Monthly Bulletin – December 2001

State of California

Gray Davis, Governor

Business Transportation and Housing Agency
Maria Contreras-Sweet, Secretary

Department of Financial Institutions

California Seal

Monthly Bulletin

Volume 5, Number 6

December, 2001

Franklin Hom Selected as Financial Institution Manager

Franklin Hom was selected as Financial Institutions Manager for the San Francisco Office effective November 30, 2001. Mr. Hom joined the State Banking Department in 1979. He was most recently a Financial Institutions Supervisor in the San Francisco Office. Franklin Hom graduated from San Francisco State University, and is also a graduate of the Pacific Coast Banking School.

Michael J. Curran Selected as Financial Institution Manager

Michael J. Curran was selected as Financial Institutions Manager of the San Diego Office effective November 30, 2001. Mr. Curran joined the State Banking Department in 1987 after graduating from the University of San Diego. He has been the Financial Institutions Supervisor in the San Diego office since 1999.

Important Notice–Sacramento Office Relocation

Effective Tuesday, January 22, 2002 the Sacramento Regional Office will relocate to 1810—13th Street, Sacramento, CA 95811. All phone numbers will remain the same.

DFI Publishes Chart in Response to Chapter 711, Statutes of 2001 (AB 865)

During the 2001 legislative session, the California Legislature enacted Chapter 711, Statutes of 2001 (AB 865) that amended the Civil Code to add §1748.13. This new law required the Department of Financial Institutions (the “Department”) to establish a detailed table illustrating the approximate number of months that it would take, and the approximate total cost, to repay an outstanding balance on a credit card if a cardholder pays only the required minimum monthly payments. This chart was to be developed and available to credit providers January 1, 2002. In developing the chart, the law required that the Department assume the following:

(i) A significant number of different annual percentage rates.

(ii) A significant number of different account balances, with the difference between sequential examples of balances being no greater than one hundred dollars ($100).

(iii) A significant number of different minimum payment amounts.

(iv) That only minimum monthly payments are made and no additional charges or fees are incurred on the account, such as additional extensions of credit, voluntary credit insurance, late fees, or dishonored check fees.

Each page of the chart represents a different account balance amount beginning with $100 and increasing in $100 increments to $10,000. Each page of the chart also includes a list of interest rates beginning at six percent and increasing by one percentage point to a maximum of 25%, and minimum payment due (“MPD”) of either two, three, four, five or ten percent of the balance of the original outstanding balance. For example, a cardholder who has a credit card with an interest rate of 17% and is paying a minimum payment due (MPD) of five percent of their $5000.00 credit card balance will have the entire balance paid off in 112 months (nine years, three months) at a total cost of $6,934.49. However, a cardholder who has a credit card with the same interest rate and is paying a MPD of ten percent of the $5000.00 balance will have the entire balance paid off in 55 months (four years, five months) at a total cost of $5,817.33.

While the chart was designed as a tool for the credit issuers, the Department has made the chart available to all interested parties on our Internet site so that cardholders can directly see the impact of only making the minimum payment to the creditor. The chart is available at our Internet site, under the heading Minimum Payment Credit Card Calculation – as required by AB 865 (Civil Code Section 1748.13) or it may be accessed directly at the Department of Business Oversight . Cardholders having questions regarding the chart and how to interpret the chart should contact their credit card provider as it is the provider’s obligation to provide this information. Please be aware the Department was obligated to create this chart by January 1, 2002 but the other provisions of Chapter 711, including the credit issuer’s obligation to provide this information to cardholders do not take effect until July 1, 2002.

Legal Precedent Research System Now Online

Just before the New Year, the Department unveiled its public Legal Precedent Research System on its Internet web site: the Department of Business Oversight . A few years ago, a Department task force of lawyers and examiners selected these letters as precedents that the Department would be likely to continue to abide by. We have now made these letters electronically available so that financial institutions, their counsel and the general public can easily discover what rulings the Department, or its predecessor, the State Banking Department, has issued by performing a literal search of this database. We recognize that publication of these letters may raise further questions, and we welcome those inquiries. Although this Internet legal precedent system contains letters selected because they are generally reliable as precedent, please be advised that these letters represent the position of the Department in the context of the specific facts presented in each case. A change in the law or facts may yield a different interpretation and result. Changes in policy may also effect the result. Therefore, the Department must reserve the right to qualify, withdraw or retract any of these letters. If you have any doubt as to a particular letter’s precedential effect, please call or e-mail us.

We also realize that many other precedents exist in the files of financial institutions and law firms that may no longer be in our files. We invite you to send us those old precedents. If we can authenticate them and they are still good precedents, we will add them to this file for everyone’s benefit.

