Department of Banking and Finance bulletin, June 30, 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, COMMISSIONER

Phone: (770) 986-1633

Fax: (770) 986-1655

Internet Address: http://www.gadbf.org
June 30, 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 June 2003.

IN THIS ISSUE:
NOTICE OF PROPOSED RULEMAKING AND OPPORTUNITY TO COMMENT: JUNE 16, 2003 LICENSING OF MONEY TRANSMITTERS

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APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION

BEGIN BUSINESS

CAPITALIZATION APPROVAL DATE

DATE

Community Bank of Georgia

$ 5,000,000

Pending

692 West Parker Street

Baxley, GA 31513

Appling County

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

$ 10,000,000

10-29-2002

06-17-2003

Mountain Heritage Bank US Highway 441S and US Highway 76E 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

1st Georgia Banking Company 101 Main Street Franklin, GA 30217 Heard County

$ 14,000,000

Pending

Local Bank of Middle Georgia 532-550 N. 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, N.A.

OCC Approval

Dalton

Whitfield County

EFFECTIVE DATE 06-02-2003

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APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION BRANCH OFFICE

APPROVAL DATE

Flag Bank

Suwanee Branch Office

11/24/2000

Atlanta

3855-B John's Creek Parkway

Suwanee, GA 30024

Forsyth County

BEGIN BUSINESS DATE
Withdrawn 06-03-2003

SunTrust Bank Atlanta

Westside Village Branch Office 825 Martin Luther King, Jr., Drive, Suite C Atlanta, GA 30314 Fulton County

02-13-2003

06-30-2003

SunTrust Bank Atlanta
SunTrust Bank Atlanta
SunTrust Bank Atlanta
SunTrust Bank Atlanta
SunTrust Bank Atlanta
SunTrust Bank Atlanta 3 of 7

Loch Raven Branch Office 1610 East Joppa Road Baltimore, MD 21286 Baltimore County
University Corner Branch Office 1022 W. Main Street Charlottesville, VA 22903 Charlottesville County
Keith Bridge Branch Office 2673 Freedom Parkway Cumming, GA 30041 Forsyth County
Smith Mountain Lake Kroger In-Store Branch Office 80 Westlake Road Hardy, VA 24101 Franklin County
Brooklyn Riverside Branch Office Park & Stockton Streets Jacksonville, FL 32204 Duval County
Parkland Branch Office 5801 W. Hillsborough Boulevard Parkland, FL 33067

06-02-2003 06-16-2003 01-30-2003 Pending 06-02-2003 06-16-2003

06-23-2003

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FINANCIAL INSTITUTION Mountain State Bank Dawsonville

BRANCH OFFICE Cumming Branch Office 6080 Bethelview Road Cumming, GA 30040 Forsyth County

Horizon Bank Decatur

Sugarloaf Parkway Branch Office 6340 Sugarloaf Parkway Duluth, GA 30097 Gwinnett County

Bank of Eastman Eastman

East Greene Street Branch Office 100 East Greene Street Milledgeville, GA 31061 Baldwin County

1st Georgia Banking Company Franklin

Bremen Branch Office 102 Stone Bridge Boulevard Bremen, GA 30110 Haralson County

1st Georgia Banking Company Franklin

Carrollton Branch Office 100 Tom Reeves Drive Carrollton, GA 30117 Carroll County

The Citizens Bank Nashville

Bemiss Branch Office 4048 Bemiss Road Valdosta, GA 31605 Lowndes County

South Georgia Banking Company
Omega

Tift Avenue Branch Office
2005 Tift Avenue Tifton, GA 31794 Tift County

The Bank of Georgia Peachtree City

Kroger Glynn Street Branch Office 805 South Glynn Street Suite 117 Fayetteville, GA 30215 Fayette County

