Inside this issue: Agencies Issue Final 2 Rules on Affiliate Marketing Department 2 Receives Work Away Program Champion Award DBF Outreach and 2 Upcoming Speaking Engagements Governor Honors 3 State Employees for Excellence in Customer Service 2008 State Holidays 4 Action on 5 Applications for the Month of October News and topics of interest to financial institutions regulated by the Department of Banking and Finance Monthly Bulletin #10 October 2007 Agencies Issue Final Rules on Identity Theft Red Flags and Notices of Address Discrepancy On October 31, 2007, the federal financial institution regulatory agencies and the Federal Trade Commission announced that they have sent to the Federal Register for publication final rules on identity theft "red flags" and address discrepancies. The final rules implement sections 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003. The final rules require each financial institution and creditor that holds any consumer account, or other account for which there is a reasonably foreseeable risk of identity theft, to develop and implement an Identity Theft Prevention Program (Program) for combating identity theft in connection with new and existing accounts. The Program must include reasonable policies and procedures for detecting, preventing, and mitigating identity theft and enable a financial institution or creditor to: Identify relevant patterns, practices, and specific forms of activity that are "red flags" signaling possible identity theft and incorporate those red flags into the Program; Detect red flags that have been incorporated into the Program; Respond appropriately to any red flags that are detected to prevent and mitigate identity theft; and Ensure the Program is updated periodically to reflect changes in risks from identity theft. The agencies also issued guidelines to assist financial institutions and creditors in developing and implementing a Program, including a supplement that provides examples of red flags. The final rules also require credit and debit card issuers to develop policies and procedures to assess the validity of a request for a change of address that is followed closely by a request for an additional or replacement card. In addition, the final rules require users of consumer reports to develop reasonable policies and procedures to apply when they receive a notice of address discrepancy from a consumer reporting agency. The final rulemaking is issued by the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the Federal Trade Commission, the National Credit Union Administration, the Office of the Comptroller of the Currency, and the Office of Thrift Supervision. The final rules are effective on January 1, 2008. Covered financial institutions and creditors must comply with the rules by November 1, 2008. Read the Interagency Final Rule Regarding Identity Theft Red Flags and Address Discrepancies under Section 114 and 315 of the Fair and Accurate Credit Transactions Act of 2003 - PDF "Safeguarding Georgia's Financial Services" Page 2 Agencies Issue Final Rules on Affiliate Marketing The federal financial regulatory agencies have issued final rules that provide consumers with an opportunity to "opt out" before a financial institution uses information provided by an affiliated company to market its products and services to the consumer. The final rules on affiliate marketing implement section 214 of the Fair and Accurate Credit Transactions Act of 2003, which amends the Fair Credit Reporting Act (FCRA). These final rules generally prohibit a financial institution from using certain information received from an affiliate to make a solicitation to a consumer unless the consumer is given notice and a reasonable opportunity to opt out of such solicitations, and the consumer does not opt out. The final rules apply to information obtained from the consumer's