Volume 6, Number 8

Closing of Southern Pacific Bank

On Friday, February 7, 2003, the Commissioner of Financial Institutions took possession of Southern
Pacific Bank, Torrance and ordered that it be liquidated. The Commissioner then tendered to the Federal
Deposit Insurance Corporation the appointment as receiver of the Bank, and the FDIC accepted the
appointment.
The FDIC entered into a purchase and assumption agreement with Beal Bank, S.S.B. a Texas state
savings bank, under the terms of which all of the insured deposits of Southern Pacific Bank were
assumed and certain assets purchased.
As a result of the purchase and assumption transaction, depositors of Southern Pacific Bank became
depositors of Beal Bank, S.S.B. Beal Bank will operate branches at the locations of the former branches
of Southern Pacific Bank.
Recognize and Report Suspected Financial
Abuse of Elders
Training Video for Financial Institutions now Available
In the January 2002 issue of the Monthly Bulletin, the Department of Financial Institutions (DFI)
announced its support for the efforts of the California Community Partnership for the Prevention of
Financial Abuse (CCPPFA) to prevent financial abuse of the elderly with a videotape-based training
program to help educate financial institution personnel about detecting and reporting financial abuse of
the elderly; and to undertake a consumer awareness outreach campaign titled “Be Wise” to educate
senior citizens about protecting themselves against financial abuse.
2 Monthly Bulletin February, 2003
DFI, together with the Federal Deposit Insurance Corporation (FDIC) and the Office of Thrift
Supervision (OTS) jointly supported CCPPFA’s initiative and leadership in helping to prevent financial
abuse of the elderly and confirmed Community Reinvestment Act (CRA) qualification for financial
institutions that contribute to the program.
Be Wise: Preventing Elder Financial Abuse, a training video produced by the California Community
Partnership for the Prevention of Financial Abuse (CCPPFA) is now available. The 24-minute video is
designed to train financial institution employees how to recognize and report suspected financial abuse
of elders. It features an introduction by California State Attorney General Bill Lockyer and includes a
reference booklet to provide employees of financial institutions with the latest comprehensive
information on warning signs of financial abuse and tips on how to effectively respond.
Be Wise: Preventing Elder Financial Abuse recently received The Crystal Award of Excellence from
The Communicators Award, a consortium of communication professionals.
CCPPFA is a non-profit organization committed to the development of a statewide collaborative effort
between private and public sectors to prevent elder financial abuse through education and community
awareness.
For more information on CCPPFA and the Be Wise: Preventing Elder Financial Abuse training video,
visit their Web site at http://www.bewiseonline.org/index.shtml. A training video order form is available
at http://www.bewiseonline.org/pdf_files/video_form.pdf or you can call CCPPFA at 415-897-9555.
Credit Union Advisory Committee
The DFI would like to extend its sincere appreciation and thanks to all of the Advisory Committee
members who have volunteered their time and resources to serve on the committee for the 2001 to 2003
term. Each of the committee members has made a real commitment to this service and their
participation has been invaluable. With the current term coming to a close, it is time to appoint
committee members for the term 2003 to 2005.
The Credit Union Advisory Committee consists of seven members who meet at least once each calendar
quarter to advise the Commissioner and the Deputy Commissioner on matters relating to credit unions or
the credit union business. Advisory Committee members serve two year terms as provided in section
14382 of the California Financial Code unless a member receives a reappointment to continue for an
additional term(s). Committee members volunteer their time and bear all costs for service, typically the
costs associated with traveling to and from meetings, as the Financial Code prohibits DFI from
providing compensation, reimbursement, or other payments in connection with Advisory Committee
Service.
Members of the Advisory Committee are appointed by the Secretary of Business, Transportation and
Housing. Secretary Contreras-Sweet has requested that the Commissioner provide the names of persons
interested in serving on the committee.
3 Monthly Bulletin February, 2003
If you are interested in serving on the Advisory Committee for the 2003-2005 term, please prepare and
submit a cover letter expressing your interest and a statement that summarizes your qualifications for
service. Please include in the correspondence your background, areas of expertise, details and
challenges you face in your own credit union such as size, region, field of membership, whether your
credit union has private or federal insurance, and of most importance what you believe you can
contribute to the Advisory Committee.
