Financial institutions today, Apr. 2010

Inside this issue:

"Payable on Death" 2 Beneficiaries

Q&A - GRMA and

2

SAFE Act

Applicability to Real

Estate Brokers

Liability Insurance

2

Customer Service

3

Stars for the Month

of April

Action on

4

Applications for the

Month of April

News and topics of interest to financial institutions regulated by the Department of Banking and Finance

Monthly Bulletin #4

April 2010

Pending Increase in GRMA Per Loan Fee from $6.50 to $10.00
During the 2010 Legislative Session, House Bill 1055 was passed by the Georgia General Assembly. This bill includes a provision that increases from $6.50 to $10.00 the loan fee that must be remitted to the Department for each residential mortgage loan that closes for which a security deed, a modification of a security deed or other form of modification of a security interest is recorded.
Although House Bill 1055 was passed by the Legislature, it will not take effect until the Governor signs it. As of the date of the issuance of this publication, the Governor has not signed or taken any other action regarding this bill.
The Department will provide notice via e-mail to mortgage brokers, mortgage lenders and financial institutions when House Bill 1055 becomes law and will post information on the agency's website as it becomes available.
For the period of January 1- June 30, 2010, per loan fees must be remitted to the Department no later than Wednesday, September 1, 2010. The fee that must be remitted to the Department for each residential mortgage loan closed as of the effective date of the law is $10.00. A fee of $6.50 must be submitted to the Department for every residential mortgage loan that was closed before the date the law took effect.
In anticipation of this bill becoming law, the Department recommends that financial institutions, mortgage lenders and mortgage brokers begin to review their policies, procedures, computer programs, loan form documents, etc. for changes that will need to be made to provide for the increase in the fee amount.

DBF Outreach AND UPCOMING SPEAKING ENGAGEMENTS
Commissioner Braswell will be speaking at the Georgia Credit Union Affiliates (GCUA) annual convention at
the Westin in Savannah on May 7th. He will also be speaking at the Marietta Kiwanis Club at the Marietta Conference Center on May 13th.
Supervisory Manager Mike Killeen will be assisting at the Georgia Bankers Association school held on the
campus of the University of Georgia in Athens on May 4th, 5th, and 6th. He will serve the role of the "Bank Examiner" for the students as they participate in the bank simulation. In addition, District Director Heather Sartain will be participating in a panel discussion during the school on May 3rd.
"Safeguarding Georgia's Financial Services"

Page 2
"Payable on Death" Beneficiaries
A 2009 Georgia Supreme Court decision ruled that a corporation is not an eligible "payable on death" (P.O.D. payee) beneficiary. The Court determined that the Financial Institutions Code provided that a P.O.D. payee must be a "person" designated on an account as the one to whom the account is payable on request after the death of one or more account holders. A "person" is defined at O.C.G.A. 7-1-4 (26) as "an individual, trust, general or limited partnership, unincorporated association (except a joint-stock association), or any other form of unincorporated enterprise." The Court determined that the P.O.D. designation to the charitable corporation failed and that the financial instruments involved would simply become part of the account holder's estate.
More recently the charitable corporation that was named as the P.O.D. payee on the accounts in the above Supreme Court case has filed suit against each of the six financial institutions that used the P.O.D. accounts naming the corporate charity as the beneficiary based on its claim that the banks should bear the costs of the loss to the charity.
The Department is bringing this case to your attention to ensure that you are aware that P.O.D. accounts are not the proper vehicle for corporate beneficiaries for your customers. Financial Institutions should contact their legal counsel to discuss options available to banks in order to accomplish their customer's goals.
The case is TUVIM et al v. UNITED JEWISH COMMUNITIES, INC. et al, 285 Ga. 632 (2009).
Q&A - GRMA and SAFE Act Applicability to Real Estate Brokers
The Department has provided a Q&A document on its website to clarify the applicability of the GRMA and the Secure and Fair Enforcement for Mortgage Lending Act of 2008 (S.A.F.E. Act) to real estate brokers/salesperson.
The Q&A can be found on our website at: http://dbf.georgia.gov/vgn/images/portal/cit_1210/32/5/159093506RealEstateBrokerQ&A.pdf
Liability Insurance
The national banking crisis has spurred an increase in the cost of liability insurance premiums for bank directors and officers. Financial institutions are required to maintain blanket bond coverage under Georgia law, and while liability insurance is not required by statute, the Department would certainly recommend that financial institutions renew and maintain liability coverage in all areas. Some institutions may be tempted to forego liability insurance based on capital or other cost-saving concerns. The Department does not view this approach favorably.
Prior to policy renewal time, financial institutions should begin to work with their current insurer or shop for insurance in order to maintain adequate coverage at reasonable rates.