Fiduciary Statement Changes for Bank Trust Departments and Independent Trust Companies

Starting December 31, 2001, the Department of Financial Institutions (DFI) has replaced Form 503 – Trust Called Report of Condition (Fiduciary Statement) with Form 505 – Schedule T – Fiduciary and Related Services. This action was necessitated because the Federal Financial Institutions Examination Council (FFIEC) recently added a fiduciary statement for commercial banks with trust departments and with trust company subsidiaries to the FFIEC Call Report called Schedule RC-T – Fiduciary and Related Services.

The new Form 505 – Schedule T – Fiduciary and Related Services will be required from each financial institution that has trust powers and each independent trust company, regardless of the amount of fiduciary assets held. To the greatest extent possible, Form 505 – Schedule T – Fiduciary and Related Services and related instructions are a reflection of the FFIEC Schedule RC-T – Fiduciary and Related Services and related instructions. The principal difference relates to the frequency of the reporting. Form 505 – Schedule T – Fiduciary and Related Services contains a confidential section that will not be made available to the public on an individual institution basis.

Independent trust companies will also be required to submit a corporate Form 502 — Trust Company Consolidated Report of Condition and Form 8040-22 Trust Company Report of Income on a quarterly basis. This is an increase in the frequency of submission of the Report of Income, from semi-annually to quarterly.

For further information, please contact Charlotte Imoto, Assistant Deputy, at (213) 897-2224 or, or Sharon Dunlavey, Assistant to the Chief Examiner, at (858) 642-4240 or

Monthly Activity Report

Commercial Bank Activity


New Bank


Uniti Bank
6301 Beach Boulevard, Suite 100, Buena Park, Orange County 90621
Officers: William B. Im, President and Chief Executive Officer
Joseph N. Rabbat, Executive Vice President/Chief Financial Officer
David D. Choi, Executive Vice President/Chief Credit Officer
Phone: (714) 736-5700
Capitalization: $6,380,487.08
Opened: 12/17/01




Amalgamated Trust Company, Pasadena, with and into Amalgamated Bank, New York
Effected: 12/26/01

Frontier State Bank, Redondo Beach, with and into First Federal Bank of California, Santa Monica
Effected: 11/30/01

Metro Commerce Bank, San Rafael, with and into Business Bank of California, San Bernardino
Effected: 12/31/01


Acquisition of Branch Office


Pacific State Bank, Stockton, to acquire the Stockton Branch of California Bank & Trust, San Diego
Filed: 12/14/01

Vineyard Bank, Rancho Cucamonga to acquire the LaVerne Office of Pacific Business Bank, Santa Fe Springs
Effected: 12/8/01


Transformation of Trust Company to Commercial Bank with Trust Powers


Amalgamated Trust Company
150 South Los Robles Ave, Suite 950, Pasadena, Los Angeles County
Filed: 11/13/01
Approved: 12/10/01
Effected: 12/26/01

Industrial Loan Company Activity


New Industrial Loan Companies


Allegiance Premium Finance Company, Inc.
936 Mangrove Plaza, Chico, Butte County
Approved: 12/19/01

Newport Premium Finance, Inc.
2501 E. Chapman Avenue, Suite 100, Fullerton, Orange County
Approved: 12/19/01

Foreign (Other State) Bank Activity


New Facility


First International Bank, Hartford, Connecticut
dba First International Capital (Facility – Uninsured Bank)
350 South Grand Avenue, Suite 2250, Los Angeles, Los Angeles County
Correspondent: Lou Malesci
350 South Grand Avenue, Suite 2250
Los Angeles, CA 90071
Phone: (213) 621-9103
Filed: 12/6/01
Approved: 12/6/01
Opened: 12/6/01

Credit Union Activity


Conversions to State Charter


Building Trades Federal Credit Union, Orange
Filed: 12/6/01

Lockheed Federal Credit Union, Burbank
Filed: 12/28/01

Silverado Federal Credit Union, Angwin, as Silverado Credit Union
Effected: 12/13/01

Water & Power Federal Credit Union, Los Angeles, as Water and Power Community Credit Union
Effected: 12/18/01




Harbor Japanese Credit Union, Long Beach, into Nikkei Credit Union, Gardena
Withdrawn: 12/10/01

Harbor Japanese Credit Union, Long Beach, into L.A. Southwest Japanese Credit Union, Los Angeles
Filed: 12/24/01

Ventura Texaco Employees Federal Credit Union, Ventura, into Star Energy Credit Union, Bakersfield
Filed: 11/30/01

Transmitters of Money Abroad Activity


New Transmitters


El Camino Transferencias, Inc.
225 Broadway Avenue, Suite 1425
San Diego, CA 92101
(619) 243-2206
Contact person: Jorge Ortiz de Montellano
Opened: 12/13/01

Peso Express International Remittance, Inc.
Expired: 6/19/01

Sigue Corporation
Filed: 7/18/01
Approved: 11/28/01

Worldcash Technologies, Inc.
Expired: 5/31/0


Commissioner of Financial Institutions

Bulletin for month ended
December, 2001, issued pursuant
to Financial Code, Section 258

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