Monthly Bulletin – November 2000

State of California

Gray Davis, Governor

Business Transportation and Housing Agency
Maria Contreras-Sweet, Secretary

Department of Financial Institutions

California Seal

Monthly Bulletin

Volume 4, Number 5

November, 2000

John Connell New Chief Administrative Officer

Commissioner Donald R. Meyer announced that John Connell became the Department of Financial Institutions’ (DFI) Chief Administrative Officer effective Wednesday, November 1, 2000. He replaces Phyllis Garrett, who retired with 25 years of service with DFI and the State Banking Department. Mr. Connell is responsible for the financial, personnel and administrative functions of DFI.

Mr. Connell has devoted his career to public service and brings 23 years of management experience in state government. He comes to us from the Department of Food & Agriculture (CDFA) where he served as Branch Chief. In that position, he managed a staff of 200, with 21 field locations, and a budget of over $20 million, including several programs that are funded by special industry assessments.

He has an extensive background in quality management and is an examiner for the California Council of Quality and Service. As a part of the CDFA’s executive team, Mr. Connell served as a member of the strategic planning team and was team facilitator for the Information Systems Strategic Plan. He was an organizing member of the Davis Administration’s Government Innovation Team, and will be a welcome addition to DFI’s executive staff.

Mr. Connell is a graduate of San Jose State University with a degree in biology and chemistry. He is located in the Sacramento Office. He can be contacted at (916) 322-2391 or by e-mail at

Closing of Caribbean-American Credit Union

And Assumption of Member Share Accounts by Hughes Aircraft Employees Federal Credit Union

On November 22, 2000, Caribbean-American Credit Union (CACU"), Los Angeles, California, was closed, and all of the member share accounts of CACU were assumed by Hughes Aircraft Employees Federal Credit Union, Los Angeles, California.

The Commissioner issued his Proposed Order Taking Possession of Business and Assets of CACU, along with his Notice of Intention to Take Possession and a Statement Regarding Hearing on November 16, 2000. After no request for hearing was received, on November 22, 2000, the Commissioner took possession of CACU and ordered that it be liquidated. The Commissioner then tendered to the National Credit Union Administration ("NCUA") the appointment as Liquidating Agent for CACU, and the NCUA accepted the appointment.

On the same date, the NCUA began transferring all of the member share accounts and, subject to certain exceptions, all remaining assets of CACU to Hughes Aircraft Employees Federal Credit Union pursuant to a purchase and assumption agreement. The transfer is scheduled to be completed on November 30, 2000.

Industrial Bank Assessment under FC 1403 Due

Industrial banks will receive their first assessment pursuant to Financial Code Section 1403, one of the laws that came into effect when Governor Gray Davis signed SB 2148 on September 30, 2000. Invoices were mailed on November 29, 2000 and are due upon receipt. Payment must be received in the San Francisco office no later than December 18, 2000, however, industrial banks that paid an exam fee during the current fiscal year will receive a credit for the fee against this assessment, not to exceed the total assessment due.

The base rate for this assessment is $0.491113. It covers the seven-month period from December 1, 2000 to June 30, 2001. The next annual assessment will be on July 1, 2001 and on July 1 each year thereafter. For more information please contact Assistant Deputy Commissioners Douglas Kirkpatrick at (213) 897-2223 Ext. 116, or Craig Carlson at (858) 642-4241.

Insurance Premium Finance Company Assessment Due

Invoices for the insurance premium finance company assessment, were mailed on November 29, 2000. The invoice is due when received and becomes delinquent if not paid within 20 days. After 20 days, the Commissioner shall assess and collect a penalty in addition to the assessment of one (1) percent of the assessment for each month or part of a month that the payment is delayed or withheld, as authorized by Section 18351. If an insurance premium finance company fails to pay the assessment as provided in Section 18350 on or before the 30th day of December following the day upon which payment is due, the Commissioner may by order summarily suspend or revoke that company’s authority to conduct business.