transactions or account relationships with an affiliate, any application the consumer submitted to an affiliate, and third-party sources, such as credit reports, if the information is to be used to send marketing solicitations. Nothing in the final rules supersedes or amends a consumer's existing right to opt out of the sharing of non-transaction or experience information under section 603(d) of the FCRA. The final rules also implement the statutory exceptions to the affiliate marketing notice and opt-out requirement. The appendix to the final rules contains model forms to facilitate compliance with the notice and opt-out requirement. The final rules are effective on January 1, 2008. All covered entities must comply with the rules no later than October 1, 2008. Substantially similar rules will be issued separately by the Federal Trade Commission and the Securities and Exchange Commission. The Federal Register notice can be found at Fair Credit Reporting Affiliate Marketing Regulations. Department Receives Work Away Program Champion Award The Department was one of seventeen agencies awarded the "Work Away Program Champion Award." The award is presented by the State Personnel Administration to agencies that are consistent in achieving monthly goals and reliable in reporting on a timely basis. Accepting the award for the Department of Banking and Finance was Personnel Officer Marilyn Harris. Personnel Officer Marilyn Harris Work Away is a statewide initiative that encourages telework and work scheduling options for eligible employees. Both telework and scheduling options have been shown to result in better job performance, improved job satisfaction and employee morale, and a reduction in absenteeism and sick leave usage. Work Away options also help retain valued employees and recruit top quality people while "Improving the Quality of Life for All Georgians." DBF OUTREACH AND UPCOMING SPEAKING ENGAGEMENTS Commissioner Braswell will be part of a Regulators Panel during the GBA Credit Conference being held at the Cobb Galleria on November 28th. Page 3 Governor Honors State Employees for Excellence in Customer Service On October 30, 2007, Governor Sonny Perdue announced the winners of state government's Excellence in Customer Service Awards for 2007. Six individuals and eight teams were recognized in a ceremony held at the Georgia World Congress Center. First-year winners in the Team Georgia Customer Service Recognition Program were selected from among more than 400 nominations across Georgia. Individuals were to demonstrate helpful, courteous and knowledgeable service to citizens. Team winners dramatically shortened process time or responded quickly to customers. Awards were also given for Employee of the Year, Team of the Year, Call Center Excellence, Leadership and Agency of the Year. Nominees were judged by a blue ribbon panel of leaders from the business community and the public sector. "The range of exceptional nominations from all state services and all parts of the state is impressive," said committee chair Carl E. Swearingen, Chairman, State Board, Technical College System of Georgia. Georgia is setting high benchmarks for customer satisfaction that mean better service, reduced costs and long term benefits for all." The Department accepted two awards, one individual and one team: Mark Simpson, Consumer Affairs Specialist in the Department's Legal and Consumer Affairs Division received an individual award for demonstrating outstanding service to the citizens of Georgia over the last year. His actions reflect all five of the state's customer service attributes: COURTEOUS, HELPFUL, ACCESSIBLE, RESPONSIVE, and KNOWLEDGEABLE. (Pictured from left to right: State Chief Financial Officer Tommy Hills, Consumer Specialist Mark Simpson, and State Chief Operating Officer Jim Lientz) The Legal and Consumer Affairs