Georgia
80-1-5-.01 Loans Generally, Interpretations and Rulings. Amended.
(1) "Indirect" loans as used in Code Section 7-1-285 shall mean loans made for the
substantial benefit of a third party where repayment of the loan is dependent on activities
of the third party rather than solely dependent on the resources of the borrower.
(2) Loans extended to any Industrial Development Authority domiciled in Georgia which
are dependent upon revenues obtained under an assigned lease contract naming the
Authority as lessor shall be considered as loans to the lessee in calculating legal loan
limitations.
(3) Loans by a bank to any wholly-owned subsidiary of the bank, which subsidiary is
located within an approved office of the bank and which has agreed to abide by all laws,
rules and regulations applicable to the bank shall be exempt from the twenty-five (25)
percent maximum lending limit of the bank. In addition, to the extent allowed by other
applicable law and with the prior written approval of the Department, this exemption
from the twenty-five (25) percent maximum lending limit may be extended to loans from
a bank to a wholly owned subsidiary of an affiliated bank.
(4) In determining amounts loaned, all amounts guaranteed or insured by any
instrumentality of the United States government shall be deducted to the extent of the
guaranty or insurance coverage. Im mediate and deferred participations on loans by an
instrumentality of the United States government shall also be excluded. Where the source
of repayment of a loan, i.e. lease payments, is guaranteed by an instrumentality of the
United States government and such guarantee is assignable and has been assigned to the
bank, such loan may be excluded to the extent of the guarantee.
(5) In determining whether or not a loan in excess of the fifteen (15) percent limitation is
secured by "good collateral and other ample security," the lack of a perfected lien,
inadequate insurance, required margins between collateral value and the amount of the
loan shall be prima facie evidence of inadequate security to the debt. Loans secured by
endorsement must be supported by a financial statement on the endorser, properly signed,
which is not more than eighteen months old, if the loan is to be considered secured, and
such statement must reflect adequate income to service the loan and unencumbered
equity sufficient to protect the loan.
(6) A borrower's deposit accounts in the lending bank will be regarded as collateral to a
loan when they are not subject to check or withdrawal, mature on or after the loan which
is secured, are under the sole control of the bank, and are properly assigned. Where,
according to the terms of the deposit contract, the deposit is eligible for withdrawal
before the secured loan matures, the bank must establish internal procedures to prevent
release of the security without the lending bank's prior consent. If proper procedures are
in place, such deposits will be considered as collateral. Where deposit balances are
properly taken as collateral to a loan, the loan may be reduced to the extent of the deposit
in determining the amounts loaned for either secured or unsecured legal lending
limitations, as applicable.
(7) Except as provided in this paragraph, extensions of credit in the form of insufficient
funds checks held beyond the permissible return date and overdrafts shall be considered
"extensions of credit" included in determining compliance with the legal limitation as it
applies to the maker of the check or owner of the overdraft. Such extensions of credit
shall also be subject to the requirements for prior written approval and ample collateral
where the total indebtedness of the borrower exceeds fifteen (15) percent of the statutory
capital base. Such extensions of credit will not be considered extensions of credit for
purposes of compliance with the above legal loan limitations and requirements, provided
that the extension is inadvertent, which requires that:
(a) The extension(s) do not exceed the aggregate amount of $1,000 at any one time; and
(b) The account is not overdrawn or the insufficient funds check held for more than five
(5) business days.
(8) Wherever approval of the Board of Directors or Loan Committee is required, such
approval must be specific, prior, written approval of each extension of credit, except that
advances made under a master note covering a specific purpose or project need not
receive specific approval where such approval was accorded the master note. Annual
approval of a line of credit may be used where interest rate, repayment terms, and
anticipated collateral are clearly identified and current credit information is on file.
Commodity, floor-plan and discount lines of credit which are anticipated to exceed
fifteen (15) percent of the statutory capital base may be approved annually to be deemed
appropriate by the Board of Directors without each transaction receiving specific prior
approval. When in excess of twenty-five (25) percent of the statutory capital base, the
line must be reviewed quarterly by the Board of Directors or Loan Committee.