Please submit your request by March 14, 2003 to Commissioner Donald R. Meyer at the following
address:
Donald R. Meyer, Commissioner
Department of Financial Institutions
Credit Union Division
111 Pine Street, Suite 1100
San Francisco, California 94111-5613
Credit Union Regulations
The proposed amendments to the credit union regulations have been approved by the Office of
Administrative Law. The anticipated effective date for the new regulations is March 31, 2003. Please see
the Department’s Web site for the text of the regulations.
New—Schedule U – Report on Fiduciary
Activities in California and Related Security
Deposited with the State Treasurer of California
(For use by national banks, federal savings banks, and foreign (other state) banks
authorized to engage in trust business in California)
The Commissioner of Financial Institutions (“Commissioner”) has determined that a change in the
reporting of information to the Commissioner on the fiduciary activities conducted in California by
national banks, federal savings banks, and offices of foreign (other state) banks is appropriate. This
change will significantly reduce the amount of information required, while continuing to provide needed
information on the trust business in California for which money or securities are on deposit with the
State Treasurer of California.
Beginning with the quarter ending March 31, 2003, national banks, federal savings banks, and foreign
(other state) banks authorized to conduct trust business in California will no longer be required to file a
California Schedule T – Fiduciary and Related Services with the Commissioner. Also beginning with
the quarter ending March 31, 2003, national banks, federal savings banks, and foreign (other state) banks
authorized to conduct trust business in California, will be required to file Form 506, Schedule U – Report
on Fiduciary Activities in California and Related Security Deposited With the State Treasurer of
California (“Report”). This two-page Report will be requested by the Commissioner at the end of each
calendar quarter. It will be necessary for national banks, federal savings bank, and foreign (other state)
4 Monthly Bulletin February, 2003
banks to provide this Report if the institution is authorized to conduct trust business in California for
which money or securities are on deposit with the State Treasurer of California. Schedule U can be
found on the DFI Web page at http://www.dfi.ca.gov/forms.
If you have any comments or questions, please contact Charlotte Imoto, Assistant Deputy, at (213) 897-
2224, or by e-mail at cimoto@dfi.ca.gov, or Sharon Dunlavey, Special Assistant to the Chief Examiner,
at (858) 642-4240, or by e-mail at sdunlavey@dfi.ca.gov.
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 (e.g., at:
http://www.chinfo.navy.mil/navpalib/questions/ssrelief/usc50top.html
Commercial Bank Activity
New Banks
County Commerce Bank
3260 Telegraph Road, Ventura, Ventura County
Phone: (805) 477-7600
Officers: Joseph D. Kreutz, President and Chief Executive Officer
David Brubaker, Senior Vice President and Chief Financial Officer
Richard Favor, Senior Vice President and Senior Credit Officer
Capitalization: $7,708,330.42
Opened: 2/18/03
Golden State Business Bank
Proposed Location: In the vicinity of 1060 West Foothill Boulevard, Upland, San Bernardino County
Correspondent: Peggy Hansen
517 North Mountain Avenue, Suite 106
Upland, CA 91786
Phone: (909) 912-0106
Filed: 2/6/03
Security First Bank
At or in the vicinity of Blackstone Avenue and Shaw Avenue, Fresno, Fresno County
Withdrawn: 10/5/02
5 Monthly Bulletin February, 2003
Conversions to State Charter
Nara Bank, National Association, Los Angeles, to convert to a state-chartered bank under the name Nara
Bank
Withdrawn: 2/26/03
Tracy Federal Bank, F.S.B., Tracy, to convert to a state-chartered bank under the name Community
Banks of Tracy
Approved: 2/13/03
Effected: 2/28/03
Acquisitions of Control
Community Bankshares, Inc. to acquire control of Community Banks of Tracy, Tracy
Filed: 10/4/02
Approved: 2/28/03
Five Star Bancorp, to acquire control of Five Star Bank, Rocklin
Approved: 2/3/03
Malaga Financial Corporation, to acquire Malaga Bank, S. S. B., Palos Verdes Estates
Filed: 12/23/02
Southwest Community Bancorp, to acquire control of Southwest Community Bank, Encinitas
Filed: 12/27/02
Wakashio Bank, Ltd., to indirectly acquire control of Manufacturers Bank, Los Angeles
Filed: 2/11/03
Change of Name
Discovery Valley Bank, to DISCOVERY BANK
Effected: 1/7/03
Trust Company Activity
Cease and Desist Order
Arrowhead Trust, Inc., San Bernardino
Issued: 2/10/03
6 Monthly Bulletin February, 2003
Premium Finance Company Activity
New Premium Finance Company
BCIC Premium Finance Company
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Approved: 2/14/03
Blackhorse Premium Finance Corp
2501 East Chapman Avenue, Suite 100, Fullerton, Orange County
Opened: 2/10/03
Golden State Finance Corp.
