DFI Monthly Bulletin – November 2008

Nov 1, 2008

Volume 12, Number 5

DFI San Francisco Office to Relocate December 8

On December 8, 2008 the Department of Financial Institutions (DFI) San Francisco Office will relocate
from 111 Pine Street, Suite 1100 to 45 Fremont Street, Suite 1700, San Francisco, CA 94105-2219.
Telephone numbers will remain the same, except for the fax numbers listed below:
UOld fax numberU UNew fax number
Credit Union 415-399-9515 415-263-8509
Executive 415-989-5310 415-288-8830
Information Technology 415-397-9021 Not applicable
Strategic Support 415-288-8836 415-288-8830
Transmitters of Money Abroad 415-397-4623 415-263-8508
Every effort is being made to ensure that this move is accomplished smoothly, however you may
experience longer than average response times during this period. Thank you for your consideration.
DFI Approves Ford Group State Charter
On November 17, 2008, DFI received and approved the application to organize the Ford Group Bank (In
Organization). Under long-established expedited application procedures in place at DFI, the bank was
approved for the purpose of purchasing the assets and assuming the liabilities of failing financial
institutions from the Federal Deposit Insurance Corporation (FDIC) in its capacity as receiver of those
failed institutions. This same-day filing and approval demonstrates the responsiveness of the DFI to
help minimize the disruption to the financial system and facilitate the orderly resolution of troubled
If the Ford Group Bank (In Organization) is the successful bidder, it will be required to meet certain
conditions of approval both prior to and subsequently after opening for business. Further inquiries about
DFI’s expedited procedures should be addressed to Senior Deputy Commissioner & Chief Examiner
Craig Carlson at HUccarlson@dfi.ca.govUH or 619-682-7222.
2 Monthly Bulletin November 2008
Liquidation of Security Pacific Bank
On Friday, November 7, 2008, the Commissioner of Financial Institutions took possession of Security
Pacific Bank and ordered that it be liquidated. The Commissioner then appointed the Federal Deposit
Insurance Corporation (“FDIC”) as Liquidator, and the FDIC accepted the appointment. All deposit
accounts were transferred to Pacific Western Bank, Los Angeles. On Monday, November 10, 2008, the
former Security Pacific Bank locations reopened as branches of Pacific Western Bank.
Premium Finance Company Assessment
In accordance with Financial Code Sections 18350, 18351, and 18352, the Commissioner of Financial
Institutions assessed all California insurance premium finance companies in order to fund the operations
of the Department of Financial Institutions in administering the laws relating to insurance premium
finance companies. Invoices for the assessment will be mailed on December 1, 2008. The assessment
must be paid in full by December 21, 2008.
For the purposes of this assessment, the base rate is set at 0.0075 percent of each insurance premium
finance company’s total assets. The amount of the assessment on each insurance premium finance
company is calculated in accordance with Financial Code Sections 18350 and 18351. The minimum
amount for any institution is $250. For purposes of calculating the assessment, the total assets of each
insurance premium finance company have been determined as of December 31, 2007.
Examination Procedures Adopted for Identity Theft
The Department of Financial Institutions (DFI) expects all depository licensees to familiarize
themselves with the identity theft “Red Flags Rule” (Rule) and to make necessary adjustments to their
systems and internal controls by the mandatory compliance date. On November 9, 2007, the federal
banking agencies and the Federal Trade Commission published final rules and guidelines in the Federal
Register (72 FR 63718) pursuant to the Fair and Accurate Credit Transactions Act of 2003 (FACT Act).
The Rule addresses the duties of depository institutions regarding the detection, prevention, and
mitigation of identity theft. The guidelines include a supplement that identifies 26 patterns, practices,
and specific forms of activity that are “red flags” signaling possible identity theft. The Rule took effect
on January 1, 2008, and except for state-chartered credit unions, compliance is required by November 1,
2008. The Federal Trade Commission, which is the designated enforcement agency for state-chartered
credit unions, announced on October 22, 2008 the suspension of enforcement of the new Rule until May
1, 2009.