(9) In determining the primary collateral basis upon which a loan is granted, that portion
of the collateral having the greatest market value shall be assumed to be the primary
collateral and the credit worthiness of the individual and of endorsers shall not be
considered in determining conformity with the law unless proper, current, financial
information is in file on the borrower or endorser.
(10) In determining amounts loaned to "any person, firm or corporation," amounts
acquired as a result of purchasing accounts receivable from a third party (factoring) shall
not be considered; provided, the aggregate debt of the obligor including factored
accounts shall not exceed thirty-five (35) percent of the bank's statutory capital base.
(11) Extensions of credit to political subdivisions of the State of Georgia authorized to
levy taxes or backed by the taxing authority of another political subdivision shall qualify
for exemption from the twenty-five (25) percent loan limitation under the provisions of
Code Section 7-1-285, subparagraph (c)(4)(B), only where such extension of credit
otherwise conforms with the provisions of Georgia Constitution, Article 9, Section 5.
(12) Where the "statutory capital base" as defined in Section 7-1- 4(35) is reduced by
operating losses, loan losses, or for other reasons, existing debt which was in conformity
with the legal limitations at the time it originated shall not be construed to be
nonconforming with new legal limitations resulting from the reduced statutory capital
base; provided, however, in the absence of agreements to the contrary and originating at
the time such debt originated regarding repayment programs for the debt in question, any
extension, renewal, rollover or the like of the existing debt shall be considered to be a
new loan and must conform to the new, lower lending limitations. Demand notes in
excess of resultant lower lending limitations or included in aggregate debts in excess of
such limitations must be called for maturity within six (6) months after it has been
determined that the new lending limits are applicable; provided, such notes may be
wholly or partially renewed on a demand basis or otherwise where the aggregate debt of
the borrower conforms to the new lending limits.
(13) The Department of Banking and Finance shall consider the liabilities of separate
persons, corporations and entities to be combined for lending limit purposes, when there
is no evidence of a separate source of repayment, there is an apparent lack of ability to
service the obligation from the operations of the separate person or corporation without
relying on a related source of repayment, or where the separate entities make common
use or are dependent upon funds of the group. "Related" shall mean connected by
corporate or business structure or by common use or dependence upon funds, facilities or
personnel.
Authority Ga. L. 1974, pp. 733, 790-797; Ga. L. 1983, Act No. 255, eff. March 16, 1983. History. Original
Rule entitled "Analysis" adopted. F. and eff. June 30, 1965. Repealed: New Rule of the same title adopted.
F. June 9, 1972; eff. June 29, 1972. Repealed: New Rule of the same title adopted. F. July 5, 1973; eff.
July 25, 1973. Repealed: New Rule entitled "Loans Generally, Interpretations and Rulings" adopted. F.
Aug. 28, 1975; eff. Sept. 17, 1975. Amended: F. Jan. 31, 1978; eff. Feb. 20, 1978. Amended: F. Aug. 22,
1980; eff. Sept. 11, 1980. Amended: F. July 13, 1981; eff. Aug. 2, 1981. Amended: F. Aug. 17, 1983; eff.
Sept. 6, 1983. Amended: F. June 28, 1984; eff. Aug. 1, 1984, as specified by the Agency. Amended: F.
Nov. 2, 1994; eff. Nov. 22, 1994. Amended: F. Sept. 26, 1995; eff. Oct. 16, 1995. Amended: F. Dec. 6,
1999; eff. Dec. 26, 1999. Amended: F. Dec. 18, 2000; eff. Jan. 7, 2001.

80-3-1-.02 Check Cashers.
(1) Every applicant for a license shall demonstrate to the Department that such applicant
has sufficient financial resources in the form of working capital and tangible net worth to
successfully engage in the business of cashing checks. Sufficiency of financial resources shall
be determined through financial analysis by the Department of proforma and historical
financial information on the applicant.
