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GBA Files Amicus
The GBA has filed an amicus curiae brief with the Georgia Court of Appeals in support of one of our members and all other banks providing trust-related services.  If the Court of Appeals does not reverse the lower court’s ruling, there will be a substantial new burden placed on banks.  Here are the facts in the case:  During a brief visit to the United States, retired Iraqi general Ibrahim NamikAli (“Ali”) purchased three certificates of deposit from Wachovia Bank (“Wachovia”).  At maturity, the proceeds of the largest of these three certificates were to be distributed to an investment account in the form of a standard revocable trust, an arrangement commonly used by Georgia banks for customers desiring investment services.  (The purpose of such a trust is to provide an investment vehicle; typically, as here, the document makes no testamentary provisions.)  Ali died shortly after returning to Iraq, whereupon his family learned that he was subject to U.S. estate taxes on the assets that he had deposited here. The family sued Wachovia and obtained a judgment for part of the estate taxes attributable to Ali’s U.S. assets.  This result is deeply troubling to the trust business in Georgia. The effect of this judgment is to impose a duty on bank trust departments to render sophisticated estate planning advice, even to customers with whom there is minimal contact. No principle of Georgia law supports this outcome, which would significantly increase the cost and complexity of providing trust and financial services in this State.  Oral arguments were held October 16.

2003 State Legislative Issues
Governor Sonny Perdue
Lt. Gov. Mark Taylor
Georgia House of Representatives
Georgia State Senate
Federal Legislative Issues
U.S. Congress
Legislative Updates
Legal Issues

Sub S Provisions Survive
The House Ways and Means Committee marked up H.R. 2896, the American Jobs Creation Act of 2003, which is a scaled-back version of a major corporate tax reform bill.  The final bill still contains several Subchapter S provisions that are of interest to a number of our members.  Particularly, language is included that would treat three generations of family members as one shareholder and expand the number of eligible shareholders from 75 to 100.  In addition, the bill includes a provision that would allow stock held by an employee stock ownership plan (ESOP) to be used to repay loans that were made to acquire securities without violating qualification requirements or prohibited transaction rules.  It is still uncertain how quickly this legislation can be scheduled for further action.  With questions on this or other federal or state legislation, call GBA’s Elizabeth Chandler at (404) 420-2027.

GBA BankPAC Update
Since our last report, the officers and directors of Washington Mutual, Atlanta, Susan James, First Vice President, Corporate Relations, and Waycross Bank & Trust, G. C. Ganas, President, have participated by contributing to the GBA StatePAC.  In addition, officers and directors of Waycross Bank & Trust, G. C. Ganas, President, have contributed to the GBA FedPAC.  Take a look at the BankPAC Goals vs. Actual chart to see how each GBA Group is doing - the news is great!  Thanks to all for your support. If you have questions or need additional information, please contact Elizabeth Chandler at (404) 420-2027.

Congress Moving Toward Adjournment
The U.S. Congress is making every effort to wrap up their work for the year in early November, but their plates are full of critical issues.  One of their must-pass bills of interest to bankers is the extension of the Fair Credit Reporting Act (FCRA).  The two California Senators (Feinstein and Boxer) are lobbying for floor time to debate an amendment that would place new restrictions on information sharing among affiliates.  You may remember the California General Assembly passed its own version of restrictive affiliate sharing legislation earlier this year, and the FCRA as currently written would preempt that statute.  Hopefully, the Californians’ amendment will be unsuccessful and the bill will pass.  If Congress fails to act by December 31, 2003, the states will be able to pass their own legislation dealing with credit reporting which would create havoc in the credit reporting industry.  Congress is grappling with what to do with an amendment in a House-passed version of an appropriations bill that extends for another year the moratorium on granting financial institutions real estate brokerage authority.  The same appropriations bill from the Senate does not contain a similar amendment, but the Realtors are pulling out all the stops.  In fact, the Realtors are even trying to strengthen their amendment by making the moratorium permanent rather than just extending it for another year.  GBA has been communicating with both our Senators on the FCRA amendment as well as the entire delegation in opposition to the Realtors’ amendment.