Unlicensed Transmitter Report now on DFI Web Site

The Department of Financial Institutions has developed a form to facilitate the filing of complaints regarding unlicensed transmitters of money abroad. The purpose of the form is to gather information from the industry and the public to determine the extent, if any, of unlicensed transmitter activity and to enable the Department to take steps necessary to eliminate unlicensed operations. If you would like to inform the Department of a person or company that appears to be receiving money in California for the purpose of sending it abroad, but is not licensed as a transmitter of money abroad, please complete the form located on our Web site at and submit the form to us with the required documentation.

Administrator of Local Agency Security

Assembly Bill 2866, which was approved by Governor Gray Davis on July 8, 2000, amended Section 53661 of Division 2 of Title 5 of the Government Code. This legislation designated the Commissioner of Financial Institutions as the Administrator of the Local Agency Security Program instead of the State Treasurer.

Effective January 1, 2001, the Commissioner of Financial Institutions shall act as Administrator of Local Agency Security. To implement the legislation, the administration of the Local Agency Security Program will move from the State Treasurer’s office to the Department of Financial Institutions in Sacramento. Prior to the end of December, the State Treasurer’s Office will send a letter to each depository that will provide more information regarding future reporting requirements.

After January 1, 2001, all Called Reports, Weekly Reports, Collateral Transfers and all other correspondence associated with the Local Agency Security Program should be sent to:

Department of Financial Institutions
Administrator of Local Agency Security Program
1810 – 13th Street
Sacramento, CA 95811

If you have any questions, please contact Patrick Lum at (916) 654-9201. After January 1, 2001, please contact Mr. Lum at (916) 322-5966.

Live Scan Fingerprinting

The Department of Financial Institutions (DFI) is pleased to announce that for those applications filed with the Department which require background checks be performed on the applicants, a new and quicker process for fingerprinting is now available. It is called Live Scan and results are received by the DFI from the Department of Justice (DOJ) in a matter of days. Not only does the DFI receive background check results quicker, but rejects, requiring submission of a second set of fingerprints, are reduced due to improved technology. The process involves the applicant going to a Live Scan Service Center where the fingerprints are taken and sent to DOJ electronically. A list of Live Scan Service Centers is available at It may be necessary to arrange an appointment for fingerprinting, and the applicant is responsible for any fee charged. No fee is submitted to the DFI for fingerprinting under the Live Scan system. Live Scan forms can be obtained from the Assistant Deputies in each of our offices.

Fingerprinting may continue to be done by the use of fingerprint cards, but this method is much slower.

Executive Officer and Director Compensation Survey Results Released

During the month of November, 2000 the Department of Financial Institutions released the results of the Executive Officer and Director Compensation Survey to all participating state banks, national banks and industrial banks. The Executive Summary is posted on our Web site at Copies of the complete survey are available to non-participants from Patrick Carroll at (415) 263-8559 or by email at

Monthly Activity Report

Commercial Bank Activity

New Banks

Proposed Location: Broadway and Stowell Road, Santa Maria, Santa Barbara County
Correspondent: James D. Glines
2429 Professional Parkway #103
Santa Maria, CA 93455
Phone: (805) 934-8525
Approved: 11/8/00

7728 Regents Road
San Diego, CA 92122, San Diego County
Officers: Robert B. Hildt, President & Chief Executive Officer Officer;
James H. Burgess, Executive Vice President & Chief Financial Officer
Phone: (858)-677-7860
Capitalization: $11,499,580
Opened: 11/17/00

Proposed Location: Sunland Boulevard and Glenoaks Boulevard, Sun Valley, Los Angeles County
Correspondent: Gary Steven Findley
Gary Steven Findley & Associates
1470 North Hundley Street
Anaheim, CA 92806
Phone: (714) 630-7136
Approved: 11/8/00

1045 West Katella Avenue, Orange, CA 92867, Orange County
Officers: Larry A. Sallinger, President & Chief Executive Officer
Jerro Otsuki, Senior Vice President & Chief Financial Officer
Phone: (714) 997-1359
Capitalization: $6,080,500
Opened: 11/20/00

Proposed Location: 1003 West San Marcos Boulevard, San Marcos, San Diego County
Correspondent: Grace Wickersham
Carpenter & Company
5 Park Plaza, Suite 950
Irvine, CA 92614
Phone: (949) 261-8888
Filed: 11/1/00