(2) As used in Article 4A of Title 7, O.C.G.A.:
(a) "Agent" and "employee" shall mean such persons as are regularly compensated by the
licensee, its officers, directors, agents or assigns, to perform services for the licensee where
such persons have access to the monetary resources of the licensee under the system of
internal routine and controls employed in the offices of the licensee;
(b) "Incidental to the retail sale of goods or services" for the purpose of O.C.G.A. Section
7-1-709, shall mean in connection with payment for the sale of goods or services, provided
such check cashing service is not advertised, announced or otherwise promoted as a service
separate and apart from the retail sale;
(c) "Person" shall include a natural person as well as a partnership, association and
corporation.
(3) Every licensee shall post in prominent view of each teller window or other customer
service station a copy of its license. Each public entrance to a licensed check cashing business
shall display a window decal or other signage stating, and all other advertising material
relative to the cashing of checks distributed within this state shall state, "LICENSED BY
THE GEORGIA DEPARTMENT OF BANKING AND FINANCE" in letters at least
one-quarter inch high.
(4) Exemptions.
(a) Persons charging a fee of no more than 2% of the face amount of the check, draft, or
money order or $2.00 per check, draft, or money order, whichever is greater, for the cashing
of a check incidental to the retail sale of goods or services and where the aggregate gross
income received by such person, partnership, association, or corporation as consideration for
the cashing of checks does not exceed $25,000 per annum for each business location, shall be
exempt from obtaining a license to cash checks. Notwithstanding such exemption, such
persons shall be subject to the requirements and restrictions on the cashing of checks set
forth in Code Sections 7-1-704 and 7-1-705, O.C.G.A., record keeping requirements in
subsection 5(b) of this rule, and other requirements as noted herein.
(b) Persons charging a fee of no more than 2% of the face amount of the check, draft, or
money order or $2.00 per check, draft, or money order, whichever is greater, as consideration
for the cashing of a check not incidental to the retail sale of goods or services, may be
exempted from the requirement to obtain a license provided the aggregate of such fees
during the most recently completed fiscal year of the person does not exceed $12,000 and
further provided such check cashing service is not advertised, announced or otherwise
promoted as a service. Notwithstanding such exemption, such persons shall be subject to the
requirements and restrictions on the cashing of checks set forth in Code Sections 7-1-704 and
7-1-705, O.C.G.A., record keeping requirements in subsection 5(b) of this rule, and other
requirements as noted herein. Persons requesting exemption under the provisions of this
subsection (b) shall request such exemption on forms prescribed by the Department and
payment of the registration fee prescribed in Regulation 80-5-1-.02.
(5) Minimum Books and Records.
(a) Books and records required herein shall be maintained by every holder of a license, and
by exemptees as indicated in this rule. Information required in items 1 through 8 of
subsection (5)(b) of this Rule, shall be maintained by all licensees and exemptees cashing
checks for an amount of more than $1,000.
(b) A Daily Record of Checks Cashed shall be maintained as a record of all check cashing
transactions occurring each day. For all checks in excess of $1,000, such Daily Record shall
include:
1. The date of the transaction;
2. Date of the check, draft, or money order (hereafter referred to as "check");
3. Check number;
4. Name and location or routing number of the payor bank;
5. Name of the Drawer of the check;
6. Name, address, and identifying number (social security, drivers license, passport, etc.) of
the person negotiating the check;
7. Amount of the check; and
8. Amount of fee charged for cashing the check.
All other transactions not falling into the categories above may be listed by name of person
negotiating the check, amount of check and amount of fee charged. Required information
may be maintained through microfilm or other reviewable and reproducible facsimile of the
check.
(c) A Daily Cash Reconcilement shall be maintained summarizing each day's activity and
reconciling cash on hand at the opening of business to cash on hand at the close of business.
Such reconcilement shall separately reflect cash received from the sale of checks, redemption
of returned items, bank cash withdrawals, cash disbursed in cashing of checks, and bank
cash deposits.
(d) Records required under subsections (b) and (c) may be maintained in combined form,
hand or machine posted, or automated.
(e) A General Ledger containing records of all assets, liabilities, capital, income and
expenses shall be maintained. The General Ledger shall be posted from the Daily Record of
Checks Cashed or other record of original entry, at least quarterly, and shall be maintained
in such manner as to facilitate the preparation of an accurate trial balance of accounts in
accordance with generally accepted accounting practices. A consolidated General Ledger
reflecting activity at two or more locations under the same license may be maintained
provided books of original entry are separately maintained for each location.