Calendar of Events
Schools
Conferences
Seminars
Events
American Institute of Banking
Leadership GBA
Personal Economics Program (PEP)
Internet Training

Credit Conference Hotel Deadline Approaches
GBA’s annual Credit Conference is planned for December 3-4 at the Renaissance Waverly Hotel in Atlanta.  A block of rooms has been reserved and the November 3 deadline for reservations is fast approaching.  Please call the hotel directly at (770) 953-4500 for reservations. Please contact Marybeth Jones at (404) 420-2032 for further details.

New AIB Online Course
Georgia bankers continue to lead the nation in taking AIB online courses and the AIB continues to add new courses as our bankers request content specific to their needs.  The latest AIB online course offering is Understanding Your Construction Borrower.   This 10-week course provides an overview of the construction process and helps the participant better evaluate and understand the construction borrower.  The course examines the typical documents required and each document is examined to evaluate the financial risk impact on the bank.  Different project types and the idiosyncrasies pertaining to them will also be covered.  Specific topics include construction budgets, soil reports, municipal approvals, loan administration and project closing.  Discussions will include the loan closing, payment disbursement and title work.  The first class will begin March 1, 2004 and cost $375.  The GBA will give away one free course to the first member banker who calls GBA’s Edie Canales at (404) 420-2034.  Please contact Edie for additional information or to register for AIB’s online courses.

Honor Graduates Recognized
The 2003 session of the Southern Operations and Technology School was held October 12-17 at the University of Georgia. The school’s two-year curriculum includes classes that expand and strengthen the student’s knowledge of key operations areas, new technologies, current regulatory issues, and management skills. Students are required to submit a home study project between the first and second year and a passing grade is mandatory for graduation. Each year two students with the highest grades on their home study projects are honored at graduation.  Congratulations to this year’s honorees: Lori Cherry, Bank of Dudley in Dublin, as the Graduate of Distinction–the student with the highest grade; and Laura Sanchez, The Farmers Bank in Portland, Tennessee, as the Honor Graduate–the student with the second highest grade.   Congratulations to the following bankers from Georgia who also graduated:

• Deborah Barrow, First State Bank, Wrens; 

• Amber Camilla, Charter Bank & Trust Company, Marietta; 

• Brenda Conley, United Community Bank, Blairsville;

• Rebecca DeVane, ABC Bancorp, Inc., Moultrie;

• Kaye Hannay, The National Bank of Walton County, Monroe;

• Russ Hunt, First National Bank of Polk County, Rockmart;

• Shelly LaBorde, Georgia Bank & Trust Company of Augusta;

• Phil Lewis, Northwest Georgia Bank, Ringgold;

• Judy Palmer, Main Street Bank, Covington;

• Dawn Perry, Oconee State Bank; Watkinsville;

• Betsy Purvis, The Citizens Bank, Nashville;

• Machell Rogers, The Merchants & Citizens Bank, McRae;

• Ken Scharnagl, The Heritage Bank, Hinesville;

• Tom Shepard, Altamaha Bank & Trust Company, Vidalia;

• Julie Simmons, Piedmont Community Bank, Gray;

• Vicki Thompson, Farmers & Merchants Bank, Dublin;

• Chris Uhrich, United Community Bank, Blairsville; and 

• Lisa Wilson, First American Bank & Trust Company, Athens.

Did you know GBA offers the following products?

2004 Holiday Decals
Holiday Decals are made available through the GBA.  These window decals not only provide a professional appearance, but also contain the 10 holiday close dates recognized by the Federal Reserve Bank, in accordance the FDIC rules.

2003 Georgia Banking Laws and Commercial Code Supplement (CD-ROM included)
All changes of the Uniform Commercial Code or the Rules of the Department of Banking and Finance during the 2003 session are included.

2003 Salary Survey
The Salary Survey includes salary and benefit data for over 100 Banking positions, with data being reported by approximately 100 financial institutions.

Record Retention Manual
Records should be destroyed on a regular basis, in a timely manner and in accordance with the law.  This manual aids banks in getting a retention program started.  $140 first copy/$45 each additional copy

Thumbprint Signature Program
The GBA-sponsored Thumbprint Program has been found to significantly reduce check fraud.  Nationally this program is responsible for an 82% reduction in check fraud.

FinCrime.com
FinCrime.com is a database and clearing house that facilitates the immediate sharing of information via email about fraudulent activity between financial institutions and law enforcement.

