVIVOR) United Community Bank Blairsville

FINANCIAL INSTITUTION MERGERS
MERGED INSTITUTION First Georgia Bank Brunswick

APPROVAL DATE
03-03-2003

EFFECTIVE DATE
05-01-2003

Main Street Bank Covington

First Colony Bank Alpharetta

05-29-2003

5 of 8

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

BANK HOLDING COMPANY Piedmont Bancshares, Inc. Atlanta, GA

FORMATIONS ONLY
TO ACQUIRE Piedmont Bank of Georgia Atlanta, GA

APPROVAL DATE Pending

Central Georgia Banking Company Cochran, GA

State Bank of Cochran Cochran, GA

05-08-2003

Alliance Bancshares, Inc. Dalton, GA

Alliance National Bank Dalton, GA

05-23-2003

American Trust Bancorp Roswell, GA

American Trust Bank (In Organization) Roswell, GA

05-07-2003

Carver Financial Corporation Savannah, GA

The Carver State Bank Savannah, GA

Pending

FINANCIAL INSTITUTION DolEx Dollar Express, Inc. Arlington, TX 76015

APPLICATIONS FOR NEW SALE OF CHECK
APPROVAL DATE 05-29-2003

EFFECTIVE DATE 05-29-2003

CITY Macon Dahlonega Atlanta Lilburn Douglasville Decatur Clarkston

CHECK CASHER LICENSES ISSUED

APPLICANT NAME

TRADE NAME

Assad, John

Z's Package Store

Check Exchange, LLC

Check Exchange

Cheers & Goodies, Inc.

Cheers, Beer & Wine

Ho, Tam

Tam Ho Check Cashing

KM Check Cashing

KM Check Cashing

Kim, Chan Ung

J's Food Mart

Young's Super Market, Inc.

L. C. Beverage Store

APPROVAL OF ELECTRONIC DATA PROCESSING SERVICER

FINANCIAL INSTITUTION

APPROVAL DATE

Certegy E-Banking Services, Inc.

05-15-2003

St. Petersburg, FL

6 of 8

NOTICES
Policy Guidance on the use of Debt Cancellation Contracts (DCCs) and Debt Suspension Agreements (DSAs) by Georgia State-chartered Financial Institutions Pending Formal Rulemaking
As of June 10, 2003, State chartered financial institutions may market, sell and underwrite debt cancellation contracts and debt suspension agreements. The Department intends to issue proposed rulemaking on this subject within one week, but the Commissioner has deemed this power to be financial in nature and therefore, subject to this policy guidance, state banks and credit unions may begin this activity and it will not be deemed sale of insurance.
What are Debt Cancellation Contracts (DCCs) and Debt Suspension Agreements (DSAs)?
A Debt Cancellation Contract is a contractual agreement modifying loan terms that is linked to a bank or credit union's extension of credit, under which the bank or credit union agrees to cancel all or part of a customer's obligation to repay an extension of credit from that financial institution upon the occurrence of a specified event.
A Debt Suspension Agreement is a contractual agreement that modifies loan terms that is linked to an extension of credit, wherein the financial institution agrees to suspend all or part of a customer's obligation to repay an extension of credit upon the occurrence of some specified event.
Typically these products are tied to the life, injury or disability of the borrower, although some products are based on the occurrence of some other specified event, such as termination of employment.
To access the full Policy Statement, go to: http://www.ganet.org/dbf/pdfdoc/DCCDSAPolicy.pdf. This Policy Statement rescinds the previous statement which was published in our September 2002 Monthly Bulletin and is currently detailed in the Department's Statement of Policies Manual (February 2003 version).
LICENSING OF MONEY TRANSMITTERS
ARTICLE 4 OF CHAPTER 1 OF TITLE 7 SALE OF CHECKS OR MONEY ORDERS
During the 2003 legislative session, the Department proposed and the Georgia legislature passed Senate Bill 78 that, among other things, implements licensing requirements for money transmitters (Sections 7-1-680 through 7-1-689.1 of the Official Code of Georgia). The bill will become effective on 7/1/2003.
Since September 11th, federal law enforcement agencies (FBI, FinCEN) have urged states to license and keep a record of persons transmitting money or monetary value. The bill passed in 2003 revises the above Code Sections to establish a requirement for licensing, background checks and a bond for money transmitters. The Department may but is not required to examine these entities. The Department is in the process of drafting changes to its existing rules and regulations to further clarify and implement the money transmitter requirements.
Licensing Requirements
The implementation of licensing requirements for money transmitters gives the Department the authority to regulate companies that are receiving money for transmission, particularly transmission abroad, and to establish a minimum level of financial responsibility for all entities engaging in the business of receiving money for transmission without regard to the method of tran s mis s io n .
In order to engage in money transmission in Georgia, the revised law will require that a person must first obtain a license under the Sale of Check Act (Act). Money transmitters that obtain a license pursuant to O.C.G.A. Title 7, Article 4 are also permitted to engage in check cashing without obtaining a separate license for those activities since the licensing requirements for money transmission are greater than for check cashing. The reverse is not true. A licensed check casher may not engage in money transmission on its own behalf without first obtaining an Article 4 license.
7 of 8

Every person engaged in money transmission activities in Georgia at the time of the effective date of the Act's revision shall file an application in accordance with the provisions of this Act within three months after July 1, 2003. No person shall be deemed to be in violation of the Act for operating without a license if such person files an application within such three-month period, unless and until such application is denied. Persons currently licensed to sell or issue checks or money orders need not apply to conduct money transmission activities, but should notify the Department in writing within the three-month period referenced above if they are conducting money transmission activities. The new licensing requirements refer to money transmission activities that take place in Georgia, whether transmitted within the U.S. or abroad. If a person is receiving money for transmission on behalf of another person or persons, they will need to be licensed. If a person were sending money for their own behalf, they would not need to be licensed. Timing of Application Submission The Department is in the process of preparing application material and other important information that will assist applicants in applying for a license to engage in money transmission activities. These materials will not be available until July 1, 2003. As noted above, applicants will have a three-month "grace period" in which to apply without being in violation of the law. Check our website from time to time for new information about the money transmitter licensing process. Once the application materials are available, they will be posted at the following site: http://www.ganet.org/dbf/other_forms.html.
BACK TO TOP
8 of 8