(f) An original written authorization or other evidence of verification shall be maintained,
attesting to the fact that said corporation has authorized its officers and employees or
specific officers or employees to present checks, drawn by the corporation payable to cash or
drawn by any party payable to the corporation, to a licensee for cashing. A check casher
shall not cash a check payable to persons other than natural persons unless the payee has on
file such a written authorization or verification indicating that the payee has authorized the
presentation of such checks on behalf of the payee.
(g) For all entities cashing checks, each customer cashing a check shall be provided a
receipt showing the name of the licensee (or trade name of the licensee), the transaction
date, amount of the check, and the fee charged.
(6) Personnel: Licensees.
(a) Every licensee shall maintain personnel files for its employees.
(b) Each person in a supervisory position shall complete pages 3 and 4 of a Financial and
Biographical Information Report (Form 19-6) prescribed by the Department, an
authorization for Criminal Background Check, and fingerprint record. Prior to employment
in or promotion to a supervisory position or not later than thirty days following employment
in or promotion to a supervisory position the licensee shall cause an independent credit
report and a criminal background check to be performed on the person employed or
promoted. The foregoing documents shall be retained in the personnel file until one year
after termination of employment by the licensee. A "supervisory position" shall mean any
position occupied by a person responsible for the day-to-day job performance of one or more
other persons or responsible for the overall management of any check cashing outlet except
on a casual basis and irrespective of the number of subordinates employed.
(c) Persons found to have been convicted of an offense punishable as a felony involving
moral turpitude in this state may not be employed by a licensee without compliance with
O.C.G.A. §7-1-702.
(d) Persons found after investigation to have materially misstated information on Form
19-6 shall be terminated from employment; provided, however, the licensee may continue
employment, subject to review by the Department, by placing in the personnel file a complete
statement of extenuating circumstances considered valid reasons for continuing employment.
(e) All candidates for employment shall be provided a copy of this subsection by the
licensee.
(7) All checks, drafts, and money orders drawn on a financial institution domiciled in the
United States and cashed pursuant to a license or registration under Article 4A of Title 7,
O.C.G.A., shall be sent for deposit to the licensee's account at a depository financial
institution domiciled within the United States or sent for collection not later than close of
business on the next business day after the date on which the check was cashed.
(8) Each licensee and exemptee shall maintain a principal location at which the books and
records are maintained and which is accessible to the Department for examination during
normal business hours. The Department may examine exemptees to verify qualification for
exemption. The business of the licensee may be conducted through additional outlets,
including those operated as mobile facilities, provided mobile facilities maintain a regular
schedule of times and locations at which they provide check cashing services and such
schedule is filed with the Department.
(9) For purposes of O.C.G.A. Section 7-1-911(6)(F), and as further definition of the term
"check casher" a person shall be deemed to be engaged in the business of cashing checks for a
fee whenever a fee is charged for such service payable either in cash, exchange of value in
excess of regular retail sales values, in the form of a mandatory purchase of goods or services
by patrons on a regular basis which shall mean on more than ten (10) occasions in any
calendar month, or in the form of purchase of coupons or other items indicating the ability to
receive or order goods, services or catalog items.
Authority O.C.G.A. Secs. 7-1-61, 7-1-688, 7-1-704. History. Original Rule entitled "Display of License
Certificate" adopted. F. and eff. June 30, 1965. Repealed: New Rule of same title adopted. F. Nov. 19,
1975; eff. Dec. 9, 1975. Repealed: New Rule entitled "Cashers of Checks" adopted. F. Sept. 4, 1990; eff.
Sept. 24, 1990. Amended: F. Sept. 13, 1991; eff. Oct. 3, 1991. Amended: Rule retitled "Check Cashers".F.
Aug. 26, 1997; eff. Sept. 15, 1997. Amended: F. Dec. 18, 2000; eff. Jan 7, 2001. Amended: F. July 28,
2003; eff. Aug. 17, 2003.

80-5-1-.02 License, Registration and Supervision Fees for Check Cashers and
Sellers, Money Transmitters, Representative Offices and Mortgage Lenders
and Brokers; Due Dates.
