reglab/statecodes huggingface dataset:
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-7 - SOLVENCY AND SAFEGUARDS › Rule 80-12-7-.01 - Minimum Capital Requirements

Current through Rules and Regulations filed through June 27, 2024
(1) MALPBs must continuously maintain at least the minimum leverage capital ratio, PV capital, risk capital, and statutory capital requirements set forth in this rule. The capital standards in this part are the minimum acceptable for an MALPB whose overall financial condition is fundamentally sound, which is well-managed and which has no material or significant operational or financial weaknesses. Thus, the Department is not precluded from requiring an MALPB to maintain a higher leverage capital ratio, PV capital, risk capital, or statutory capital level based on the MALPB's particular risk profile. The Department will evaluate the factors set forth in Rule  80-12-2-.08  in analyzing the MALPB's capital adequacy and may determine that the minimum leverage capital ratio, PV capital, risk capital, or statutory capital for that MALPB is greater than the minimum standards stated in this Rule. These same criteria will apply to any MALPB seeking authorization from the Department to engage in any activity if the Department believes the adequacy of the MALPB's capital structure is relevant to the requested authorization.
(2) The minimum leverage capital ratio requirement for an MALPB shall not be less than ten (10) percent.
(3) The minimum PV capital requirement for an MALPB shall not be less than:
(a) 5.00 percent of the tier of PV up to $10 million, plus
(b) 3.00 percent of the tier of PV above $10 million up to $25 million, plus
(c) 1.50 percent of the tier of PV above $25 million up to $100 million, plus
(d) 0.75 percent of the tier of PV above $100 million up to $250 million, plus
(e) 0.25 percent of the tier of PV above $250 million up to $1 billion, plus
(f) 0.15 percent of the tier of PV above $1 billion up to $5 billion, plus
(g) 0.08 percent of the tier of PV above $5 billion up to $20 billion, plus
(h) 0.05 percent of the tier of PV above $20 billion.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-7 - SOLVENCY AND SAFEGUARDS › Rule 80-12-7-.02 - Safeguarding Requirements

Current through Rules and Regulations filed through June 27, 2024
(1) All merchant funds shall be deposited immediately by the MALPB and shall remain in an account at a financial institution that is federally insured and authorized to do business in this State until paid over to the individual merchant; provided, however, that nothing herein shall preclude an MALPB from making appropriate deductions for chargebacks, fees, reserves, and other costs related to providing authorized merchant acquiring services owed by the individual merchant prior to remitting the net amount to the individual merchant. At the time of deposit into the account, the funds of the individual merchant in the account shall be deemed to be the property of the individual merchant. The MALPB shall maintain in good faith and in the ordinary course of business records with respect to the account that shall identify individual merchants in order that the total amount held in the account for each individual merchant can be readily ascertained.
(2) The agreement and related records for the account required to be maintained by Paragraph 1 of this Rule shall expressly provide that the account is maintained for the benefit of the MALPB's individual merchants.
(3) An MALPB and its officers shall have a fiduciary duty to preserve and account for proceeds ultimately payable to a merchant and shall be liable for all such proceeds.
(4) An MALPB shall not pledge or otherwise grant a security interest in funds in its possession that are ultimately payable to a merchant.
O.C.G.A. §§
										7-9-3, 7-9-13.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-7 - SOLVENCY AND SAFEGUARDS › Rule 80-12-7-.03 - Fidelity Coverage