The Federal Financial Institutions Examination Council (FFIEC) recently approved interagency
examination procedures to assist regulatory examiners in reviewing compliance with the Rule. FDIC
Financial Institution Letter FIL 105-2008 and NCUA Letter to Credit Unions 08-CU-24 provides the
FFIEC examination procedures to assist financial institutions in implementing the Rule. As part of the
risk-focused IT/E-Banking Examination Program, DFI examiners will review our depository institutions
for compliance with the Rule during selected examinations commencing after November 1, 2008
(banks) or May 1, 2009 (credit unions).
3 Monthly Bulletin November 2008
If you have any questions about the IT/E-Banking Examination Program for banking institutions, please
contact Deputy Commissioner Doug Kirkpatrick at (213) 897-2223 email: HUdkirkpatrick@dfi.ca.govUH; or
IT/E-Banking Program Manager Richard Schorr at (213) 897-2225; email HUrschorr@dfi.ca.govUH. For
State-chartered credit unions, please contact Chief Examiner T. Bert McLane at (213) 897-9351; email:
HUbmclane@dfi.ca.govUH, Program Manager Joni Kimbrell (Southern California) at (213) 897-2168; email:
HUjkimbrell@dfi.ca.govUH, or Program Manager Lana Tom (Northern California) at (415) 263-8557; email:
Commercial Bank Activity
UNew Bank
Banco BuenaVentura
143 West Fifth Street, Oxnard, Ventura County
(805) 822-5500
(805) 822-5501 (fax)
Officers: James F. Montgomery, Chairman of the Board and Chief Executive Officer
Enrique Rodriguez, Jr., President and Chief Credit Officer
Diana A. Sherwood, Executive Vice President and Chief Financial Officer
Capitalization: $10,014,292.00
Website: http://www.bancobuenaventura.com
Opened: 11/7/08
Banco del Tepeyac
2629 Clarendon Avenue, Huntington Park, Los Angeles County
Correspondent: Maryam Hamzeh
Carpenter & Company
5 Park Plaza, Suite 950
Irvine, CA 92614
(949) 261-8888
Withdrawn: 11/14/08
Ford Group Bank
3501 Jamboree Road, Newport Beach, Orange County
Correspondent: Charles E. Greef and Brian R. Marek
Hunton & Williams LLP
1455 Ross Avenue, Suite 3700
Dallas, TX 75202
(214) 468-3331 or (214) 468-3351
Filed: 11/17/08
Approved: 11/17/08
4 Monthly Bulletin November 2008
UNew Bank (Continued)
Royal Business Bank
660 South Figueroa Street, City and County of Los Angeles
(213) 627-9888
(213) 623-5888 (fax)
Officers: Alan Thian, President and Chief Executive Officer
Richard Voake, Executive Vice President and Chief Credit Officer
Peggy Anne Hansen, Executive Vice President and Chief Financial Officer
Capitalization: $70,989,250.00
Website: HUhttp://www.royalbusinessbankusa.comU
Opened: 11/18/08
Service 1st Bank, Stockton, to merge with and into Central Valley Community Bank, Fresno
Effected: 11/12/08
UAcquisition of Control
Murray Pasternack, to acquire control of Capital Bank
Approved: 11/10/08
Industrial Bank Activity
UConversion to State Charter
Silvergate Bank, La Jolla, to convert to state-chartered commercial bank
Expired: 7/2/08
Silvergate Bank, La Jolla, to convert to state-chartered commercial bank
Filed: 11/25/08
Approved: 11/25/08
Tamalpais Bank, San Rafael, to convert to state-chartered commercial bank
Filed: 11/12/08
Approved: 11/13/08
5 Monthly Bulletin November 2008
Premium Finance Company Activity
UNew Premium Finance Company
Red Rock Premium Finance Co., Inc.
8530 La Mesa Boulevard, La Mesa, San Diego County
Opened: 11/7/08
UAcquisition of Control
NSK Enterprises to acquire control of Fulcrum Capital Strategies, Inc.
Approved: 11/20/08
Credit Union Activity
UField of Membership
One credit union received approval to add one new field of membership during October 2008.
One credit union received approval for request for variance to sections of the California Code of
Regulations during October 2008.
UBylaw Amendment
Three credit unions received approval for four bylaw amendments during October 2008.
E1 Financial Credit Union, Monterey Park, to merge with and into NuVision Financial Federal Credit
Union, Huntington Beach
Filed: 11/13/08
Pacific Coast Credit Union, Costa Mesa, to merge with and into Financial Partners Credit Union,
Filed: 11/4/08
6 Monthly Bulletin November 2008
Transmitter of Money Abroad Activity
UVoluntary Surrender of License
G&T Continental Transferencias Mundiales, Inc.
Effected: 9/15/08
Commissioner of Financial Institutions
Bulletin for Month ended
November 2008, issued pursuant
to Financial Code section 258
The Monthly Bulletin is available without charge via e-mail. To subscribe, go to HUhttp://www.dfi.ca.gov/bulletin/subscription/public.aspUH. To
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