(1) Check sellers and money transmitters.
(a) The annual license fee is $2,000.
(b) The annual renewal license fee is $2,000 for check sellers and $1,000 for money
transmitters and shall be due on the first day of November of each year. Where the person
or corporation engages in both the sale of checks and money transmission, the higher of the
two fees shall be paid. An annual license renewal fee not received prior to December 1 will
be penalized a late fee of $300 and cannot be assured of issuance or renewal prior to January
1.
(c) Renewal licenses shall be issued for a twelve month period.
(2) Check Cashers.
(a) The annual license fee is $500.
(b) The annual renewal license fee is $500.
(c) An initial investigation and supervision fee shall be $750 for the first year. It is not
refundable, but if the license is granted it shall satisfy the annual fee for the first license
period.
(d) Initial and renewal license fees shall also include an additional $50 for the second and
each additional location, plus a$30 processing fee for each set of fingerprint cards required to
be submitted with the application.
(e) Annual renewal license fees shall be due on the first day of August of each year.
Annual renewal license fees not received prior to the first day of September of each year will
be penalized a late fee of $200 and cannot be assured of renewal prior to October 1.
Applicants may not operate a check cashing business without a current license.
(f) Check cashers desiring exemption pursuant to Rule 80-3-1-.02(4)(b) shall file an initial
application and pay a registration fee of $200 and an annual renewal application and fee of
$100, due on the first day of August of each year. Annual renewal fees not received prior to
the first day of September of each year will be penalized a late fee of $50 and cannot be
assured of renewal prior to October 1.
(3) Registrants of representative offices, trust production offices, business production
offices, and loan production offices shall file a registration statement, as prescribed by the
department, and shall pay a registration fee of $150 on the first day of January of each year.
Such fee is intended to cover the costs of responding to questions or complaints from
consumers with regard to these entities doing business in Georgia and is in lieu of
registration under O.C.G.A. §16-14-15, as provided in O.C.G.A. §7-1-11. Registrants of
international bank representative offices shall pay a registration fee of $1,000. Each bank
holding company supervised by or registered with the department shall pay on or before
January 31 of each year an annual registration fee of $1,000. Each Georgia bank holding
company or holding company that owns a Georgia bank must pay $500 for each additional
Georgia subsidiary corporation in those categories, provided, however, any registrant
required to register and pay a fee by another paragraph of this chapter shall only be required
to pay one fee which shall be the higher fee.
(4) Mortgage lenders and brokers, licensees and registrants.
(a) The annual and renewal application and license fee for mortgage lenders shall be
$1,000. The initial $1,000 fee covers the main office and one additional branch office. Any
additional branch offices included in the initial application shall be assessed a fee of $350. A
fee of $350 will be assessed for each additional office not initially registered, if such office is
located in Georgia, and if mortgage lending activity is conducted at the office. An initial
investigation fee of $250 per applicant shall also apply. Application, investigation (initial)
and license fee must be received by the department on or before the first day of April of each
year. An application and/or license fee not received on or before the first day of April of each
year will be penalized a late fee of $300. An application and/or license fee not received prior
to the first day of June of each year cannot be assured of issuance or renewal prior to July 1.
Applicants may not conduct a mortgage business without a current license or registration.
(b) The annual and renewal application and license fee for mortgage brokers shall be $500
which covers the main office and one additional branch office. Any additional branch offices
included in the initial application shall be assessed a fee of $350. A fee of $350 will be
assessed for each additional office not initially registered, located in Georgia at which
mortgage brokering activity is conducted. Brokers include loan processors. Processors are
defined in Rule 80-11-4-.07. Such a processor may have a separate main office and other
branch offices where mortgage loan processing is done. The offices will be treated the same
as brokers' offices. An initial investigation fee of $250 per applicant shall also apply.
Application, investigation (initial) and license fee must be received by the department on or
before the first day of April of each year. An application and/or license fee not received on or
before the first day of April of each year will be penalized a late fee of $300. An application
and/or license fee not received prior to the first day of June of each year cannot be assured of
issuance or renewal prior to July 1. Applicants may not conduct a mortgage business
without a current license or registration.