Current through Rules and Regulations filed through June 27, 2024
(1) Every MALPB shall obtain fidelity insurance coverage, such as a fidelity bond, to provide protection and indemnity against theft, defalcation, or other similar actions by officers and employees of the MALPB as well as agents and independent contractors of the MALPB, which includes, but is not limited to, employees of eligible organizations, support organizations, holding companies, and affiliates, related to the merchant funds that are held by the MALPB pursuant to Rule  80-12-7-.02.
(2) The fidelity coverage shall contain a provision that coverage will not be canceled, or not renewed, or allowed to lapse for any reason until at least sixty (60) days prior written notice has been given by the insurer to the Department. A certificate of insurance or similar documentation showing such fidelity coverage to be in force shall be provided to the Department prior to the MALPB engaging in any merchant acquiring activities. The fidelity coverage shall be obtained from an insurance company licensed to do business in Georgia that continuously maintains an A.M. Best Company rating of at least A: VII while the policy is in effect. Such fidelity coverage shall continuously remain in full force and effect subject to Department approved revisions to the amount of coverage.
(3) The amount of the required fidelity coverage shall be the highest dollar amount of merchant transactions occurring in one day over the previous twelve (12) months for the MALPB or, if the MALPB does not have a twelve (12) month operating history, the highest projected merchant transaction dollar volume for one day. The amount of the initial fidelity coverage obtained by the MALPB, as well as subsequent amendments to the amount, shall be approved by the Department in writing prior to the MALPB obtaining the fidelity coverage or revising the amount of coverage.
(4) At the time of the submission of an MALPB charter application or at any time thereafter, an MALPB can make a written request to the Department for a reduction in the amount of fidelity coverage required under Paragraph 3. Such request shall set forth in detail the rationale for a reduction in the required coverage and the safeguards or protections which will be employed to ensure the continuing sound operation of the MALPB, which shall include, but not be limited to, an evaluation of potential exposures under various stress scenarios that include intentional and unintentional failures in the MALPB's control environment and the sufficiency of the proposed fidelity coverage to mitigate such exposures. It shall be in the Commissioner's sole discretion to approve, conditionally or otherwise, or deny the request for a reduction in the amount of required fidelity coverage.
O.C.G.A. §§
										7-9-3, 7-9-13.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-7 - SOLVENCY AND SAFEGUARDS › Rule 80-12-7-.05 - Dissolution

Current through Rules and Regulations filed through June 27, 2024
(1) Every MALPB shall continuously maintain a receivership letter of credit issued in favor of the Department to satisfy costs and expenses associated with a receivership of the MALPB. The letter of credit shall be in the principal sum of $100,000 or such greater amount as the Department may require based on its evaluation of the factors set forth in Rule  80-12-2-.08.
(2) In the event the Department takes possession of an MALPB pursuant to its enforcement powers, including, but not limited to O.C.G.A. §§
									7-1-92 or 7-1-150
et
seq
., the Department is authorized to utilize the receivership letter of credit provided to it by the MALPB to satisfy costs and expenses related to the receivership including, but not limited to, the costs and expenses incurred by the receiver or deputy receiver in administering the receivership.
O.C.G.A. §§
										7-9-3, 7-9-13.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-8 - ELIGIBLE AND SUPPORT ORGANIZATIONS › Rule 80-12-8-.01 - Eligible Organizations

Current through Rules and Regulations filed through June 27, 2024
(1) Upon obtaining written approval from the Department, an MALPB may contract with an eligible organization to perform administrative support, information technology support, financial support, or tax and finance support. In the event the MALPB applicant has a contract with an eligible organization at the time of the submission of its application, then the information required by this Rule must be submitted as part of the application. However, if an MALPB seeks to enter into a contract with an eligible organization after obtaining its charter, then the MALPB must obtain written approval from the Department prior to entering into the contract. Additional detail regarding the Department's review of the MALPB's proposed contractual relationship with the eligible organization may be set forth in the Department's Applications Manual or Statement of Policies.
(2) In order for the Department to evaluate a request from an MALPB to approve a proposed contract with an eligible organization, the MALPB must provide, at a minimum, the following information:
(a) A copy of the contract under which the services are to be provided which contract shall expressly provide that:
1. The records of the MALPB in the eligible organization's possession are subject to examination and regulation by the Department as if the records were maintained by the MALPB on its own premises;
2. The records of the MALPB in the eligible organization's possession shall be made available to the Department immediately upon receipt of notice;
3. The Department has the authority to review the internal routine and controls of the eligible organization to ascertain that the operations are being conducted in a manner that will not adversely impact the character, reputation, financial stability, and technology and information security systems of the MALPB; and
4. The eligible organization shall comply with all requirements applicable to the MALPB as if the services were provided directly by the MALPB;
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-8 - ELIGIBLE AND SUPPORT ORGANIZATIONS › Rule 80-12-8-.02 - Support Organizations

