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Soldiers & Sailors Relief Act
Recent events, specifically the announcement that Reserve and National Guard units will be called to active duty, have focused attention on the easily forgotten Soldiers’ and Sailors’ Civil Relief Act of 1940 (50 U.S.C. App. 501 et seq.)  The section of the act that is most often of interest to bankers is the provision (sect. 526) reducing the interest rates on pre-active duty loans to a maximum of 6%.  Click here for the one-page information sheet prepared by ABA’s associate general counsel.

Peanut Bank Week
Celebrating Fields of Green is the theme for this year’s Peanut Bank Week, sponsored by the GBA’s Agriculture Committee chaired by John Gandy, city president of Colony Bank in Moultrie, and the Georgia Peanut Commission.  Georgia can be proud of its peanut production.  There are twenty-five thousand people directly employed in the production of peanuts in Georgia and over $352 million in gross receipts were paid to Georgia peanut producers this past year.  Banks have the opportunity of joining in the promotion and celebrating the success of Georgia’s peanut producers during the week of October 1-5.  To sign up, please contact Marcus Evans at the Georgia Peanut Commission at (912) 386-3999. 

Georgia Bankers Respond
In their usual fashion, bankers across Georgia have responded tremendously to the terrorist attacks last week.  We have heard dozens of heartwarming stories of bankers taking the lead in sponsoring blood drives, fund raising initiatives and coordinating remembrance services.  Bankers in Vienna joined together to make ribbons and bows in patriotic colors and sold them to their customers raising over $1,100 for the Red Cross in just one day.  This is just one example of bankers not willing to sit back and wait for someone else to do something.

To demonstrate our industry’s solidarity with the nation, the Georgia Bankers Association is joining with our colleagues at the New York Bankers Association and Virginia Bankers Association in supporting a special fund to assist the victims and their families.

The fund will collect and distribute the contributions of banks and their employees to charitable organizations providing assistance in the New York City and Washington, D.C. areas.  We believe that bankers will want to join us in honoring the lives of those who were lost and, especially, in assisting their families.

A special board of bankers and state bankers association executives will select the charities to receive our industry’s contributions, and we urge everyone to give generously.  All contributions are fully tax-deductible and will go directly to the charities selected.

Our thanks to Don Ogilvie, Executive Director of the American Bankers Association, for agreeing to help manage this process.  Checks should be made payable to “Victims and Families Relief Fund” and mailed to:

American Bankers Association
Victims and Families Relief Fund
P.O. Box 791202
Baltimore, MD  21279-1202

Your staff members here at the Georgia Bankers Association are contributing personally to this effort, and we hope you will join us.

2001 State Legislative Issues
Governor Roy Barnes
Lt. Gov. Mark Taylor
Georgia House of Representatives
Georgia State Senate
Federal Legislative Issues
U.S. Congress
Legislative Updates
Legal Issues

Legislative Agenda
House Financial Services Committee Chairman Mike Oxley (R-OH) and Ranking Member John LaFalce (D-NY), after consulting with Committee members and industry regulators, announced new priorities for the Committee to respond to industry needs and to better secure the financial system from terrorists. Oxley and LaFalce said their agenda will focus on ensuring proper functioning of U.S. capital markets; protecting the solvency of the insurance industry, possibly by providing a relief package; and moving forward on money laundering issues to prevent terrorists’ money from passing through U.S. financial institutions. As a result of these issues, Oxley and LaFalce indicated that they are moving deposit insurance reform and other legislation down on their priority list. Call GBA’s Elizabeth Way with questions at (404) 420-2027.

Let’s Tee it up for BankPAC!
Leadership GBA will host its First Annual Georgia BankPAC Classic on Wednesday, October 17, 2001 at the Oakview Golf and Country Club in Macon.  This two-man scramble tournament promises to be a challenging and fun event for everyone!  It is also a great opportunity to invite your legislators and directors to meet and play golf with your colleagues in the banking industry.  The proceeds from this tournament will be donated to the GBA StatePAC.  There are still spaces available so register now for a great time and a chance to win the Georgia BankPAC Trophy!  If you have any questions concerning the tournament, call GBA’s Susie McGehee at (404) 420-2010. 