Page 3
CUSTOMER SERVICE STARS FOR THE MONTH OF APRIL
It is the Department's goal to provide excellent customer service by meeting and exceeding the expectations of our customers. Along those lines, we would like to recognize the following individuals and teams for going above and beyond in serving our customers:
Consumer Affairs Specialist Mark Simpson - The Department received a letter from a customer stating: "I am writing this letter to commend one of your employees, Mr. Mark Simpson. I called requesting to speak with someone regarding an issue on loan modification. He listened patiently to my explanation of the quite lengthy problem and offered step-by-step procedures to try to settle the issue. Mr. Simpson spent a great amount of time with me providing contact individuals and information. In these days of dwindling customer service, Mr. Simpson is the epitome of the customer-oriented advisor. He is a credit to Georgia consumers and the Georgia Department of Banking and Finance."
IT Staff, Director of IT Denise Brown, Network and Information Security Administrator Felicia Hedgebeth and IS Database Integrator Carol Hyde - The Department received a letter from a customer stating: "Felicia, I just wanted to say thanks to you, Denise and Carol for working so hard to keep us up and running - we are spoiled by how clean we run and how great your customer service is. Thanks for everything you do and for giving up your evenings and weekend for us. You rock!"
Senior Financial Examiner Bob Bauguss - The Department received an e-mail from a customer stating: "I would like to submit Mr. Bob Bauguss for a Customer Service Star. Mr. Bauguss displayed tremendous professionalism and patience in my loan originator process. My stress level was greatly reduced with his positive attitude. Thank you Mr. Bauguss!"
Supervisory Manager (MSBs) Joel Byers - The Department received an e-mail from a customer stating: "Good morning Joel. I just wanted to say it was a great experience during the exam on my end. You were great. I would rank you an A+. Thank you very much. I learned a lot."
CONGRATULATIONS AND GREAT JOB TO THIS MONTH'S CUSTOMER SERVICE STARS!!
On April 29, 2010, the Department's IS Database Integrator Carol Hyde was honored, along with individuals and teams from other state agencies and institutions, with a Governor's Commendation for excellence in customer service.
The Governor's Office of Customer Service accepts nominations throughout the year for individuals and teams that provide "above-and-beyond" customer service. Winners are recognized at quarterly Governor's Commendation events.

Page 4
Action on Applications for the Month of April:
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 April 2010.

FINANCIAL INSTITUTION HeritageBank of the South Albany
HeritageBank of the South Albany
HeritageBank of the South Albany
HeritageBank of the South Albany
HeritageBank of the South Albany
SunTrust Bank Atlanta
PeoplesSouth Bank Colquitt
PeoplesSouth Bank Colquitt
PeoplesSouth Bank Colquitt
PeoplesSouth Bank Colquitt

APPLICATIONS TO ESTABLISH A BRANCH OFFICE

BRANCH OFFICE Adel Branch Office
301 West Fourth Street
Adel, GA 31620 Cook County

APPROVAL 04-30-2010

Baxley Branch Office 198 East Parker Street
Baxley, GA 31513
Appling County

04-30-2010

Hazlehurst Branch Office
22 East Jarman Street Hazlehurst, GA 31539
Jeff Davis County

04-30-2010

Northside Drive Branch Office
726 Northside Drive
Statesboro, GA 30458 Bulloch County

04-30-2010

Statesboro Branch Office 335 South Main Street
Statesboro, GA 30459
Bulloch County

04-30-2010

Polo Fields Branch Office
6005 Post Road Cumming, GA 30040
Forsyth County

08-31-2009

Lynn Haven Branch Office
2606 South Highway 77 Lynn Haven, FL 32444
Bay County

Pending

23rd Street Branch Office
450 23rd Street East
Panama City, FL 32405 Bay County

Pending

South Tyndall Parkway Branch Office 805 South Tyndall Parkway
Panama City, FL 32404
Bay County

Pending

Panama City Beach Branch Office
11790 Panama City Beach Parkway Panama City Beach, FL 32407
Bay County

Pending

BEGIN BUSINESS 04-12-2010

Page 5

FINANCIAL INSTITUTION Southern Bank Sardis
United Bank Zebulon

BRANCH OFFICE Gibson Branch Office 21 College Street Gibson, GA 30810 Glascock County
West Taylor Branch Office 1340 West Taylor Street Griffin, GA 30223 Spalding County

APPROVAL BEGIN BUSINESS Pending
04-12-2010

APPLICATIONS TO CHANGE LOCATION

FINANCIAL INSTITUTION
SunTrust Bank Atlanta

CHANGE LOCATION OF Wildwood Manor Branch Office From: 10401 Old Georgetown Road Bethesda MD 20814 Montgomery County To: 10415 Old Georgetown Road Bethesda MD 20814 Montgomery County

APPROVAL 08-17-2009

Global Commerce Bank Doraville

Main Office From: 5150 Buford Highway, Suite B-130
Doraville 30340
DeKalb County To: 7130 Buford Highway NE
Doraville GA 30340
DeKalb County

