DFI Monthly Bulletin – May 2012

Monthly Bulletin

Volume 15, Issue 11 – May 2012

Commissioner Barnes Gives Keynote at EFPN Event

Commissioner Teveia R. Barnes delivered the afternoon keynote address at the Elder Financial Protection Network (EFPN) “Call to Action” at the Holiday Inn Golden Gateway in San Francisco on May 24, 2012.

In her remarks, Commissioner Barnes acknowledged that financial institutions in California are “the first and sometimes the only line of defense” against those who prey on the elderly, and emphasized the importance of mandatory reporting to protect vulnerable or at risk customers.

A link to the full text of Commissioner Barnes’ remarks can be found here.

California Alternative Energy and Advanced Transportation Financing Authority

Loan Loss Reserve for the Clean Energy Upgrade Financing Program

The California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA), a financing entity within the State Treasurer’s Office, is pleased to launch a Loan Loss Reserve Program (Program), the first phase of the Clean Energy Upgrade Financing Program (ABX1 14). The Loan Loss Reserve Program has up to $25 million in credit enhancements to support secured and unsecured loans made by financial institutions for energy efficiency improvements and distributed generation renewable energy projects for residential properties.

The goals of the Program are to increase access to retrofit financing by reducing its cost, promote the creation of green jobs and reduce energy consumption and greenhouse gases, air and water pollution.

CAEATFA will provide an initial 15 percent loan loss reserve contribution for each qualified loan enrolled in the Program and then scale back to 10 percent for each additional loan once a participating financial institution’s enrolled loan volume reaches $250,000.

Participating financial institutions could claim 100 percent of the charged-off loan up to the enrolled principal amount.

CAEATFA defines “Financial Institution” eligible to participate as any insured depository institution, insured credit union, or community development financial institution, as defined in Section 103 of 12 U.S.C. 4702.  Applications from financial institutions interested in participating in the Program are being accepted on an ongoing basis.

To learn more about the Program and to enroll as a Financial Institution, contact Martha Alvarez via email at Martha.Alvarez@treasurer.ca.gov  or phone at (916) 651-5105.

For additional information, please see the attached factsheet or visit the website, which has application materials and a list of Frequently Asked Questions.

State Controller Proposes Changes to Unclaimed Property Regulations

The State Controller proposes to amend California Code of Regulations, title 2, sections 1155.250 and 1155.350 by updating forms incorporated by reference, and by removing language for which statutory authority has been repealed.  These amendments are intended to improve the efficiency in processing, and accuracy in reporting annual reports of unclaimed property.  In addition, the amendments to Section 1155.250 are necessary to maintain consistency with the State Controller’s statutory authority.  These amendments are not inconsistent or incompatible with existing state regulations.

As currently adopted, California Code of Regulations, title 2, section 1155.250 incorporates two forms by reference: SCO EFT-1 (03/98) and SCO EFT-3 (01/98).  This rulemaking action will amend Section 1155.250 by updating the two forms incorporated by reference to SCO EFT-1(01/11) and SCO EFT-3(01/11).  The revised forms accommodate changes in statutory requirements, administrative needs, and technological changes.  The proposed amendment to Section 1155.250 will also delete the language requiring prior approval to remit funds by Fedwire.

As currently adopted, California Code of Regulations, title 2, section 1155.350 incorporates two forms by reference: UFS-1(02/98) and Form UP 27 (2/98).  This rulemaking action will replace UFS-1 (02/98) with UFS-1 (05/12), and it will delete the reference to Form UP 27 (02/98).

Copies of the Notice of Proposed Action, the Initial Statement of Reasons, and the text of the regulations in underline and strikeout can be accessed through the State Controller’s Office website at: http://www.sco.ca.gov/upd_rptg_notice.html

Any interested person, or his or her authorized representative, may submit written comments relevant to the proposed regulatory action to the State Controller’s Office.  Comments may also be submitted by facsimile at (916) 322-1220 or by email to dbrownfield@sco.ca.gov.  The written comment period closes at 5:00 p.m. on July 23, 2012.  The State Controller will only consider comments received at the State Controller’s Office by that time.