• First Community Bank of Southwest Georgia, Bainbridge, Jeff Hanson, President

• United Community Banks, Inc., Blairsville, Jimmy Tallent, President

• The Citizens Bank of Swainsboro, Milton Gray, President

In addition, officers and directors of  the following banks have contributed to the GBA FedPAC:

• First Community Bank of Southwest Georgia, Bainbridge, Jeff Hanson, President
• Farmers & Merchants Bank, Dublin, Wallace Miller, President
• Citizens Bank & Trust Company, Eastman, Jim Williams, President
• Gainesville Bank & Trust, Gainesville, Richard Hunt, President
• Bank of Monticello, Monticello, Steve Jordan, President
• Southwest Georgia Bank, Moultrie, John Clark, Chairman
• The Park Avenue Bank, Valdosta, Bill Cowart, President

Thanks to everyone for your support.  Please contact GBA’s Elizabeth Way at (404) 420-2027 for additional information.

Calendar of Events
Schools
Conferences
Seminars
Events
Georgia AIB
Leadership GBA
Personal Economics Program (PEP)
Internet Training

Southern Operations & Technology School Just Around the Corner
There is still time to register for the first year class in the Southern Operations and Technology School, which will be held on the University of Georgia campus November 4 - 9. The School is the premier school in the southeast for operations and technology personnel.  Call GBA’s Marybeth Jones at (404) 420-2032 for more information. 

CEO & Bank Counsel Conferences
Almost a hundred bank presidents and members of GBA’s Bank Counsel Section plus their spouses and guests will be meeting October 7-9 at Sea Island and there is still time to register with GBA and the hotel.  As the regulators are continuing their closer scrutiny of bank loan portfolios, this meeting will be an opportune time to interact with the heads of all the state and federal regulatory agencies to discuss their strategies for the upcoming months.  Call GBA’s June Somers at (404) 420-2012 to register.

Credit Conference Scheduled
The economy, pricing strategies, negotiation skills, UCC issues and credit portfolio challenges will be topics presented at this year’s Credit Conference, slated for December 4-5 at The Renaissance Waverly Hotel in Atlanta.  Dr. George Benson, Dean of Terry College of Business at the University of Georgia and well-known Credit Analyst John McKinley of Atlanta will present keynote sessions. Thanks to Chair Bobby Shepard, President and CEO of PlanterFIRST in Cordele, and Vice Chair Bruce Bartholomew, President of McIntosh State Bank in Jackson, and the Credit Committee for planning such an informative agenda.  A block of rooms has been reserved at The Renaissance Waverly (770-953-4500) until November 3.  For additional information on the conference, please call GBA’s Norma Guild.  

Local and Long Distance Available
Lightyear Communication, GBA’s Strategic Partner for long distance service, is now able to offer local telephone service with a 20% discount.  For all lines switching to Lightyear Local Service, the long distance rate will be only 4.9¢ per minute.  Lightyear’s Local Service is available only in BellSouth markets for business accounts.  Lightyear is currently providing long distance service to over 100 GBA member banks.  With this program, you will not experience changes to your current telephone numbers or features and no interruption of services during the switch.  To learn more about this program, contact Michael Woodruff at (800) 546-5875 or GBA’s Renee Valdez (404) 420-2036. 

Georgia Bankers Association Thumbprint Signature Program
Check fraud costs banks and their customers millions of dollars each   year.  In a statewide effort to combat crime and protect our members, Georgia Bankers Association is in it’s 4^th year of endorsing the Thumbprint Signature Program.

This program provides a simple effective inexpensive method for preventing and deterring check fraud.  Help us send a clear message to criminals that check fraud will no longer be tolerated!

How Does It Work?
When non-account holders ask to cash a check, in addition to requesting the standard forms of identification, participating banks also ask them to place an impression of their thumbprint on the face of the check.  A small “inkless” touch pad facilitates the process.  Although the touch pad looks and operates just like a traditional inkpad, it leaves no stain or residue on users or clothing.  The procedure is quick, simple and clean.  Banks do not maintain a data bank of Thumbprint Signatures.  These signatures are used by law enforcement officials only in cases where fraud is suspected.

The program works as a natural deterrent.  Criminals seeking to commit check fraud are unlikely to put their thumbprints on bogus checks.  Most likely they will try their schemes elsewhere, and those who are foolish enough to cooperate leave a positive I.D. that can be turned over to law enforcement.

Success Stories
Since the inception of the program, a test group of participating banks has experienced an average 60% reduction in fraudulent checks passed by non-customers.

Thumbprint Signature has received widespread support from local law enforcement agencies.  When a bank reports an incidence of check fraud, often the first question asked is “Do you have a fingerprint?” And although the program is most effectively used as a deterrent, it has actually been used to help apprehend and identify criminals.  