Division also received one of the Governor's Awards in Customer Service for Team Excellence. This is awarded to those teams who have demonstrated outstanding service to the customers of the state of Georgia over the last year. "Part of making Georgia the best managed state is improving customer service and recognizing those employees who provide it," said Governor Sonny Perdue. "These awards highlight exemplary employees and their commitment to changing processes and attitudes to provide faster, friendlier, and easier service for the citizens of Georgia. Those recognized here represent scores of others who have found ways to produce and measure results." (Pictured from left to right: State Chief Financial Officer Tommy Hills, Deputy Commissioner for Legal and Consumer Affairs Judy Newberry (accepting the award for the Legal and Consumer Affairs Team), and State Chief Operating Officer Jim Lientz) (All award winners pictured with Governor Perdue) Page 4 2008 State Holidays In accordance with O.C.G.A. 1-4-1, Governor Sonny Perdue proclaimed the following dates as public and legal holidays for the year 2008. Financial Institutions may observe both the official observance day as well as alternative observances indicated. In addition to these designated dates, financial institutions may close on Sunday and one discretionary day each week. If the discretionary day observed is changed permanently or temporarily, customer notice must be posted at least 30 days in advance. Holiday: New Year's Day Robert E. Lee's Birthday Martin Luther King Jr. Day Washington's Birthday Confederate Memorial Day Memorial Day Independence Day Labor Day Columbus Day Veterans' Day Thanksgiving Day Christmas Day Observed: Tuesday, January 1 Saturday, January 19 - will be observed on Friday, November 28 Monday, January 21 Monday, February 18 - will be observed on Friday, December 26 Monday, April 28 Monday, May 26 Friday, July 4 Monday, September 1 Monday, October 13 Tuesday, November 11 Thursday, November 27 Thursday, December 25 Page 5 Action on Applications for the Month of October: 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 October 2007. APPLICATIONS FOR NEW FINANCIAL INSTITUTION FINANCIAL INSTITUTION Resurgens Bank 2300 Henderson Mill Road Atlanta, GA 30345 DeKalb County CAPITALIZATION $ 12,250,000 APPROVAL Pending BEGIN BUSINESS Georgia Primary Bank 3880 Roswell Road Atlanta, GA 30342 Fulton County $ 18,045,060 02-27-2007 10-22-2007 Independence Bank of Georgia Highway 211 and Thompson Mill Road Braselton, GA 30517 Barrow County $ 18,000,000 Pending NOA Bank 3805 Buford Highway Duluth, GA 30096 Gwinnett County $ 15,000,000 Pending KeyWorth Bank 11655 Medlock Bridge Road Duluth, GA 30097 Fulton County $ 36,000,000 05-22-2007 10-15-2007 Milltown Banking Company 305 East Main Street Lakeland, GA 31635 Lanier County $ 10,000,000 Pending Regional Bank of Middle Georgia 3966 Pio Nono Avenue Macon, GA 31206 Bibb County $ 8,000,000 Pending First Milton Bank 13920 Cumming Highway, Suite 140 Milton, GA 30004 Fulton County $ 16,250,000 Pending Verity Bank 94 West Athens Street Winder, GA 30680 Barrow County $ 15,700,000 10-03-2007 Page 6 PREVIOUS NAME Emory Federal Credit Union Lockheed Georgia Employees Federal Credit Union FINANCIAL INSTITUTION CONVERSIONS CONVERTED TO Emory Alliance Credit Union Decatur DeKalb County APPROVAL EFFECTIVE 09-11-2007 10-15-2007 LGE Community Credit Union Marietta Cobb County Pending APPLICATIONS TO ESTABLISH A BRANCH OFFICE FINANCIAL INSTITUTION Montgomery Bank & Trust Ailey BRANCH OFFICE Kingsland Branch Office Marsh Harbour Parkway Kingsland, GA 31548 Camden County APPROVAL 10-23-2007 BEGIN BUSINESS HeritageBank of the South Albany College Road Branch Office 4726 SW College Road Ocala, FL 34481 Marion County 10-26-2007 HeritageBank of the South Albany East Silver Springs Boulevard Branch Office 1409 East