Current through Rules and Regulations filed through June 27, 2024
(1) An MALPB that enters into a contract with a support organization shall provide the Department with written notice of the contract within thirty (30) days after execution of the contract.
(2) An MALPB shall not execute a contract with a support organization unless the following information has been obtained:
(a) A copy of the contract, as well as any amendments to the contract, under which the services are to be provided which contract shall expressly provide that:
1. The records of the MALPB in the support organization's possession are subject to examination and regulation by the Department as if the records were maintained by the MALPB on its own premises;
2. The records of the MALPB in the support organization's possession shall be made available to the Department immediately upon receipt of notice;
3. The Department has the authority to review the internal routine and controls of the support organization to ascertain that the operations are being conducted in a manner that will not adversely impact the character, reputation, financial stability, and technology and information security systems of the MALPB; and
4. The support organization shall comply with all requirements applicable to the MALPB as if the services were provided directly by the MALPB;
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-8 - ELIGIBLE AND SUPPORT ORGANIZATIONS › Rule 80-12-8-.03 - Oversight of Eligible and Support Organizations

Current through Rules and Regulations filed through June 27, 2024
An MALPB contracting with an eligible organization or a support organization must have sufficient controls in place to monitor and ensure that the services provided by the eligible organization or support organization on behalf of the MALPB comply with the Act and the Rules. The MALPB must also employ good faith efforts to monitor the financial condition of the eligible organization or the support organization and must notify the Department immediately when it discovers or suspects that the eligible organization or support organization has experienced a net operating loss, is insolvent, or is engaged in illegal activity.
O.C.G.A. §§
										7-9-3, 7-9-13.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-8 - ELIGIBLE AND SUPPORT ORGANIZATIONS › Rule 80-12-8-.04 - Responsibility for Outsourced Services

Current through Rules and Regulations filed through June 27, 2024
An MALPB has the ability to enter into contracts with third parties, which includes, but is not limited to, eligible organizations, support organizations, independent contractors, and agents, to perform services related to the MALPB's authorized merchant acquiring activities. In the event an MALPB has a third party perform services related to its authorized merchant acquiring activities, the MALPB will remain responsible for these services being performed in compliance with the Act and the Rules.
O.C.G.A. §§
										7-9-3, 7-9-13.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-9 - RELATIONSHIPS WITH AFFILIATES AND INVESTMENTS AND DISTRIBUTIONS › Rule 80-12-9-.02 - Subsidiaries

Current through Rules and Regulations filed through June 27, 2024
(1) An MALPB can create a separate subsidiary to only carry out such activities that fall within the authorized scope of merchant acquiring activities as set forth in Rule  80-12-4-.01. Prior to utilizing the subsidiary, the MALPB must submit an application for approval describing the activity that the subsidiary will perform, how the proposed activity relates to the MALPB, and what protections will be in place to deal with any associated risks. The Department shall request additional information, approve, conditionally or otherwise, or deny a request for authorization to utilize a subsidiary within sixty (60) days after receipt of the application. In the event the Department does not take any of the above actions within sixty (60) days of receipt of the application, then the application will be deemed approved.
(2) Subsidiaries of an MALPB are subject to the same limitations and requirements that apply to an MALPB including, but not limited to, Rule  80-12-9-.01.
O.C.G.A. §§
										7-9-3, 7-9-13.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-9 - RELATIONSHIPS WITH AFFILIATES AND INVESTMENTS AND DISTRIBUTIONS › Rule 80-12-9-.03 - Investment of MALPB Funds

Current through Rules and Regulations filed through June 27, 2024
(1) Except as expressly authorized by this Rule or with the prior written approval of the Department an MALPB shall be precluded from making any investments. An MALPB may invest in the following investments:
(a) General obligations of the United States or of subsidiary corporations of the United States government fully guaranteed by such government, or to obligations issued and fully guaranteed by the Federal Land Bank, Federal Home Loan Bank, Federal Intermediate Credit Bank, Bank for Cooperatives, Federal Farm Credit Banks regulated by the Farm Credit Administration, Federal Home Loan Mortgage Corporation, or Federal National Mortgage Association;
(b) Tax exempt obligations issued by any state, county, municipal corporation, district, or political subdivision, or civil division or public instrumentality of any such government or unit of such government;
(c) Prime bankers' acceptances, or the units of any unit investment trusts the assets of which are exclusively invested in obligations of the type described in this rule provided that at the time of investment such obligations or the obligations held by any such unit investment trust are limited to obligations which are rated within one of the top two rating categories of any nationally recognized statistical rating organization;
(d) The shares of any mutual fund the investments of which are limited to securities of the type described in this Rule and distributions from which are treated for federal income tax purposes in the same manner as the interest on said obligations, provided that at the time of investment such obligations held or to be acquired by any such mutual fund are limited to obligations which are rated within one of the top two rating categories of any nationally recognized rating service;
(e) Securities lending transactions involving securities of the type described in this Rule; or
(f) Obligations of corporations organized under the laws of this state or any other state but only if the corporation has a market capitalization equivalent of $500 million and the obligation is rated in the highest ratings category by at least one nationally recognized statistical rating organization.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-9 - RELATIONSHIPS WITH AFFILIATES AND INVESTMENTS AND DISTRIBUTIONS › Rule 80-12-9-.04 - Dividends

