Georgia Department of Banking and Finance Housekeeping Bill - GBA Supports
by Rep. Bruce Williamson
(R-Monroe) includes important provisions that the GBA Code Review Task Force recommended as the culmination of their three-year project to update Georgia’s banking laws. Of note, the bill includes a streamlined calculation for legal lending limits, the ability of the Department to directly examine third party service providers, gives state chartered institutions the ability to conduct business on Sundays to give them parity with national banks, adds the option of providing minors electronic access to accounts, streamlines the Department’s subpoena process, authorizes pay-by-phone fees, expands the circumstances for board member removal by the financial institution and modernizes the process for the issuance of subordinated debt. The bill passed the House on a vote of 166 to 1
. The bill was handled in the Senate by Sen. John Kennedy
(R-Macon) and passed the Senate on a vote of 44 to 8
. Our thanks especially to the task force chair, Brad Miller
, General Counsel at United Community Banks, Inc.
, Blairsville, and DBF’s Bo Fears
, Deputy Commissioner for Legal Affairs, who served as scrivener, for their hard work to ensure the Georgia banking code is among the best in the nation.
Modernizing Georgia Business Judgment Rule - GBA Supports
by Rep. Beth Beskin
(R-Atlanta) will enhance the liability protection for board members and bank officers in their decision-making process. In FDIC v. Loudermilk, the Georgia Supreme Court bifurcated the decision-making process from the decision. In simple terms, the results of the case were that directors and officers would be held accountable for their decisions under a gross negligence standard of care, while being held accountable for their decision-making process under an ordinary negligence standard of care. The bill removes the bifurcation, and both the decision-making process and the decision will be judged under a gross negligence standard. The bill passed the House on a vote of 128 to 40
. Sen. John Kennedy
(R-Macon) handled the bill in the Senate where it passed on a vote of 41 to 10
. Click to read an issue brief
about the need to adopt this legislation.