Department of Banking and Finance bulletin, July 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, COMMISSIONER

Phone: (770) 986-1633

Fax: (770) 986-1655

Internet Address: http://www.gadbf.org/

July 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 July 2003.

IN THIS ISSUE:
NOTICE OF FINAL RULEMAKING EFFECTIVE AUGUST 17, 2003
ATTORNEY GENERAL OFFICIAL OPINION 2003-8 DATED JULY 31, 2003
ZURICH CREDIT UNION - ENTITY UNAUTHORIZED TO DO BUSINESS IN THE STATE OF GEORGIA

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APPLICATIONS FOR NEW FINANCIAL INSTITUTION

FINANCIAL INSTITUTION Northwest Bank & Trust

CAPITALIZATION APPROVAL DATE BEGIN BUSINESS

$ 10,000,000

Pending

3891 Cobb Parkway

Acworth, GA 30101

Cobb County

Georgia Commerce Bank 3625 Cumberland Boulevard, SE, Building 2 Atlanta, GA 30339 Cobb County

$ 12,000,000

12-09-2002

07-01-2003

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

$ 5,500,000

Pending

Mountain Heritage Bank US Highway 441S and US Highway 76E Clayton, GA 30525 Rabun County

$ 8,500,000

07-03-2003

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

$ 7,500,000

07-01-2003

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

$ 14,000,000

Pending

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

$ 6,000,000

Pending

FINANCIAL INSTITUTION CONVERSIONS

PREVIOUS NAME Frontier Bank, National Association

CONVERTED TO Frontier Bank

APPROVAL DATE Pending

LaGrange

Troup County

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EFFECTIVE DATE

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

FINANCIAL INSTITUTION Integrity Bank Alpharetta

BRANCH OFFICE Roswell Branch Office 900 Woodstock Road

APPROVAL DATE
05-31-2002

Roswell, GA 30075

Fulton County

BEGIN BUSINESS DATE
07-14-2003

SunTrust Bank Atlanta

Gateway Village Safeway Branch Office 2635 Housley Road Annapolis, MD 21401 Anne Arundel County

06-04-2002

06-19-2002

SunTrust Bank Atlanta

Greenspring Branch Office 2825 Smith Avenue Baltimore, MD 21209 Baltimore County

04-10-2003

07-21-2003

SunTrust Bank Atlanta

South Brandon Branch Office Causeway Boulevard & East/West Collector Road Brandon, FL 33511 Hillsborough County

Pending

SunTrust Bank Atlanta

Smith Mountain Lake Kroger In-Store Branch Office 80 Westlake Road Hardy, VA 24101 Franklin County

07-07-2003

SunTrust Bank Atlanta

Hunt Valley Branch Office 124 Shawan Road Hunt Valley, MD 21030 Baltimore County

03-31-2003

07-07-2003

SunTrust Bank Atlanta

Atlantic Woods Branch Office Atlantic Boulevard & Girvin Road Jacksonville, FL 32225 Duval County

Pending

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FINANCIAL INSTITUTION SunTrust Bank Atlanta

BRANCH OFFICE Perry Hall Square Branch Office 4310 Ebenezer Road
Perry Hall, MD 21236 Baltimore County

SunTrust Bank Atlanta

Fallsgrove Safeway In-Store Branch Office 14939 Shady Grove Road Rockville, MD 20850 Montgomery County

SunTrust Bank Atlanta

Boyette Branch Office Boyette Road & McMullen Loop Road Tampa, FL 33614 Hillsborough County

SunTrust Bank Atlanta

Harbour Island Branch Office 800 South Harbour Island Boulevard Tampa, FL 33602 Hillsborough County

SunTrust Bank Atlanta

Towne Lake Branch Office 1450 Towne Lake Parkway Woodstock, GA 30189 Cherokee County

Community Bank & Trust Cornelia

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

First Bank of Dalton Dalton

Cleveland Highway Branch Office 2518 Cleveland Highway, Suite 15 Dalton, GA 30721 Whitfield County

1st Georgia Banking Company Franklin

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

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APPROVAL DATE
04-29-2003

BEGIN BUSINESS DATE
07-01-2003

06-25-2002

10-02-2002

Pending

07-17-2003

01-30-2003

07-07-2003

05-20-2003

07-17-2003

04-09-2003

07-21-2003

Pending

FINANCIAL INSTITUTION 1st Georgia Banking Company
Franklin

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

APPROVAL DATE
Pending

BEGIN BUSINESS DATE

Talbot State Bank Woodland

Fayetteville Branch Office 710 North Glynn Street Fayetteville, GA 30214 Fayette County

05-15-2003

07-01-2003

FINANCIAL INSTITUTION SunTrust Bank
Atlanta

APPLICATIONS TO CHANGE LOCATION

CHANGE LOCATION OF Plaza East Branch Office From: 500 Main Plaza East Norfolk VA 23510 To: 150 West Main Street Norfolk VA 23510

APPROVAL DATE 07-17-2003

EFFECTIVE DATE

The Peachtree Bank Duluth

Sugar Hill Branch Office From: 1400 Buford Highway, Suite E-4
Sugar Hill GA 30518 Gwinnett County To: Lawrenceville Branch Office 185 Gwinnett Drive Lawrenceville GA 30045 Gwinnett County