Current through Rules and Regulations filed through June 27, 2024
The Board of Directors of any MALPB may declare and the MALPB may pay cash dividends as long as the Department has approved the proposed dividend in writing prior to the declaration and payment of the dividend. In evaluating any request for the payment of a dividend, the Department will consider, among other things, whether the MALPB will have an adequate capital structure after payment of the proposed dividend. Notwithstanding the above, the Department will not approve a proposed dividend under any circumstances if payment of the dividend would cause the MALPB to fall below the minimum leverage capital ratio requirement, PV capital, risk capital, or statutory capital requirement as set forth in Rule  80-12-7-.01.
O.C.G.A. §§
										7-9-3, 7-9-13.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-10 - CONTROL OVER MALPB › Rule 80-12-10-.01 - Change in Director, Executive Officer, Principal Shareholder, or Control Person of MALPB

Current through Rules and Regulations filed through June 27, 2024
(1) The MALPB must provide the Department with written notice of any new director, control person, principal shareholder, or executive officer, which includes, but is not limited to a chief executive officer, a chief information officer, and a chief risk officer, prior to any such appointment or change taking effect, so that the Department can consider the character and fitness of such person. After receipt of the notice, the proposed executive officers, directors, principal shareholders, and control persons will provide the Department with any information or documents the Department may request including, but not limited to: an independent credit report obtained from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act, 15 U.S.C. Section 1681 a(f); fingerprint cards for submission to the Federal Bureau of Investigation, the Georgia Crime Information Center, and/or any other government agency or entity authorized to receive such information in order to perform a state, national, and international criminal history background check along with the applicable fees and any other required information in order that the Department may submit the fingerprints; personal financial statements; and filed state, federal, and, if applicable, international income tax returns, including any amendments, for the previous two (2) completed taxable years.
(2) The Department shall be given at least sixty (60) days written notice prior to the proposed appointment or change of director, executive officer, principal shareholder, or control person taking effect. If the Department does not issue a notice disapproving such person within sixty (60) days after receipt of the required written notice or extend the period during which a disapproval may be issued for another thirty (30) days, the proposed appointment or change of such person shall take effect. The period for disapproval may be further extended if the Department determines that the MALPB or proposed director, executive officer, principal shareholder, or control person has not furnished all the information required by this Rule or, in the Department's judgment, inaccurate information has been submitted. An appointment or proposed change may be made prior to expiration of the disapproval period if the Department issues a written notice of its intent not to disapprove the proposed director, executive officer, principal shareholder, or control person.
(3) The requirements of this Rule shall not apply to an entity that satisfies the definition of control person as a result of ownership of a holding company that is a public company.
O.C.G.A. §§
										7-9-3, 7-9-13.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-11 - HOLDING COMPANY › Rule 80-12-11-.01 - Books and Records of Holding Company

Current through Rules and Regulations filed through June 27, 2024
(1) A holding company shall provide the Department with the following books and records within ten (10) days after issuance of the underlying document: copies of examination reports prepared by any agency, division, or instrumentality of the United States, the State of Georgia or any other state, or any foreign country which report relates to the merchant acquiring activities of the MALPB; copies of reports required to be prepared or submitted by the MALPB to any agency, division, or instrumentality of the United States, the State of Georgia or any other state, or any foreign country which report relates to the merchant acquiring activities of the MALPB; and copies of all orders, memoranda of understanding, or similar documents, including, but not limited to, resolutions of the Board of Directors intended as informal enforcement actions, issued by or entered into with any agency, division, or instrumentality of the United States, the State of Georgia or any other state, or any foreign country which report relates to the merchant acquiring activities of the MALPB.
(2) Failure to provide the documentation set forth in Paragraph 1 of this Rule, may result in the Department taking enforcement action against the holding company as well as the MALPB controlled by the holding company.
O.C.G.A. §§
										7-1-73, 7-9-3, 7-9-13.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-11 - HOLDING COMPANY › Rule 80-12-11-.02 - Change in Director, Executive Officer, Principal Shareholder, or Control Person of Holding Company