APPROVAL DATE
12-09-2002

BEGIN BUSINESS DATE
06-16-2003

12-23-2002

06-11-2003

06-23-2003

Pending

Pending

04-24-2002

04-17-2003

06-20-2003

03-28-2003

06-20-2003

APPLICATIONS FOR RESERVATION OF A NAME

PROPOSED NAME

COUNTY

APPLICANT

American Southern Bank

Fulton County

Mr. Benjamin W. Lindsey

The Bank Group

P. O. Box 591

Roswell, GA 30077

First Coweta Bank

Coweta County

Ms. Nadine Bethune Paralegal Miller & Martin, LLP 1275 Peachtree Street, 7th Floor Atlanta, GA 30309-3576

Mountain Valley Community Bank

White County

Mr. Bob Calvert Principal Calvert Consulting 710 Marshview Close Roswell, GA 30076

New Horizons Bank

Gilmer County

Mr. John W. Stephenson, Jr. Troutman Sanders LLP 600 Peachtree St., Suitre 5200 Atlanta, GA 30308-2216

FINANCIAL INSTITUTION (SURVIVOR) SunTrust Bank Atlanta

FINANCIAL INSTITUTION MERGERS

MERGED INSTITUTION

APPROVAL DATE

Lighthouse Community State Bank

06-02-2003

Hilton Head Island, SC

EFFECTIVE DATE
06-02-2003

Main Street Bank Covington

First Colony Bank Alpharetta

05-29-2003

06-23-2003

Farmers and Merchants Bank Lakeland

The United Banking Company Nashville

03-17-2003

06-27-2003

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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 GE Capital Consumer Card Co. (FSB) Mason, OH

Monogram Credit Card Bank of Georgia Atlanta, GA

06-09-2003

Alapaha Holding Company Alapaha, GA

Bank of Alapaha Alapaha, GA

Pending

Cornerstone Bancshares, Inc. Atlanta, GA

CornerstoneBank Atlanta, GA

Pending

Piedmont Bancshares, Inc. Atlanta, GA

Piedmont Bank of Georgia Atlanta, GA

Pending

Carver Financial Corporation Savannah, GA

The Carver State Bank Savannah, GA

06-26-2003

ACQUISITIONS GB&T Bancshares, Inc. Gainesville, GA

First National Bank of the South Milledgeville, GA

CITY Tifton Macon Atlanta Lawrenceville College Park

CHECK CASHER LICENSES ISSUED

APPLICANT NAME Akata, Inc.

TRADE NAME Lil' Pantry #8

Hyun, Inc.

ABC Liquor Store

Myong Hui Enterprises, Inc.

J&J Check Cashing

Parque, Yung

Check Cash Plus

Soojeong, Inc.

Sun Food Market

Pending

NOTICES
NOTICE OF PROPOSED RULEMAKING AND OPPORTUNITY TO COMMENT: JUNE 16, 2003
On June 16, 2003, the Department of Banking and Finance published a notice of proposed rulemaking to state its intent to adopt new and amended rules and to provide interested parties the opportunity to comment on the proposed rulemaking. A synopsis and purpose precedes each proposed rule, with background information and explanation where applicable.
The proposed changes are primarily in response to law changes in the Department's Housekeeping Bill, Senate Bill 78, which was signed by the Governor on June 4, 2003 and effective on July 1, 2003.
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You may view or download a copy of the proposed rules from our website at: h ttp ://www.g ad b f.o rg /p d fd o c/Sp ecialBu lletin Pro p o s ed Ru les 6-16-03.p d f
Comments must be received by July 21, 2003, at the close of business. The Department shall review all comments, may contact commenters to discuss their suggestions, and after the comment period has closed will prepare the final rules. The Department will consider the proposed new rules for adoption at a meeting at 10:00 a.m. on Monday, July 28, 2003 at the offices of the Department of Banking and Finance at Suite 200, 2990 Brandywine Road, Atlanta, Georgia 30341. Notice and a copy of the final rules adopted will be e-mailed to persons who have made a special request, or made available on our website at http://www.ganet.org/dbf.
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.
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 drafted proposed changes to its existing rules and regulations to further clarify and implement the money transmitter requirements. See the notice above regarding proposed rulemaking for further details.
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).
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. Application materials will not be available until July 28, 2003, to allow time for comments on the proposed rulemaking affecting the licensing process. 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.
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