Submit comments to:

Dave Brownfield
State Controller’s Office
300 Capitol Mall, Suite 1850
Sacramento, CA 95814

The backup contact person for these inquires is:

Rick Chivaro, Chief Counsel
State Controller’s Office
300 Capitol Mall, Suite 1850
Sacramento, CA 95814
Telephone: (916) 445-2636
Email: rchivaro@sco.ca.gov

Annual Fee Reminder

Invoices for Fiscal Year 2012-13 due July 1, 2012

The following institution types are reminded that annual fees are due in this office on or before July 1, 2012.

DFI will calculate annual fees from its database and mail invoices based on that calculation to fee payers.

Representative offices of foreign (other nation) banks

The annual representative license fee for fiscal year 2012-13 is due on or before July 1, 2012. The fee, as outlined in Section 1755(i) of the California Financial Code, is $250.00 for each California representative office of a foreign (other nation) bank doing business as of June 1, 2012.

Invoices are mailed June 1 and must be paid on or before July 1. Fee payers that do not concur with the calculated amounts have until Friday, June 15 to request recalculation or adjustment of the amount. DFI will not entertain any requests received after that date. Those foreign (other nation) banks which also maintain agency or branch offices in California are not subject to this fee. For questions about fees, call (415) 263-8559 or e-mail Patrick Carroll at pcarroll@dfi.ca.gov

Business and Industrial Development Corporation (BIDCO)

The annual license fee for fiscal year 2012-13 is due on or before July 1, 2012. The fee, as outlined in Section 31115(a)(6), is $2,000.00 for each BIDCO doing business as of June 1, 2012. Invoices were mailed June 1 and must be paid on or before July 1. For questions about fees, call (415) 263-8559 or email Patrick Carroll at pcarroll@dfi.ca.gov.

Liquidation of Telesis Community Credit Union

On May 31, 2012, the Commissioner of Financial Institutions ordered the liquidation of Telesis Community Credit Union (Telesis).  Telesis had been in conservatorship since March 23, 2012, and the National Credit Union Administration (NCUA) had been acting as conservator of Telesis.

The Commissioner appointed the NCUA as liquidating agent of Telesis, and the NCUA accepted the appointment.  The NCUA has arranged the transfer of Telesis member share accounts to Premier America Credit Union.

Commercial Bank Activity

Conversion to State Charter

First Foundation Bank, Irvine, to convert to state-chartered commercial bank under the same name
Approved: 5/1/12

Acquisition of Control

CU Bancorp, to acquire control of California United Bank
Approved: 5/22/12


Premier Commercial Bank, N.A., Anaheim, to merge with and into California United Bank, Encino
Approved: 5/22/12

Premier Service Bank, Riverside, to merge with and into First California Bank, Westlake Village
Filed: 5/7/12

Professional Business Bank, Pasadena, to merge with and into Bank of Manhattan, N.A., El Segundo
Effected: 5/31/12

Premium Finance Company Activity

New Premium Finance Company

CPF Columbia Pacific Finance
5716 Corsa Avenue, Westlake Village, Thousand Oaks County
Filed: 5/9/12

Southern Star Premium Finance, Inc.
17601 S. Denver Avenue, Gardena, Los Angeles County
Filed: 5/30/12

Acquisition of Control

Fredrick B Roberson and Linda A Roberson, Trustees of the Roberson Family Trust, to acquire control of Snowcrest Funding, Inc.
Filed: 5/7/12

Credit Union Activity

Field of Membership

Two credit unions received approval to add two new field of membership during April 2012.


One credit union received approval for request for variance to sections of the California Code of Regulations during April 2012.


St. Agnes Hospital Federal Credit Union, Fresno, to merge with and into Educational Employees Credit Union, Fresno
Effected: 5/1/12

Money Transmitter Activity

New Money Transmitter

Keefe Commissary Network, LLC
Opened: 5/21/12

Voluntary Surrender of License

Maniflo Money Exchange, Inc.
Effected: 5/18/12

Commissioner of Financial Institutions

Bulletin for Month ended
May 2012, issued pursuant
to Financial Code section 376