Current through Rules and Regulations filed through June 27, 2024
(1) The Department must approve in writing any new director, executive officer, principal shareholder, or control person of the holding company, prior to any such appointment or change taking effect, for the purpose of considering the character and fitness of such person. In order to make these determinations, such persons will provide the Department any information or documents requested by the Department including, but not limited to, an independent credit report obtained from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act, 15 U.S.C. Section 1681 a(f).
(2) The Department shall be given at least sixty (60) days written notice prior to the proposed appointment or change of director, executive officer, principal shareholder, or control person taking effect. If the Department does not issue a notice disapproving the proposed director, executive officer, principal shareholder, or control person within sixty (60) days of receipt of the required written notice or extend the period during which a disapproval may be issued for another thirty (30) days, such person shall stand approved. The period for disapproval may be further extended if the Department determines that the holding company or proposed director, executive officer, principal shareholder, or control person has not furnished all the information required by this Rule or, in the Department's judgment, inaccurate information has been submitted. An appointment or proposed change may be made prior to expiration of the disapproval period if the Department issues a written notice of its intent not to disapprove the proposed director, executive officer, principal shareholder, or control person.
(3) The requirements of Paragraphs 1 and 2 of this Rule shall not apply to the principal shareholders, executive officers, directors, and control persons of a holding company that is a public company.
O.C.G.A. §§
										7-1-73, 7-9-3, 7-9-6, 7-9-13.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-11 - HOLDING COMPANY › Rule 80-12-11-.03 - Lawful and Unlawful Acquisitions by a Company

Current through Rules and Regulations filed through June 27, 2024
(1) It shall be unlawful for:
(a) a holding company to acquire direct or indirect ownership or control of any voting shares of any MALPB, if, after such acquisition, such holding company will directly or indirectly own or control five (5) percent or more of the voting shares of such MALPB, or
(b) any company to become a holding company as a result of the acquisition or control of such MALPB,
unless the MALPB has been in existence and continuously operating as an MALPB for a period of three (3) years or more prior to the date of acquisition and the company has sought and obtained written approval from the Department prior to acquiring voting shares or the control of the MALPB.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-11 - HOLDING COMPANY › Rule 80-12-11-.04 - Source of Strength

Current through Rules and Regulations filed through June 27, 2024
A holding company shall serve as a source of strength to its MALPB subsidiary and shall, upon request by the Department, provide a capital maintenance guaranty.
O.C.G.A. §§
										7-9-3, 7-9-13.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-12 - MERCHANT ACQUIRER LIMITED PURPOSE BANKS › Subject 80-12-12 - FINES AND FEES › Rule 80-12-12-.02 - Application, Examination, and Other Fees

Current through Rules and Regulations filed through June 27, 2024
(1) The Department establishes the following fees related to the regulation of MALPBs, their holding companies, their affiliates, and their subsidiaries:
(a) An application fee of $50,000 will be remitted to the Department at the time of delivery of the MALPB application.
(b) In addition to any fees imposed by third-party experts acting as special examiners, an MALPB, its holding company, affiliates, or subsidiaries shall pay an examination fee to the Department at the rate of $100 per examiner hour.
(c) A holding company of an MALPB shall pay on or before January 31 of each year an annual registration fee of $5,000.
(d) A holding company of an MALPB shall pay on or before January 31 of each year an additional $1,000 for each non-MALPB subsidiary of the holding company but, in no event, shall this annual fee exceed $20,000.
(e) An MALPB shall pay on or before January 31 of each year an annual supervision fee of $10,000.
(f) An MALPB seeking approval for additional physical locations pursuant to Rule  80-12-6-.02  shall pay an investigation fee of $1,250 for each additional proposed location it seeks to have approved.
(g) An MALPB seeking approval for the creation of a separate subsidiary pursuant to Rule  80-12-9-.02  shall pay an investigative fee of $1,000 to the Department.
(h) An application seeking approval of the acquisition of an MALPB pursuant to Rules  80-12-10-.02  or  80-12-11-.03  shall pay an investigative fee of $10,000 to the Department.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.01 - Definitions