How Do We Get Started?
There is no start-up fee other than the cost of the actual Thumbprint pads and products themselves.  You’ll want to be sure to order decals to post at all entrances to let people know you are participating in the program and warn potential criminals that their crimes will not go undetected.  Teller window displays and statement stuffers are also available.  Complete the order form on the reverse side and fax to (404) 522-9848. 

Some Of The Services Available Through GBA Services, Inc.

• Financial Publications-Georgia Banking Laws, Bank Directories

• Discounted Check Program

• Internet Loan Closing Program

• Checking Club Programs

• Discounted Long Distance Program

• Accounts Receivable Financing

• Bond and D&O Insurance

• Non-Qualified Executive Benefits

• Trust and Investment Services

• Real Estate Loan Products and Services
• Environmental Contamination Loan Insurance

Welcome New Participant
The Board of the GBA Insurance Trust welcomes to the Trust First National Bank West Metro, Dallas, Mickey Womble, CEO, and Southern Horizon Bank, I.O., Morrow, Brad Hendry, CEO.  They join more than 300 other community banks and associate members taking advantage of this unmatched member benefit.  Call GBA’s Susan Kelley at (404) 420-2017 with questions.

Integrated Financial Services (IFS)
GBA Services, Inc. has dissolved its endorsement of products and services offered by Integrated Financial Services, Inc.  While this is an unfortunate situation, we feel that certain conditions and services required of our strategic partners have not been satisfied.  Should you have any questions or comments concerning this issue, please feel free to call GBA’s Renee Valdez at (404) 420-2036.

Internet Banking – Are You Really Covered?
As a result of the potential gaps in traditional insurance policies, many insurance companies are introducing “E-insurance” policies. Most, however, are designed for e-commerce businesses, not for financial institutions engaged in Internet banking. 

As you evaluate these new products, you will find that coverage is expensive, mirrors the basic coverages that financial institutions already have under their Bond, and may not address the real gaps in coverage or risks relevant to financial institutions. 

In order to address the needs of community banks, the ABA-sponsored insurance program, underwritten by Progressive, has developed an Internet banking insurance program separately for financial institutions engaged in Internet banking. The Internet Banking Protection Package, recently approved in the state of Georgia, is a unique insurance solution for community banks. Two interconnected policies provide first-party and third-party coverages to fill the gaps where traditional insurance policies do not extend to Internet risks. First-party protection is provided through the Enhanced Financial Institution Bond and third-party protection via a separate and distinct policy - the Internet Banking Liability Policy.  

The Internet Banking Protection Package is designed to cover Internet banking, PC/home banking, and other electronic banking activities through the following interconnected policies:

A. Enhanced Financial Institution Bond- Fills the gaps in the standard Bond by providing coverage for loss due to:

• Hackers, Crackers and Viruses

• Employee Sabotage

• Fraudulent Funds Transfers initiated by voice, fax, email or Internet access

• Damage/destruction of data or computer programs

B. Internet Banking Liability Policy

• Affirmative, broad-form coverage for suits against the Financial Institution and its directors, officers and employees

• Coverage for suits alleging invasion of privacy

• Coverage for advertising injury, such as libel, slander and defamation

• Coverage for intellectual property claims, including copyright and trademark infringement

Optional Endorsements:

• Business Interruption 

• Cyber/Network Extortion 

• Public Relations Expense 

Have you quoted your Directors and Officers Liability Insurance and Financial Institution Bond lately?  If not, maybe now is the time to have yours re-quoted.  The ABA-sponsored insurance program, underwritten by Progressive Insurance, has been able to recently provide several Georgia banks with not only better coverage and increased benefit amounts, but significantly lower rates.  The Georgia Bankers Association worked closed with the ABA to institute this program at a time when most insurance carriers were either exiting the market or were quoting extraordinary high rates.  To find out more about this program or to provide your bank with a competitive proposal please call GBA’s Renee Valdez at (404) 420-2036.

Augusta, Georgia Bank & Trust Company
The bank announces the following promotions:  Sherry Wiggins to Vice President, Data Processing; Angie Morales to Vice President, Branch Operations; Frankie Wright to Human Resources Officer; Mark Allen to Banking Officer and Office Manager; and Tina Hydrick to Mortgage Loan Officer.

GBA's e-Bulletin List
Our e-Bulletin subscriber list continues to grow with each edition.  Bankers from any member bank can be added to the email-distributed version of the Bulletin.  A bonus of getting the e-Bulletin is the number of links we include, which puts even more information at your fingerprints. This is a great way to keep your key employees informed of significant industry information, trends and events. To add yourself or others in your bank to the list, send an email containing the name and email address of each individual to GBA’s Lydia Thomas.

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