Silver Springs Boulevard Ocala, FL 34481 Marion County 10-26-2007 Bank of North Georgia Alpharetta Sandy Springs Branch Office 280 Sandy Springs Circle NE Sandy Springs, GA 30328 Fulton County 07-19-2007 10-22-2007 SunTrust Bank Atlanta Governor's Towne Club Branch Office 4386 Cobb Parkway Acworth, GA 30101 Cobb County 08-30-2007 10-01-2007 SunTrust Bank Atlanta Pablo Creek Branch Office 13728 Beach Boulevard Jacksonville, FL 32224 Duval County 08-27-2007 10-22-2007 SunTrust Bank Atlanta Connerton Branch Office 7830 Land O Lakes Boulevard Land O Lakes, FL 34638 Pasco County 10-01-2007 SunTrust Bank Atlanta Coosaw Creek Branch Office 8610 Dorchester Road North Charleston, SC 29418 Charleston County 08-27-2007 10-29-2007 FINANCIAL INSTITUTION SunTrust Bank Atlanta BRANCH OFFICE Suncoast Crossings Branch Office 16116 State Road 54 Odessa, FL 33556 Pasco County Eastside Commercial Bank Conyers Duluth Branch Office 2905 Premier Parkway, Suite 150 Duluth, GA 30097 Gwinnett County First Choice Community Bank Dallas West Metro Branch Office 68 First National Drive Dallas, GA 30157 Paulding County KeyWorth Bank Duluth Haynes Bridge Village Branch Office 9925 Old Alabama Road Alpharetta, GA 30022 Fulton County The Brand Banking Company Lawrenceville Sugarloaf Branch Office 6225 Sugarloaf Parkway Suite 100 Duluth, GA 30096 Gwinnett County Atlantic Southern Bank Macon Jacksonville Branch Office 13474 Atlantic Boulevard Jacksonville, FL 32225 Duval County First Coweta Bank Newnan Hogansville Branch Office 2000 Billy Tucker Circle Hogansville, GA 30230 Troup County The Bank of Georgia Peachtree City Summit Branch Office 10 Baynard Park Newnan, GA 30265 Coweta County River City Bank Rome Carrollton Branch Office 2115 Maple Street Carrollton, GA 30117 Carroll County First Choice Community Bank 1874 Douglasville Branch Office Senoia 6559 East Church Street Douglasville, GA 30134 Douglas County Page 7 APPROVAL 09-10-2007 BEGIN BUSINESS 10-15-2007 05-08-2007 10-01-2007 Pending 05-22-2007 10-15-2007 04-30-2007 10-17-2007 Pending 08-21-2007 10-29-2007 02-15-2007 10-01-2007 09-12-2007 10-23-2007 Pending Page 8 APPLICATIONS TO CHANGE LOCATION FINANCIAL INSTITUTION SunTrust Bank Atlanta CHANGE LOCATION OF Spartanburg Main Branch Office From: 453 East Henry Street Spartanburg SC 29302 Spartanburg County To: 350 East Henry Street Spartanburg SC 29302 Spartanburg County APPROVAL 10-19-2007 Habersham Bank Clarkesville Warrenton Branch Office From: 456 Main Street Warrenton GA 30828 Warren County To: 189 Legion Drive Warrenton GA 30828 Warren County 05-09-2007 Douglas County Bank Douglasville Stewart Parkway Branch Office From: 7421 Douglas Boulevard Douglasville GA 30135 Douglas County To: 6100 Stewart Parkway Douglasville GA 30135 Douglas County 03-09-2007 Heritage Bank Jonesboro Eagles Landing Parkway Branch Office From: 1040 Eagles Landing Parkway Stockbridge GA 30281 Henry County To: 830 Eagles Landing Parkway Stockbridge GA 30281 Henry County 10-26-2007 EFFECTIVE 10-01-2007 10-15-2007 APPLICATIONS FOR RESERVATION OF A NAME PROPOSED NAME Chattahoochee Bank of Georgia COUNTY Hall County APPLICANT Mr. John B. Kline, President P.O. Box 418 Decatur, GA 30031 First IC Interim Bank DeKalb County Mr. J. Curry Woods Troutman Sanders LLP Bank of America Plaza 600 Peachtree Street, N.E., Suite 5200 Atlanta, GA 30308-2216 Morris Bank Laurens County Ms. Ashlee Torpy, Chief Financial Officer Morris State Bank P.O. Box 520 Dublin, GA 31021-0520 Page 9 PROPOSED NAME Paces Bank Pooler State Bank COUNTY Fulton County Chatham County APPLICANT Mr. Byron Richardson, President Bank Resources, Inc. 2451 Cumberland Parkway, Suite 3618 Atlanta, GA 30339 Mr. Byron Richardson, President Bank Resources, Inc. 2451 Cumberland Parkway, Suite 3618 Atlanta, GA 30339 FINANCIAL INSTITUTION (SURVIVOR) The Buckhead Community Bank Atlanta, GA Atlantic Southern Bank