Current through Rules and Regulations filed through June 27, 2024
(1) As used in
				Chapters 80-13-1, the terms that are defined in O.C.G.A. §
									7-1-4 shall have the identical
				meaning.
(2) As used in Chapters
				80-13-1, the below terms shall be defined as follows unless the term is
				otherwise defined in a specific rule:
(a)
				"External auditor" means an outside compensated, Certified Public Accountant
				(CPA) that is independent or works for an entity that is independent of the
				institution being audited.
(b)
				"Fiduciary account" means an account administered by a trust company when it is
				acting in a fiduciary capacity including, but not limited to, a trustee,
				executor, administrator, registrar of stocks and bonds, transfer agent,
				guardian, receiver, custodian under a uniform gifts to minor act, investment
				advisor if the trust company receives a fee for the investment advice, any
				capacity in which the trust company possess investment discretion on behalf of
				another, or any other similar capacity designated as such by the
				Department.
(c) "Independent" means
				an auditor must be personally and financially independent from the trust
				company's employees, members of the board of directors, and members of their
				immediate families.
(d) "Investment
				discretion" means, with respect to an account, the sole or shared authority
				(whether or not that authority is exercised) to determine what securities or
				other assets to purchase or sell on behalf of the account.
(e) "Service Contract" shall mean a contract
				executed by a trust company and a third party service provider to provide
				financial services, whether direct or indirect, to the trust company.
(f) "Third party service provider" shall mean
				any provider of financial services to a trust company as authorized by O.C.G.A.
				§
										7-1-72.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.02 - Minimum Capital Requirements for Trust Companies

Current through Rules and Regulations filed through June 27, 2024
(1) Pursuant to O.C.G.A. §
									7-1-317, a trust company must maintain, at a minimum, $3 million in capital. The Department will evaluate the factors set forth in O.C.G.A. §
									7-1-317 in analyzing a trust company's capital adequacy and may determine that the capital required is greater than $3 million.
(2) The amount of the initial capital requirement maintained by a trust company shall be established by the Department in writing prior to the trust company beginning business. Further, any revision to the capital requirement maintained by a trust company shall be established in writing by the Department prior to the trust company implementing the revised capital ratio. It shall be in the Commissioner's sole discretion to determine the capital ratio required to be maintained by each trust company.
(1) A trust company with less than the minimum capital requirement:
(a) Is operating with inadequate capital and, therefore, has inadequate financial resources. Thus, at the discretion of the Department, such trust company may be deemed to be operating in an unsafe or unsound or unauthorized manner and subject to the Department's enforcement powers.
(b) Must file a written capital restoration plan with the Department within thirty (30) days of the date that the trust company knows or should have known that the trust company is operating with an inadequate capital structure, unless the Department notifies the trust company in writing that the plan is to be filed within a different period.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.03 - Trust Company Independent Audits

Current through Rules and Regulations filed through June 27, 2024
(1) Every trust company shall have an opinion audit of its books and records performed at least annually by a licensed external auditor in accordance with generally accepted auditing standards and procedures. The audit must be of sufficient scope to enable the auditor to render an opinion on the financial statements of the trust company, consolidated holding company, or parent company. Such audit shall include a review of the trust company's internal controls, fiduciary activities (pursuant to agreed-upon procedures), fiduciary accounts, affirmative verifications of investments and deposits made by the trust company, adequate testing and review of the trust company's information technology activities, and such other tests and reviews of trust company records as deemed appropriate by the external auditor. The extent of the audit work should be clearly defined in engagement letters. Such letters should discuss the scope of the audit, the objectives, resource requirements, audit timeframe, and resulting reports. External auditors must make their audit work papers, policies, and procedures available to Department examiners for review upon request.
(2) The external auditor should be generally familiar with the statutes, rules, and regulations under which the trust company being audited operates, and with its charter and bylaw provisions. The annual audit should incorporate the necessary procedures to satisfy the auditor that there is compliance with the applicable requirements that might materially affect the trust company's financial position or operation.
(3) Audit reports in which the auditor expresses an unqualified opinion shall be provided to the Department upon request. Audit reports in which the auditor expresses anything other than an unqualified opinion, including, but not limited to, a qualified opinion, an adverse opinion, or a disclaimer of opinion, shall be provided to the Department within fifteen (15) days following receipt by the financial institution. Audit reports submitted to the Department shall be accompanied by the Letter to Management, if applicable, detailing any reportable conditions discovered during the audit engagement. Failure to obtain the required opinion audit, or the auditor's report thereof, shall be reported to the Department within fifteen (15) days of discovery.
O.C.G.A. §
										7-1-61.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.04 - The Internal Auditor of a Trust Company

