. . . .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