(c) The annual and renewal application and registration fee for mortgage lenders required
to register but not be licensed with the department shall be $1,000, due on or before the first
day of April of each year, plus a $350 fee at renewal for any new office.
(d) The annual and renewal application and registration fee for mortgage brokers required
to register but not be licensed with the department shall be $500, due on or before the first
day of April of each year, plus a $350 fee at renewal for any new office.
(e) All license, investigation, registration, supervision and late fees must be paid prior to
renewal of the annual license or registration, reinstatement of a license or registration,
reapplication for a license or registration or any other approval from the department.
(f) All late fees collected by the department, net of the cost of recovery, which cost shall
include any cost of hearing and discovery in preparation for hearing, shall be paid into the
state treasury to the credit of the general fund or may be paid as provided in Code Section
7-1-1018(d).
(g) Applicants for approval to acquire directly or indirectly twenty-five (25) percent or more
of the voting shares of a corporation or twenty-five (25) percent or more of the ownership of
any other entity licensed to conduct business as a mortgage lender and/or a mortgage broker
under Article 13 (otherwise called change of control) shall pay a nonrefundable
investigation/application fee of $250.
(h) Application for a subsequent additional office of a licensee not included in the initial
application shall be accompanied by a nonrefundable fee of $350, as provided in Code Section
7-1-1006. A fee of $350 will be assessed any additional branch offices beyond the one
included in the initial application.
(i) No fee is assessed for a wholly owned subsidiary of a lender who files and keeps current
a proper notification statement.
(5) The department may discount or surcharge all supervision or license fees herein
provided to assure funding of annual appropriations by the General Assembly.
Authority O.C.G.A. Secs. 7-1-41, 7-1-61, 7-1-685. History. Original Rule entitled "Supervision Fees"
adopted. F. Nov. 4, 1975; eff. Nov. 24, 1975. Amended: F. June 8, 1976; eff. June 28, 1976. Repealed:
New Rule of the same title adopted. F. June 9, 1980; eff. July 1, 1980, as specified by the Agency.
Repealed: New Rule entitled "License Registration and Supervision Fees" adopted. F. May 24, 1982;
eff. June 13, 1982. Amended: F. June 28, 1984; eff. Aug. 1, 1984, as specified by the Agency.
Amended: F. June 10, 1988; eff. June 30, 1988. Repealed: New Rule of same title adopted. F. Sept. 4,
1990; eff. Sept. 24, 1990. Amended: F. Oct. 15, 1993; eff. Nov. 4, 1993. Amended: F. Sept. 26, 1995;
eff. Oct. 16, 1995. Amended: Rule retitled "License, Registration and Supervision Fees for Check
Cashers and Sellers, Representative Offices and Mortgage Lenders and Brokers; Due Dates" adopted.
F. July 14, 1998; eff. Aug. 3, 1998. Amended: F. Dec. 18, 2000; eff. Jan. 7, 2001. Amended: Rule
retitled "License, Registration and Supervision Fees for Check Cashers and Sellers, Money
Transmitters, Representative Offices and Mortgage Lenders and Brokers; Due Dates". F. July 28, 2003;
eff. Aug. 17, 2003.

120-1-3-.02 Definition of "Loans Within the Act". Amended.
Whether a loan transaction falls within the provisions of the Georgia Industrial Loan Act
as amended, is not necessarily determined by the face amount of the note but by the
amount advanced, in cash or otherwise, including insurance premiums, but excluding
interest and fees which may be added to arrive at the face amount of the note. The
transaction shall be deemed within the Industrial Loan Act if the amount so advanced,
including insurance premiums but excluding interest and other fees, is $3,000.00 or less.
Authority Ga. L. 1955, pp. 431-435; Ga. L. 1964, p. 290; Ga. L. 1963, pp. 370, 371; Ga.
L. 1964, pp. 331, 341, 342, 356; Ga. L. 1975, pp. 393, 394, as amended. Administrative
History. Original Rule was filed on July 20, 1965. Amended: Filed August 29, 1975;
effective September 18, 1975.