Current through Rules and Regulations filed through June 27, 2024
(1) Internal Audit System. An institution should have an internal audit system that is appropriate to the size of the institution and the nature and scope of its activities. The internal audit system should consist of qualified persons. The internal audit system shall provide for:
(a) Adequate monitoring of the system of internal controls through an internal audit function;
(b) Adequate testing and review of information systems;
(c) Adequate documentation of tests and findings and any corrective actions;
(d) Verification and review of management actions to address material weaknesses; and
(e) Review by the institution's audit committee or board of directors of the effectiveness of the internal audit systems.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.05 - Audit Committee

Current through Rules and Regulations filed through June 27, 2024
A trust company shall have an audit committee. The audit committee must consist of a committee of the trust company's directors or directors of an affiliate of the trust company. However, in either case, the committee:
(a) Must not include any officers of the trust company or an affiliate who participate significantly in the administration of the trust company's fiduciary activities; and
(b) Must consist of a majority of members who are not also members of any committee to which the board of directors has delegated power to manage and control the fiduciary activities of the trust company.
O.C.G.A. §
										7-1-61.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.06 - Insurance Coverage for Trust Companies

Current through Rules and Regulations filed through June 27, 2024
(1) Every stand-alone trust company chartered by the Department shall obtain the following:
(a) Fidelity insurance coverage, such as a fidelity bond, to provide protection and indemnity against theft, defalcation, or other similar actions by officers and employees of the trust company as well as agents and independent contractors of the trust company, related to fiduciary accounts, customer funds, and assets of the trust company.
(b) Data breach insurance coverage to provide protection and indemnity against the release of nonpublic confidential information in the legal care, custody or control of the trust company to an untrusted or unauthorized environment or other similar action by the trust company as well as agents and independent contractors of the trust company.
(c) Fiduciary liability insurance coverage or its equivalent to provide protection and indemnity against errors or omissions or breach of fiduciary duties by officers and employees of the trust company as well as agents and independent contractors of the trust company, related to fiduciary accounts and customer funds. Further, every trust company shall require agents and independent contractors of the trust company that have access to fiduciary accounts or customer funds to obtain fiduciary liability insurance coverage or its equivalent to provide protection and indemnity against errors or omissions or breach of fiduciary duties.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.07 - Review of Fiduciary Accounts

Current through Rules and Regulations filed through June 27, 2024
(1) Before accepting a fiduciary account, a trust company shall review the prospective account to determine whether it can properly administer the account.
(2) Upon the acceptance of a fiduciary account for which a trust company has investment discretion, the trust company shall conduct a prompt review of all assets of the account to evaluate whether they are appropriate for the account.
(3) At least once during every calendar year, a trust company shall conduct a review of all assets of each fiduciary account for which the bank has investment discretion to evaluate whether they are appropriate, individually and collectively, for the account.
O.C.G.A. §
										7-1-61.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.08 - Custody of Fiduciary Assets

Current through Rules and Regulations filed through June 27, 2024
(1) A trust company shall place assets of fiduciary accounts in the joint custody or control of not fewer than two of the fiduciary officers or employees designated for that purpose by the Board of Directors. A trust company may maintain the investments of a fiduciary account off-premise, if consistent with applicable law and if the trust company maintains adequate safeguards and controls.
(2) A trust company shall keep the assets of fiduciary accounts separate from the assets of the trust company. A trust company shall keep the assets of each fiduciary account separate from all other accounts or shall identify the investments as the property of a particular account, except as provided in 12 CFR §
										9.18 for collective investment funds.
O.C.G.A. §
										7-1-61.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.09 - Receivership of Trust Company

Current through Rules and Regulations filed through June 27, 2024
If the Department is appointed receiver of a trust company or appoints a receiver of a trust company, the receiver shall promptly close or transfer to a substitute fiduciary all fiduciary accounts in accordance with Department instructions or the orders of the court having jurisdiction.
O.C.G.A. §
										7-1-61.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.10 - Collective Investment Funds

