State of California
|Gray Davis, Governor||
Business Transportation and Housing Agency
|Department of Financial Institutions||
|Volume 5, Number 4||
DFI Licensees Directed to Comply with OFAC
On September 23, 2001, President George W. Bush issued an Executive Order targeting terrorists by blocking property of and prohibiting transactions with persons who commit, threaten to commit, or support terrorism. These names have been added to the Office of Foreign Assets Control’s (OFAC) Specially Designated Nationals and Block Persons list under the Order. These assets need to be blocked with immediate notice given to OFAC. The complete text of the Order is available at www.treas.gov/ofac/t11edit.html and includes a list of all persons specifically identified to pose a significant risk to national security and the economy of the United States.
The Department of Financial Institutions expects its licensees to already have procedures in place to guard against transactions that are banned by OFAC. Please review your procedures to assure that you are in compliance with OFAC’s directions. In addition, please review the list and your transaction records for entries associated with these names. You are directed to report any transactions of the past or any current attempts to conduct financial transactions immediately to OFAC’s hotline at 1-800-540-6322 and to notify the Department of Financial Institutions of any reports you make to OFAC.
Soldiers’ and Sailors’ Civil Relief Act
The Department would like to direct financial institutions’ attention to the Soldiers’ and Sailors’ Civil Relief Act that requires a lender to lower its interest rate to 6% on loans made to qualified borrowers prior to their entry to military service. The 6% interest rate is to remain in effect throughout the borrower’s term of active duty. Any person on active duty in the United States Army, Air Force, Navy, Marine Corps and the Coast Guard; any officer of the Public Health Service on active duty with the armed forces; and any U.S. citizen serving with the armed forces of any allied nation is entitled to relief under the Act. A lender’s rights to collect a debt (including from a cosigner or guarantor) and liquidate collateral also are restricted under the Act. Provisions of the Act can be found at 50 U.S.C. Appendix, Sections 501-592, and also are available on the web sites of the armed forces (e.g., http://usmilitary.about.com/library/milinfo/sscra/blsscra.htm)
California Electronic Benefit Transfer (EBT) Program
The California Electronic Benefits Transfer (EBT) Program is a system to deliver food stamp and cash assistance benefits via a state-issued debit card. EBT will provide access to cash benefits at a wide network of POS and ATM locations.
Beginning in 2002, many Californians who are participating in the California Work Opportunity and Responsibility for Kids (CalWORKs) program will begin receiving their cash benefits directly through EBT.
EBT will provide economic development potential for expanded electronic commerce in traditionally underserved communities. It will provide a stepping-stone for families receiving government assistance to become familiar with financial services as they move toward self-sufficiency.
An EBT Fact Sheet is attached providing additional information about the new program. More information can also be found at www.ebtproject.ca.gov. In addition, the federal government also maintains a similar program for the distribution of federal benefits. Interested parties should call 888-382-3311. On the Web, go to http://www.eta-find.gov or http://www.fms.treas.gov/eta/index.html
California Escheat Amnesty Reminder
The escheat amnesty period in California ends on December 31, 2001. Code of Civil Procedure Section 1577.5 provides that companies can avoid the 12% interest obligation for failing to escheat property that was required to be reported on or before November 1, 1999 by reporting and paying the property to the Controller on or before December 31, 2001. Institutions should conduct an audit of their current and past practices to ensure that they are in compliance with the law (e.g., with respect to outstanding vendor checks, shareholder distributions, uncashed employee checks, deposits, securities, safe deposit box contents, refunds and the like).
Monthly Activity Report
Commercial Bank Activity
Napa Community Bank
Proposed Location: Northwest corner of Trancas and Big Ranch Road, Napa, Napa County
Correspondent: Cristin Reid English
Executive Vice President
First California Northern Bancorp
200 Washington Square North
Lansing, MI 48933
Phone: (602) 955-6100 or (517) 487-6555
Conversion to State Charter
San Luis Trust Bank, FSB, San Luis Obispo, to convert to a state-chartered bank under the name San Luis Trust Bank
American Commercial Bank, Ventura with and into Mid-State Bank & Trust, Arroyo Grande
BYL Bank Group, Orange, with and into First Bank & Trust, San Francisco
Capitol Thrift & Loan, Napa, with and into Capitol Valley Bank, Roseville
Charter Pacific Bank, Agoura Hills, with and into First Bank & Trust, San Francisco
Imperial Bank, Inglewood, with and into Comerica Bank-California, San Jose
Valley Oaks National Bank, Solvang with and into Montecito Bank & Trust, Montecito
Acquisition of Branch Office
Bank of Granada Hills, Granada Hills to acquire the Burbank office of First Coastal Bank, N.A., El Segundo
Vineyard Bank, Rancho Cucamonga to acquire the LaVerne Office of Pacific Business Bank, Santa Fe Springs
Industrial Bank Activity
Sale of Partial Business Unit
Fremont Investment and Loan, Anaheim, California, to sell the Modesto Branch, located at 3400 Tully Road, Modesto, to Guaranty Federal Bank F.S.B, Dallas, Texas
Foreign Bank Activity
Foreign (Other Nation) Bank – To Establish Offices
Development Bank of Singapore, Ltd.
445 South Figueroa Street, Los Angeles
(in connection with the transformation of the Depositary Agency to a Wholesale Branch)
Foreign (Other State Bank) – Discontinuance of Facility Office
Merrill Lynch Trust Company
101 California Street, Suite 310, San Francisco, San Francisco County
Neuberger Berman Trust Company
1999 Avenue of the Stars, Suite 2050, Los Angeles, Los Angeles County
Credit Union Activity
Conversion to State Charter
Matadors Federal Credit Union, Northridge as Matadors Community Credit Union
Silverado Federal Credit Union, Angwin
Transmitters of Money Abroad Activity
Dollars Express International, Inc.
13916 Brookhurst Street
Garden Grove, CA 92843
Contact person: Jeannie Vo
DONALD R. MEYER
Commissioner of Financial Institutions
Bulletin for month ended
October, 2001, issued pursuant
to Financial Code, Section 258
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