Pending

EFFECTIVE 04-23-2010

PREVIOUS NAME Columbus Bank and Trust Company Columbus
Bank of Upson Thomaston
Bank of Valdosta Valdosta

NOTICE OF CHANGE IN NAME

NEW NAME Synovus Bank

APPROVAL Pending

EFFECTIVE

SouthCrest Bank

Pending

Sunrise Bank

Pending

PROPOSED NAME Georgia Credit Union
Georgia's State Credit Union

APPLICATIONS FOR RESERVATION OF A NAME

COUNTY Gwinnett County

APPLICANT
Mr. Russ White
2353 River Terrace Drive Murfreesboro, TN 37129

Gwinnett County

Mr. Russ White 2353 River Terrace Drive
Murfreesboro, TN 37129

Page 6
FINANCIAL INSTITUTION (SURVIVOR) Frederica Credit Union Brunswick, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA

FINANCIAL INSTITUTION MERGERS

MERGED INSTITUTION Rich-SeaPak Federal Credit Union Brunswick, GA

APPROVAL Pending

The Coastal Bank of Georgia Brunswick, GA

Pending

Bank of North Georgia Alpharetta, GA

Pending

The National Bank of South Carolina Sumter, SC

Pending

First Commercial Bank Birmingham, AL

Pending

Coastal Bank and Trust of Florida Pensacola, FL

Pending

AFB&T Athens, GA

Pending

Synovus Bank Saint Petersburg, FL

Pending

Sea Island Bank Statesboro, GA

Pending

First Commercial Bank of Huntsville Huntsville, AL

Pending

Sterling Bank Montgomery, AL

Pending

SB&T Bank Albany, GA

Pending

The First National Bank of Jasper Jasper, AL

Pending

Commercial Bank Thomasville, GA

Pending

First State Bank and Trust Company of Valdosta Pending Valdosta, GA

Tallahassee State Bank Tallahassee, FL

Pending

Synovus Bank of Jacksonville Jacksonville, FL

Pending

First Coast Community Bank Fernandina Beach, FL

Pending

CB&T Bank of East Alabama Phenix City, AL

Pending

EFFECTIVE

(SURVIVOR) Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Columbus Bank and Trust Company Columbus, GA
Bank of Upson Thomaston, GA
Bank of Upson Thomaston, GA
Bank of Upson Thomaston, GA
Bank of Valdosta Valdosta, GA
Bank of Valdosta Valdosta, GA

Page 7

MERGED INSTITUTION

APPROVAL

Commercial Bank & Trust Company of Troup County Pending

LaGrange, GA

Bank of Coweta Newnan, GA

Pending

Community Bank and Trust of Southeast Alabama Dothan, AL

Pending

First Community Bank of Tifton Tifton, GA

Pending

Citizens First Bank Rome, GA

Pending

Cohutta Banking Company Chattanooga, TN

Pending

Georgia Bank & Trust Calhoun, GA

Pending

The Bank of Tuscaloosa Tuscaloosa, AL

Pending

CB&T Bank of Middle Georgia Warner Robins, GA

Pending

The First National Bank of Polk County Cedartown, GA

Pending

Bank of Chickamauga Chickamauga, GA

Pending

Peachtree Bank Maplesville, AL

Pending

Peoples State Bank Jeffersonville, GA

Pending

Sunrise Bank of Atlanta Atlanta, GA

Pending

EFFECTIVE

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

FORMATIONS ONLY

BANK HOLDING COMPANY State Bank Financial Corporation Atlanta, GA

TO ACQUIRE State Bank and Trust Company Pinehurst, GA

APPROVAL Pending

Page 8

CHECK CASHER LICENSES ISSUED

CITY Covington
Buford Monroe
Duluth
Hinesville Gillsville
Mableton
Flowery Branch Forsyth
Woodstock
Commerce Marietta

APPLICANT NAME Alcovy Jewelry and Pawn, Inc.
* Bhalvani Enterprises, Inc. * Four 11 Enterprise, LLC
Galtar, LLC
* Mariam A. Winters * Om Ganesay, Inc.
Quick Shop Express, Inc.
Rehmat Ema, Inc. * Shree Ramdev, LLC
Vero's Boutique, Inc.
* Vidash Investments, LLC Whitewater Shell, Inc.

TRADE NAME Alcovy Jewelry and Pawn
Shell Food Mart Highway 11 Truckstop
Best Rates Check Cashing Duluth
M and R Om Food Mart
Mableton Citgo
Fast Food Mart WCS Minit Mart
Vero's Boutique
Corner Station Whitewater Shell

* =Registered (O.C.G.A. 7-1-700 et al)

OFFICE CLOSING
This is a reminder that the Department will be closed on Monday, May 10th and Tuesday, June 1st for employee furlough days and on
Monday, May 31st for Memorial Day.

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 9
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/processors, lenders and loan originators, 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.

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