Proposed Location: 3576 Arlington Avenue, Riverside, Riverside County
Correspondent: Kerry Pendergast
3576 Arlington Avenue, Suite 300
Riverside, CA 92506
Phone: (909) 201-2224
Approved: 11/7/00

Proposed Location: 199 South Los Robles Avenue, Suite 350, Pasadena, Los Angeles, County
Correspondent: Howard A. Shields
199 South Robles Avenue, Suite 350
Pasadena, CA 91101
(626) 395-7000
Approved: 11/18/00


Bank of San Francisco, San Francisco, with and into Redwood Bank, San Francisco
Filed: 10/26/00

Commercial Bank of San Francisco, with and into Redwood Bank, San Francisco
Effected: 10/31/00

First Bank of California, Sacramento, with and into Redwood Bank, San Francisco and to change the name of the resulting bank to First Bank & Trust
Effected: 10/31/00

First Bank & Trust, Newport Beach, with and into Redwood Bank, San Francisco
Effected: 10/31/00

First Bank Texas National Association, Houston, Texas, with and into Redwood Bank, San Francisco
Effected: 10/31/00

First Security Bank of New Mexico, N.A. Albuquerque, New Mexico, with and into Bank of the West, Walnut Creek
Filed: 11/16/00

Kermit State Bank, Kermit, Texas, with and into Cathay Bank, Los Angeles
Approved: 11/21/00

Acquisitions of Branch Offices

Scott Valley Bank, Yreka, to acquire the Weaverville Branch of Six Rivers National Bank, Eureka
Approved: 11/6/00
Effected: 11/20/00

Bank of the West, Walnut Creek, to acquire seven branch offices of First Security Bank of Nevada, Las Vegas, Nevada
Filed: 11/16/00

Foreign Bank Activity

New Foreign (Other State) Bank

Boston Private Bank and Trust Company
(Headquarters: Boston, Massachusetts)
Proposed Location: 3000 Sand Hill Road, Building 3, Suite 150, Menlo Park
(Facility – Insured Bank)
Contact person: John H. Sears
Sheppard, Mullin, Richter & Hampton
Four Embarcadero Center, Seventeenth Floor
San Francisco, CA 94111-4106
Phone: (415) 434-9100
Notified: 11/20/00

New Foreign (Other Nation) Bank

Bank Austria Aktiengesellschaft
(In connection with the corporate reorganization of Bank Austria AG)
50 California Street, San Francisco
(Representative Office)
Filed: 11/1/00
Approved: 11/1/00
Effected: 11/3/00

Foreign (Other Nation) Bank – Voluntary Surrender of License

Bank Austria Aktiengesellschaft
(In connection with the corporate reorganization of Bank Austria AG)
50 California Street, San Francisco
(Representative Office)
Effected: 11/3/00

Credit Union Activity


Anaheim City Employees Credit Union d.b.a. Anaheim Area Credit Union, Anaheim, with and into Orange County’s Credit Union, Santa Ana
Effected: 10/31/00

Associates Mechanical Federal Credit Union, San Diego, with and into Point Loma Credit Union, San Diego
Effected: 10/5/00

Conversions to State Charter

Long Beach Schools Federal Credit Union, Long Beach
Approved: 11/2/00

Matadors Federal Credit Union, Northridge
Approved: 11/6/00

North County Federal Credit Union, La Jolla
Approved: 11/20/00

North Island Federal Credit Union, San Diego, to convert to state charter under the name North Island Credit Union, San Diego
Approved: 8/16/00
Effected: 11/7/00

USC Federal Credit Union, Glendale
Approved: 11/15/00

Ventura County Federal Credit Union, Glendale
Approved 11/6/00

Whittier Area Federal Credit Union, Glendale
Approved: 11/6/00

Transmitters of Money Abroad Activity

New Transmitters

ABC Money Transactions, Inc.
Denied: 5/19/00

Envios R.D. Corp.
Filed: 11/15/00

EXTAR Company
Filed: 10/26/00


Commissioner of Financial Institutions

Bulletin for month ended
November, 2000, issued pursuant
to Financial Code, Section 258

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