pc
nid 91319
Mar 16, 2026
alapetina@vixio.com
Georgia (US)
Georgia Department of Banking and Finance
financial services
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2198 charsGeorgia Department of Banking and Finance Issues Guidance on Charter Conversion Procedures for State-Chartered Financial Institutions
On March 16, 2026, Melissa Sneed, Senior Deputy Commissioner of the Georgia Department of Banking and Finance (DBF), issued guidance (DBF SUP 26-003) addressing charter conversion procedures and common state laws applicable to financial institutions converting to Georgia state charters.
The guidance outlines the conversion process for national banks, federal credit unions, other state-chartered institutions, and federal thrifts seeking to convert to a Georgia state charter. The DBF will conduct pre-application meetings with applicant institutions' senior management and board members. The Department may discourage conversions if the applicant has serious safety and soundness concerns or is subject to administrative action by federal regulators including the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation, Federal Reserve Bank, or National Credit Union Administration.
Following application acceptance, examination staff conduct risk-focused investigations coordinated with relevant federal regulators. The investigation scope includes review of the most recent regulatory examination reports, audit reports, and proposed business plans. The Examiner-In-Charge prepares a Report of Investigation with recommendations for approval (subject to conditions) or disapproval, transmitted through the Supervisory Manager to senior management for final review.
The guidance provides comprehensive detail on Georgia-specific requirements for state-chartered banks and credit unions, including lending limits based on Statutory Capital Base (banks) or net worth (credit unions), fixed asset investment limitations, director oath and meeting requirements, dividend restrictions, annual audit obligations, and dormant account provisions. Key differences from federal requirements include Georgia's prohibition on payday loans, specific collateral requirements, and distinct lending limit calculations.
The Department references Official Code of Georgia Annotated (O.C.G.A.) sections 7-1-550 through 7-1-555 for banks and 7-1-668 for credit unions, along with applicable Department Rules. Forms and applications are available on the DBF website at dbf.georgia.gov.
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2838 charsGeorgia Department of Banking and Finance Issues Guidance for Financial Institution Charter Conversions
On March 16, 2026, Georgia Department of Banking and Finance (DBF), issued guidance (DBF SUP 26-003) addressing charter conversion procedures and common state laws applicable to financial institutions converting to Georgia state charters. The guidance outlines the conversion process, providing details on the investigation process which begins after an application has been accepted by the DBF. Prior to the investigation, a request for information will be sent to the institution, which should align to appropriate risk-scoping activities. The scope of the investigation will include a review of the most recent regulatory report of examination obtained from the current federal regulator, external and internal audit reports, and a proposed business plan. The guidance also provides comprehensive detail on Georgia-specific requirements for state-chartered banks, including:
Lending limits based on Statutory Capital Base (SCB) : In general, state banks are limited to aggregate loans to one person or corporation of 15 percent of SCB for unsecured debt and 25 percent of SCB for loans that are secured by "good collateral or other ample security."
Fixed asset investment limitations : Rule 80-1-10-.01(2) limits the amount of investment in fixed assets by a bank to a maximum of 60 percent of SCB. To exceed this limit, prior approval is required by the DBF.
Director oath and meeting requirements: Each director, before assuming office, shall take an oath or affirmation to diligently and honestly perform duties in the administration of the affairs of the bank, not permit a willful violation of law by the bank, and meets the eligibility requirements of this chapter and of the articles and bylaws
Dividend restrictions: Banks may declare and the bank may pay cash dividends out of retained earnings on its outstanding stock without DBF notification or approval under specific conditions.
Annual audit obligations: The board must at least once each year have made by an independent certified public accountant an audit of the books and affairs of the bank.
Dormant account provisions: Rule 80-1-8-.01 authorizes the amount and length of time that service charges are permitted for certain dormant deposit accounts. Generally, the rule states that demand deposits are deemed to be dormant when the depositor has neither increased or decreased the amount of the deposit nor corresponded with the financial institution regarding the deposit for a period of not less than 12 months immediately preceding the determination, time deposits in similar circumstances of not less than five years, and official checks in similar circumstances of not less than two years.
The guidance also references statutes that address Georgia's prohibition on payday loans, specific collateral requirements, and distinct lending limit calculations.