Macon, GA Memorial Health Credit Union Savannah, GA FINANCIAL INSTITUTION MERGERS MERGED INSTITUTION First National Bank of Forsyth County Cumming, GA CenterState Bank Mid Florida Leesburg, FL Health Employees Chatham County Credit Union Savannah, GA APPROVAL EFFECTIVE Pending Pending Pending APPLICATIONS TO BECOME A BANK HOLDING COMPANY AND/OR TO ACQUIRE VOTING STOCK OF A FINANCIAL INSTITUTION BANK HOLDING COMPANY TO ACQUIRE APPROVAL FORMATIONS NorthWest Bancshares, Inc. Acworth, GA NorthWest Bank & Trust Acworth, GA 10-19-2007 ACQUISITIONS Atlantic Southern Financial Group, Inc. Macon, GA Security Bank Corporation Macon, GA CenterState Bank Mid Florida Leesburg, FL Security Bank of the Coast (IO) Brunswick, GA Pending Withdrawn 10-15-2007 Page 10 CHECK CASHER LICENSES ISSUED CITY Cumming Tifton Griffin Covington Macon Columbus Brookfield Gainesville Cumming Forsyth Atlanta Canton Marshallville Douglasville Augusta Cartersville Cedartown Dalton Marietta Gainesville Lovejoy Jesup Lawrenceville Atlanta Washington Sandy Springs Marietta Augusta Valdosta Cordele Keene Dublin APPLICANT NAME A-1 Food Mart, Inc. * AMBI, LLC Accent World, Inc. * Alveez International, Inc. * Bronnor, Bernard * Bugh, Robert S. Jr. * Butt, Muhammad H. * Campbell, Sandra K * Chi Investments, Inc. * DYYU, Inc. * Danneman's Supermarket, Inc. * FHR Enterprises, Inc. * Felton's Red & White, Inc. * Friends Mart, Inc. * Golakia Corporation * Hanmar Inc. * Jai Mataji, LLC Jalasai, LLC * Krishan Handa Las Palomas, Inc. Lovejoy Food Mart, Inc. * MSR Enterprises, LLC * Mama Enterprises, Inc. Mee Lee, Inc. Microfinance International Corporation Quick Check Cashing, Inc. Quik Thrift Food Stores, Inc. * S. S. Paek Enterprises, Inc. * Sanket Corporation * Sankets, Inc. * Southern Family Markets, LLC United Brothers International, Inc. TRADE NAME Citgo Food Mart Lil' Pantry #6 Accent World Bond's BP Unique II Auto Detail Bugh's Sunny Food Mart Islands Pawn Beverage Center Discount Package DYYU Danneman's Supermarket Quick Stop Shop 3 Felton's Red & White, Inc. JB's Quick Stop Laney Supermarket Gas and Go Food Store Country Store Tobacco Outlet Marietta Conference Center Gift Shop Las Palomas BP Food Mart Peaches Exxon at Papermill 556 Package Store Alante Financial Quick Shop Quik Thrift/Super Foods Overpass Package P&P Food Store Quick Mart #17 SFM and Piggly Wiggly Super Food Mart * =Registered Exempt (O.C.G.A. 7-1-709) MONEY TRANSMITTER LICENSES ISSUED MONEY TRANSMITTER Microfinance International Corporation Washington, DC APPROVAL DATE 10-22-2007 GEORGIA DEPARTMENT OF BANKING AND FINANCE 2990 Brandywine Road Suite 200 Atlanta, Georgia 30341-5565 Phone: (770) 986-1633 Fax: (770) 986-1654 or 1655 Email: dbfpress@dbf.state.ga.us Page 11 The Department is the state agency that regulates and examines banks, credit unions, and trust companies chartered by the State of Georgia. The Department also has regulatory and/or licensing authority over mortgage brokers, lenders, and processors, money service businesses, international banking organizations, and bank holding companies conducting business in Georgia. Our Mission is to promote safe, sound, competitive financial services in Georgia through innovative, responsive regulation and supervision. Our Vision is to be the best financial services industry regulator in the country Progressive. Proactive. Service-Oriented. We're on the Web! Visit our website at: dbf.georgia.gov Sign-up to Receive this Publication: This publication is delivered to interested parties via e-mail and is also available from the Department's website at: http://dbf.georgia.gov under Publications, Financial Institutions Bulletin. If you would like to be added to our distribution list, please send an e-mail to dbfpress@dbf.state.ga.us and indicate your name and the company or institution you are with. "Safeguarding Georgia's Financial Services"