04-09-2003

07-21-2003

APPLICATIONS FOR RESERVATION OF A NAME

PROPOSED NAME First Cherokee Bank and Trust Company

COUNTY Cherokee County

APPLICANT Mr. Gary Pannell Miller, Hamilton, Snider

100 Colony Square, Suite 1920

Atlanta, GA 30361

Frontier Bank

Troup County

Steven J. Eisen, Esq Baker, Donelson, Bearman 211 Commerce Street, Suite 1000 Nashville, TN 37201

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FINANCIAL INSTITUTION (SURVIVOR) The Heritage Bank
Hinesville

FINANCIAL INSTITUTION MERGERS
MERGED INSTITUTION Cumberland National Bank St. Marys

APPROVAL EFFECTIVE

DATE

DATE

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
Alapaha Holding Company Alapaha, GA

Bank of Alapaha Alapaha, GA

07-10-2003

Cornerstone Bancshares, Inc. Atlanta, GA

CornerstoneBank Atlanta, GA

07-10-2003

Piedmont Bancshares, Inc. Atlanta, GA

Piedmont Bank of Georgia Atlanta, GA

Pending

ACQUISITIONS
GB&T Bancshares, Inc. Gainesville, GA

First National Bank of the South Milledgeville, GA

07-14-2003

Liberty Shares, Inc. Hinesville, GA

Cumberland National Bank St. Marys, GA

Pending

APPLICATIONS FOR NEW SALE OF CHECK

FINANCIAL INSTITUTION
Golden Pantry Food Stores, Inc.

APPROVAL DATE Pending

EFFECTIVE DATE

Bogart, GA 30622

CHECK CASHER LICENSES ISSUED

CITY Dublin
Atlanta

APPLICANT NAME A&A Package Shop, Inc.
CashWorks, Inc.

TRADE NAME Bob's Package Shop
CashWorks

Duluth

Chang, Jung Seo

J Food Mart

Acworth

Chon, Young Duk

S&H Mart/Citgo Gas

Clarkston Atlanta

Conwell William, LLC Culberson Enterprises, Inc.

Check Pointe Blair Village Pawn Shop

Savannah

Frawley, Mitchell O'Neal

Adler's Package Shop

Atlanta Conyers

HM Global, Inc. Kim, Myung Sick

G.O. Grocery Max General

Atlanta

P & K Investment Group, Inc.

Little 5 Points Package Store

Forest Park
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Star Check Cashing, Inc.

Star Check Cashing

NOTICES
NOTICE OF FINAL RULEMAKING EFFECTIVE AUGUST 17, 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. The comment period ended July 21, 2003. The 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.
Notice is hereby given that pursuant to the authority granted to it in O.C.G.A. 7-1-61 and 7-1-1012, and others, and according to the provisions of the Georgia Administrative Procedures Act, O.C.G.A. 50-13-1 et. seq., the rules of the Department of Banking and Finance have been finally adopted on July 28, 2003. They were filed with the Secretary of State on July 28, 2003, and will be effective August 17, 2003.
You may view or download a copy of the final rules from our website at: http://www.gadbf.org/pdfdoc/FinalRules072803.pdf
ATTORNEY GENERAL OFFICIAL OPINION 2003-8 DATED JULY 31, 2003
On July 31, 2003, Attorney General Thurbert E. Baker issued an official opinion concerning whether or not an origination fee charged to a borrower on a non real estate loan of under $3,000 is considered to be interest. The opinion concluded that an origination fee will not be prepaid interest, provided it is not based on the time value of money, but rather the lender is providing a service for which the charge is assessed and provided the charge bears a reasonable relationship to the cost of providing the service. This answer was in response to one of a series of questions posed to the Attorney General by this Department. Other answers expected soon include a question about overdraft protection programs.
Go to the Attorney General's website to review the opinion in its entirety: http://www.state.ga.us/ago/read.cgi?searchval=origination%20fee&openval=03-8
ZURICH CREDIT UNION - ENTITY UNAUTHORIZED TO DO BUSINESS IN THE STATE OF GEORGIA
Be advised that ZURICH CREDIT UNION (Zurich) which allegedly has an address of 905 Hays Mill Road, Carrollton, GA is not a credit union authorized to do business in the State of Georgia. Effective August 1, 2003, a Cease and Desist Order was issued against this entity directing them to do the following:
1. Immediately cease indicating in any Internet website, marketing materials, signage, correspondence or legal documentation that
could reach Georgia consumers that this entity is a credit union and that it is authorized to do business in the State of Georgia.
2. Cease using the term "Credit Union", "Bank", "Banker", "Banking House" or any similar terminology in reference to activities
conducted in the State of Georgia.
3. Zurich shall not provide financial products or services to the citizens of this State by any delivery system, to include the Internet,
or other electronic methods of delivery.
4. If Zurich Credit Union is a credit union licensed or chartered in a foreign country, it may not transact a banking business or
maintain an office in this State without the authorization of the Department of Banking and Finance in accordance with Section 71-713 of the Code of Georgia.
5. Representatives of this entity shall respond to the Department by not later than August 5, 2003 indicating the actions taken to
comply with the provisions of this Order.
If any Georgia Citizens believe that this entity has violated any provisions of the Cease and Desist Order after the effective date of the Order (August 1, 2003) you are encouraged to contact the Department in writing at: 2990 Brandywine Road, Suite 200, Atlanta, GA 30341-5565. Please direct these inquiries and any other questions concerning these issues to Deputy Commissioner for Supervision Grace M. Lurry.
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