Current through Rules and Regulations filed through June 27, 2024
A trust company administering a collective investment fund authorized under O.C.G.A. §
									7-1-313 shall comply with the following requirements:
(1) The trust company shall develop, and the Board of Directors must approve, a collective investment fund plan that must contain appropriate provisions, not inconsistent with this part, regarding the manner in which the trust company will operate the fund, including provisions relating to:
(a) Investment powers and policies with respect to the fund;
(b) Allocation of income, profits, and losses;
(c) Fees and expenses that will be charged to the fund and to participating accounts;
(d) Terms and conditions governing the admission and withdrawal of participating accounts;
(e) Audits of participating accounts;
(f) Basis and method of valuing assets in the fund;
(g) Expected frequency for income distribution to participating accounts;
(h) Minimum frequency for valuation of fund assets;
(i) Amount of time following a valuation date during which the valuation must be made;
(j) Bases upon which the trust company may terminate the fund; and
(k) Any other matters necessary to define clearly the rights of participating accounts.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.11 - Permissible Investments and Limitations of Trust Companies

Current through Rules and Regulations filed through June 27, 2024
Subject to such further restrictions and approvals as its board of directors may set forth in its investment policy, a trust company may purchase, sell, and hold securities, for its own behalf, the following:
(1) Debt Obligations.
(a) Obligations of the United States Government or Agencies of the United States Government.
The following may be held without limitation:
1. Securities issued by the United States government or an agency of the United States government;
2. Securities guaranteed as to principal and interest by the United States government or an agency of the United States government;
3. Securities issued under the U.S. Treasury's Separate Trading of Registered Interest and Principal (STRIP's) program, which are offered in book entry form and which are direct obligations of the U.S. Government, as authorized by Subtitle III, Chapter 31 of Title 31 U.S.C.; and
4. Securities which are pre-refunded, with the redemption proceeds invested in securities issued by the United States Government or an Agency of the United States Government.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.12 - Self-dealing and Conflicts of Interest

Current through Rules and Regulations filed through June 27, 2024
(1) Unless authorized by applicable law, a trust company may not invest funds of a fiduciary account for which a trust company has investment discretion in the stock or obligations of, or in assets acquired from: the trust company or any of its directors, officers, or employees; affiliates of the trust company or any of their directors, officers, or employees; or individuals or organizations with whom there exists an interest that might affect the exercise of the best judgment of the trust company. Notwithstanding the above, a trust company may invest such stock or obligations as part of an index pursuant to an index or model portfolio strategy unless the index was formed or otherwise created or is managed by the trust company.
(2)
(a) A trust company may not lend, sell, or otherwise transfer assets of a fiduciary account for which a trust company has investment discretion to the trust company or any of its directors, officers, or employees, or to affiliates of the trust company or any of their directors, officers, or employees, or to individuals or organizations with whom there exists an interest that might affect the exercise of the best judgment of the trust company, unless:
1. The transaction is authorized by applicable law;
2. Legal counsel advises the trust company in writing that the trust company has incurred, in its fiduciary capacity, a contingent or potential liability, in which case the trust company, upon the sale or transfer of assets, shall reimburse the fiduciary account in cash at the greater of book or market value of the assets;
3. As provided in 12 CFR §
												9.18(b)(8)(iii) for defaulted investments; or
4. Required in writing by the Department.
Compilation of Rules and Regulations of the State of Georgia › Department 80 - RULES OF DEPARTMENT OF BANKING AND FINANCE › Chapter 80-13 - TRUST COMPANIES › Subject 80-13-1 - TRUST COMPANIES › Rule 80-13-1-.13 - Dividends

Current through Rules and Regulations filed through June 27, 2024
(1) The Board of Directors of any trust company may declare and the trust company may pay dividends on its outstanding capital stock without any requirement to notify the Department or request the approval of the Department if the aggregate amount of dividends declared or anticipated to be declared in the calendar year does not:
(a) exceed fifty (50) percent of the net income, in accordance with Generally Accepted Accounting Principles, that is attributable solely to a trust company that is a Subchapter C-Corporation for the previous calendar year; or
(b) exceed seventy-five (75) percent of the net income, in accordance with Generally Accepted Accounting Principles, that is attributable solely to a trust company that is a Subchapter S-Corporation for the previous calendar year.