Georgia Financial Directory
The Bank Directory contains complete information on all the banks in the state and is invaluable to banking professionals.  Also are included are a listing of Associate Member Companies and the GBA’s own Strategic Partners to assist our members in locating companies who provide useful products for their banks.

For more information or to order any of the products listed above, please contact GBA’s Renee Valdez at (404) 420-2036.

Welcome New Associate Members!
Congratulations to the following companies for being approved for Associate Membership at the October 7^th Board Meeting:

• ADI Performance, Marietta, James Dawson, President;

• Advocate Networks, LLC, Atlanta, Tim Wise, CEO;

• BeavEx, Inc., Atlanta, Mark Tuchmann, CEO;

• Dabbs, Hickman, Hill & Cannon, LLP, Statesboro, Billy Hickman, Senior Partner; 

• First Data Corporation, Atlanta, Charles Fote, President;

• Jack Henry & Associates, Inc., Monett, MO, Mike Henry, Chairman;

• The Kiosk and Display Company, LLC, Atlanta, Jon Vandermeer, Owner; and

• Travelers Property and Casualty Corporation, Alpharetta, Robert Lipp, Chairman

GBA Retirement Welcomes New Member
GBA Retirement Services, Inc. is pleased to welcome a new participating plan sponsor: Mountain Heritage Bank, Clayton, Jim Wallis, President. The programs offered through the GBA Master Pension and Profit Sharing Trusts provide flexibility to meet the needs of any bank or associate member who may be looking to add to or change their qualified retirement plan.  The Master Trust provides high quality, affordable pension, profit sharing, and Section 401(k) programs for banks and associate members of all sizes.  Want to compare the investment returns on your current plan with the GBA?  Click here for a GBA Retirement Services Update.  Please contact Mandy Richards at (404) 420-2025 for more information on how GBA can help with your retirement plan design.

Welcome New Participants
The Board of Directors of the GBA Insurance Trust, Inc. welcomes Community Bank of Georgia, Baxley, Lloyd Gunter, CEO, and Advocate Networks, LLC, Atlanta, Timothy Wise, CEO, to the Trust. These companies join more than 290 community banks and associate members in this unmatched member benefit. Please call GBA’s Susan Kelley at (404) 420-2017 for more information.

2003 Law Code Supplements Available
The 2003 Law Code Book Supplements are in!  The supplements contain the laws passed in the 2003 Legislative Session and complement the 2002 Georgia Banking Laws and Commercial Code.  This year’s set includes the paper version and the CDROM. Members on our standing order list will receive their copy early next week.  If you are not on our standing order list and would like to receive a copy, please call GBA’s Renee Valdez at (404) 420-2036 or Kenyetta Parks at (404) 420-2035. 

GBA Retirement Services offers top quality

For Sale
Modular Bank Building. Please contact Lauri Young at Neighbors Bank at (770) 343-6255 for more information.

Available January 2004: Temporary Drive-Thru approximately 10' x 14'. $5,000 or best offer. Please direct questions to Dorsey Thompson, Vice President of Glennville Bank, at (912) 654-3471.

Member Wins HR Award
The Bankers Bank, Atlanta, won the Society for Human Resource Management’s HR Excellence Honorable Mention Award for their “Connecting with Employees” programs. Kim Walton, Senior Vice President of Human Resources, accepted the award at SHRM’s Southeastern Annual Conference on October 20.

Gainesville, Gainesville Bank & Trust
Dotty H. Merica has joined the bank as First Vice President of Management Information Systems.

Hogansville, Flag Bank
Our sympathies to the former colleagues and friends of John Hines who died recently.  John was the longtime president of Citizens Bank.

Macon, Rivoli Bank & Trust
Walker Jordan has joined the bank as Commercial Lending Officer.

Thomasville, Farmers & Merchants Bank
Kevin Taylor has been named to the Board of Directors.

Join Our Email Distribution List
A bonus of getting the e-Bulletin and e-Legislative Update is the number of links that are included. This is a great way to keep your key employees informed of significant industry information, trends and events. We do not disclose email addresses and only use them for internal communication purposes. Bankers from any member bank can be added to the email distribution list by sending an email containing the name and email address of each individual to GBA’s Lydia Thomas. 

For more information, send an e-mail to the Webmaster.

GBA Staff e-mail and direct phone numbers, snail mail addresses, fax and phone numbers