2501 E. Chapman Avenue, Suite 100, Fullerton, Orange County
Approved: 2/14/03
Great American Premium Finance Corp.
6046 Cornerstone Court West, Suite 202, San Diego, San Diego County
Approved: 2/14/03
Millennium Financing of California, Inc.
22349 La Palma Avenue, Suite D-110, Yorba Linda, Orange County
Approved: 2/14/03
Foreign (Other Nation) Bank Activity
Wakashio Bank, Ltd.
555 California Street, Suite 3350, San Francisco, San Francisco County
777 South Figueroa Street, Los Angeles, Los Angeles County (Wholesale Branches)
Filed: 2/5/03
Discontinuance of Office
The Asahi Bank, Ltd.
350 South Grand Avenue, Los Angeles, Los Angeles County (Representative Office)
Discontinued: 2/14/03
Banca Intesa S.p.A.
444 South Flower Street, Los Angeles, Los Angeles County (Nondepositary Agency)
Filed: 2/10/03
Change of Name
IntesaBci S.p.A., to Banca Intesa S.p.A.
Effected: 1/1/03
7 Monthly Bulletin February, 2003
Foreign (Other State) Bank Activity
New Facility
BankWest of Nevada (Facility – Insured Bank)
402 West Broadway, San Diego, San Diego County
Notified: 2/14/03
Nevada Security Bank (Facility – Insured Bank)
2893 Sunrise Gold Circle, Suite 209, Rancho Cordova
Notified: 2/18/03
Credit Union Activity
Merger
Providence First Credit Union, Burbank, into Priority One Credit Union, South Pasadena
Approved: 2/21/03
Sharp Federal Credit Union, San Diego, into Cabrillo Credit Union, San Diego
Effected: 2/21/03
Change of Name
EBTEL Credit Union, to STERLENT CREDIT UNION
Filed: 1/28/03
Approved: 1/31/03
Effected: 2/20/03
Triple S Credit Union to change its name to CALIFORNIA COMMUNITY CREDIT UNION
Filed: 9/30/02
Approved: 10/9/02
Effected: 11/19/02
Field of Membership
Fourteen credit unions received approvals to add 58 new fields of membership during January 2003.
Bylaw Amendments
Eight credit unions received approvals for 11 bylaw amendments during January 2003.
Variances
One credit union received an approval for a request for variance to sections of the California Code of
Regulations during January 2003.
8 Monthly Bulletin February, 2003
Transmitter of Money Abroad Activity
New Transmitter
Bancomericio de El Salvador, Inc.
Filed: 2/27/03
Change of Name
Thomas Cook Inc., to Travelex Inc.
Effected: 8/27/02
Issuer of Travelers Check Activity
Change of Name
Thomas Cook Inc., to Travelex Inc.
Effected: 8/27/02
CAROL D. CHESBROUGH
Chief Deputy Commissioner
Bulletin for Month ended
February 2003, issued pursuant
to Financial Code, Section 258
The Monthly Bulletin is available without charge via email as a PDF attachment. To subscribe, please send e-mail with
your name, e-mail address, company name and phone number to bulletin@dfi.ca.gov .