State of California
|Gray Davis, Governor||
Business Transportation and
Seven Defendants Prosecuted on Charges of Illegal Transmission of Money Abroad
The California Attorney General is prosecuting seven defendants for illegal transmission of money abroad in the Los Angeles County Superior Court. The defendants were arrested by the Los Angeles Police Department in April 2002, and the California Attorney General filed criminal felony complaints against them for violation of Financial Code section 1823 in July 2002. The preliminary hearing is currently scheduled for September 25, 2002. If convicted on the felony counts for violation of Financial Code section 1823, each defendant faces a potential prison term of 16 months to 36 months. The seven defendants were not licensed by the Department to transmit money abroad.
The Department assisted the Los Angeles Police Department after they contacted us by issuing warning letters and making referrals. The Department continues to encourage and support criminal investigations and enforcement against alleged illegal money transmitters in California. The Department receives information about unlicensed money transmission activity from time to time, and initiates enforcement action against those persons who are apparently operating as unlicensed money transmitters by sending out a cease and desist warning letter. In addition, the Department will refer that person for criminal and civil prosecution to appropriate federal and state officials in accordance with Financial Code sections 260 and 262.
Notice of Assessment Rates for Banks, Foreign Banks and Trust Companies
The base rate will increase slightly from $0.98 to $1.038585. This rate reflects the need to maintain a prudent level of reserves in the Banking Fund. Invoices were mailed to each licensee on August 30, 2002 and become delinquent if not paid by September 20, 2002.
Subsequently, it came to the attention of the Department of Financial Institutions that a clerical error occurred in preparing the 2002 annual assessments sent to all California state commercial banks and trust companies as well as all foreign (other nation) banks licensed to maintain agencies or branch offices in California. Please be advised that the order dated August 22, 2002, nunc pro tunc July 1, 2002, was rescinded on August 27. That order set a base assessment rate of $1.03 and established the date the total resources were determined as March 31, 2002. The letter dated August 30, which accompanied the rescinded order quoted that incorrect assessment rate.
On August 27, 2002, the Commissioner of Financial Institutions executed a new Order that set the base assessment rate at $1.038585. In addition, the new Order set June 30, 2002, as the date the total resources were determined for purposes of the assessment. The assessment invoice that accompanied the earlier mailing properly reflects the calculations set forth in the new Order. The assessment invoice states the correct amount to be paid by each bank. The assessment is to be paid in full by September 20, 2002. We apologize for any inconvenience the error may have caused the Department's licensees.
Notice of Assessment for Industrial Banks
The assessment rate for industrial banks this year is $0.80231 compared to $0.7641 for the fiscal year ended June 30, 2001. Invoices will be mailed to each licensee on August 30, 2002 and become delinquent if not paid by September 20, 2002. Insurance premium finance companies will be assessed on November 30, 2002.
Notice of Assessment for State Chartered Credit Unions
The 2001-02 assessment rate for credit unions is unchanged from last years rate of $0.747282343. Invoices will be mailed to each licensee on August 30, 2002 and become delinquent if not paid by September 20, 2002.
Notice of Assessment for State Chartered Savings and Loan Associations
The 2001-02 assessment rate for savings and loan associations is unchanged from last years rate of $0.495100. Invoices will be mailed to each licensee on August 30, 2002 and become delinquent if not paid by September 20, 2002
Notice of Assessment for Local Agency Depositories
The 2001-02 assessment rate for local agency depositories is unchanged from last years rate of $.00007121. Invoices will be mailed to each licensee on August 30, 2002 and become delinquent if not paid by September 20, 2002.
Financial Institutions May Seek Federal Sponsorship of GETS Cards
The Federal Deposit Insurance Corporation (FDIC) published a document that explains how financial institutions may seek federal sponsorship for the issuance of Government Emergency Telecommunications Service (GETS) Cards. The Office of the Comptroller of the Currency and the Office of Thrift Supervision had released their documents in July. The GETS Card Program is a telecommunications voice service that provides emergency access and priority processing for voice communications services in the local and long-distance segments of the publicly switched network, FDIC said. Generally, financial institutions that perform national security or emergency preparedness functions essential to the maintenance of the nation's economic posture during any national or regional emergency will qualify for program sponsorship. To learn more, go to:
Commissioner Meets with FDIC Ombudsman
Commissioner Donald Meyer and DFI staff recently met with the FDIC's Ombudsman Webster Cottrell, Deputy Ombudsman Leslie Crawford, and Regional Ombudsman Mark Randall. The mission of the Office of the Ombudsman is to be an effective, neutral, and confidential resource and liaison for the banking industry and the general public; to facilitate the resolution of problems and complaints in a fair, impartial and timely manner; to provide prompt and meaningful feedback; and to influence positive change at the FDIC. To reach the Office of the Ombudsman, call 1-877-ASK-FDIC (877-275-3342), and press Option 3 on the FDIC Central Call Center menu. To talk to the Regional Ombudsman for our region directly, call Mark Randall at 415-808-8182.
The July 2002 notice regarding the provisions of Division 1.6 of the Financial Code becoming effective for loans originated on, or after, July 1, 2002 stated that the provisions commenced with Section 4900 of the Code. Please note that Division 1.6 of the Code commences with Section 4970. We regret any inconvenience caused by this error.
Monthly Activity Report
Commercial Bank Activity
Conversion to State Charter
Nara Bank, National Association, Los Angeles, to
convert to a state-chartered bank under the name Nara Bank
Cerritos Valley Bank, Artesia, with and into Bank of
Orange County, Orange
Upland Bank, Upland, with and into Pacific Western National
Bank, Santa Monica
Purchase of Partial Business Unit
Gateway Business Bank, Lakewood, to acquire the
Laguna Hills Branch of eosbank, San Mateo
Security Business Bank of San Diego (In Organization), San
Diego, to acquire the San Diego Branch of Manufacturers Bank, Los Angeles
Acquisition of Control
First Financial Holding Company, Ltd, to require
control of First Commercial Bank (USA), Alhambra
Shawn L. Devlin, to acquire control of River City Bank,
Industrial Bank Activity
Acquisition of Control
Affinity Bank Holdings, Inc. and Stephen Adams, to
acquire control of Southern Pacific Bank, Torrance
Premium Finance Company Activity
New Premium Finance Company
G.A.S. Premium Finance, Inc.
Revocation of License
1st Choice Premium Finance Corp.
INAC Corp. of California
Western Agency Services, Inc.
Voluntary Surrender of License
Beacon Finance Corporation
Foreign (Other Nation) Bank Activity
Discontinuance of Offices
Arab Banking Corporation (B.S.C.)
Foreign (Other State) Bank Activity
The Northern Trust Company of Connecticut (Facility
Sunrise Bank of Arizona (Facility Insured Bank)
Discontinuance of Facility
JPMorgan Chase Bank (Facility Insured Bank)
Credit Union Activity
Central Valley Credit Union, Modesto, into MOCSE
Central Valley Federal Valley Union, Modesto
Sharp Federal Credit Union, San Diego, into Cabrillo Credit
Union, San Diego
Field of Membership
Fifteen credit unions received approvals to add 97 new fields of membership, and one credit union received denial to add one new field of membership during July 2002.
Two credit unions received approvals for 3 bylaw amendments during July 2002.
Transmitter of Money Abroad Activity
Voluntary Surrender of License
FEBTC Speed Remittance Inc.
DONALD R. MEYER
Bulletin for month ended
August 2002, issued pursuant
to Financial Code, Section 258
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