O.C.G.A. § 7-1-1128 — Effective date of revocation

Unless stayed by the superior court that has jurisdiction over an appeal under Code Section 50-13-19, a ﬁnal order of the commissioner revoking a license is effective immediately, and the foreign bank shall immediately cease all activity in this state requiring a license. History. Code 1981, § 7-1-1128, enacted by Ga. L. 2023, p. 651, § 48/HB 55, effective July 1, 2023. 7-1-1129. Possession by department; receivership proceedings; venue; contesting decision; liquidation and transfer of assets. (a) If the department ﬁnds that any of the factors set forth in Code Section 7-1-150 or 7-1-1126 are true with respect to a foreign bank 603 7-1-1129 licensed to establish and maintain a Georgia state branch or Georgia state agency, the department may by order of the commissioner immediately take possession of the property and business of the foreign bank in this state if that action is necessary or desirable for the protection of the interests of the depositors and creditors of the foreign bank’s business in this state or for the protection of the public. The department shall retain possession until the foreign bank resumes business in this state or is ﬁnally liquidated, except that the department may permit the foreign bank to resume business in this state on such conditions as the department requires. An order issued under this Code section shall be served on the foreign bank in the manner required by subsection (a) of Code Section 7-1-1127. (b) As soon as practicable after taking possession of the property and business of a foreign bank pursuant to subsection (a) of this Code section, the department shall initiate a receivership proceeding by ﬁling a copy of the order issued under this Code section in the Superior Court of DeKalb County to be governed by Part 7 of Article 1 of this chapter as if the foreign bank were a Georgia state bank, except as otherwise provided by this Code section. Notwithstanding the priorities established by Part 7 of Article 1 of this chapter, the depositors and creditors of the Georgia state branch or Georgia state agency arising out of transactions with and recorded on the books of the Georgia state branch or Georgia state agency have an absolute preference and priority over the creditors of the foreign bank’s offices located outside this state. (c) An action initiated that seeks to directly or indirectly affect the assets of the Georgia state branch or Georgia state agency is considered to be an intervention in the receivership proceeding. Venue for an action instituted to effect, contest, or otherwise intervene in the liquidation of a Georgia state branch or Georgia state agency is in DeKalb County. (d) The foreign bank may contest the department’s actions as provided in this subsection. On or before the tenth day after the date the department has taken possession of the property and business of a foreign bank pursuant to subsection (a) of this Code section, the foreign bank, acting through a majority of its directors, may intervene in the action ﬁled by the commissioner to challenge the department’s closing of the foreign bank’s Georgia state branch or Georgia state agency and to enjoin the department or other receiver from liquidating its assets. The court may issue an injunction restraining the department or other receiver from liquidating the foreign bank’s assets pending a resolution of the merits of the action. The department or other receiver shall comply with the restraining order but may petition the court for permission to liquidate assets as necessary to prevent their loss or diminution pending the outcome of the injunction. The department or 604 7-1-1130 other receiver shall not be required to post bond. The court shall hear such action as quickly as possible and shall give it priority over other business. The foreign bank or the commissioner or other receiver may appeal the court’s judgment as in other civil cases, except that the commissioner or other receiver shall retain all seized foreign bank assets pending a ﬁnal appellate court order even if the commissioner does not prevail in the superior court. If the department prevails in the superior court, liquidation of the assets of the Georgia state branch or Georgia state agency may proceed unless the superior court or appellate court orders otherwise. If liquidation is enjoined or stayed pending appeal, the superior court retains jurisdiction to permit liquidation of assets as necessary to prevent their loss or diminution pending the outcome of the appeal. (e) After the commissioner or other receiver has completed the liquidation of the property and business of a foreign bank, the commissioner or other receiver shall transfer any remaining assets to the foreign bank in accordance with the court’s orders, except that: (1) If the foreign bank has an office in another state of the United States that is in liquidation and the assets of the office appear to be insufficient to pay in full the creditors of that office, the court shall order the commissioner or other receiver to transfer to the liquidator of that office the amount of the remaining assets that appears to be necessary to cover the insufficiency; or (2) If the foreign bank has two or more such offices in liquidation and the amount of remaining assets is less than the aggregate amount of insufficiencies with respect to such offices, the court shall order the commissioner or other receiver to distribute the remaining assets among the liquidators of the offices in the manner the court ﬁnds equitable. History. Code 1981, § 7-1-1129, enacted by Ga. L. 2023, p. 651, § 48/HB 55, effective July 1, 2023. 7-1-1130. Dissolution, termination, or cancellation of foreign corporation; obligations. (a) If a foreign bank licensed to maintain a Georgia state branch or Georgia state agency in this state is dissolved, has its authority or existence terminated or canceled in the jurisdiction of its incorporation, or has its authority to maintain a Georgia state branch or Georgia state agency terminated by the Board of Governors of the Federal Reserve System under 12 U.S.C. Section 3105(e) of the International Banking Act, an officer, manager, or agent of the foreign bank shall immediately deliver to the department: (1) A certiﬁed copy of: 605 7-1-1131 (A) A certiﬁcate of the official responsible for records of banking corporations of the foreign bank’s jurisdiction of incorporation attesting to the occurrence of dissolution or of termination or cancellation of its authority or existence; (B) An order or decree of a court directing the dissolution of the foreign bank or the termination or cancellation of its authority or existence; or (C) An order of the Board of Governors of the Federal Reserve System terminating its authority under 12 U.S.C. Section 3105(e) of the International Banking Act; and (2) The documents and information required by subsection (c) of Code Section 7-1-1125. (b) The ﬁling of the certiﬁcate, order, or decree has the same effect provided by Code Section 7-1-1128 as if the license issued under this article were revoked by the department as of the effective date of termination or cancellation speciﬁed in the certiﬁcate, order, or decree unless the department orders an earlier effective date, subject to the procedural protections of Code Section 7-1-1127. History. Code 1981, § 7-1-1130, enacted by Ga. L. 2023, p. 651, § 48/HB 55, effective July 1, 2023. PART 3 STATE REPRESENTATIVE OFFICES 7-1-1131. Establishment of state representative offices; application requirements; annual registration; rules and regulations. (a) A foreign bank may establish a Georgia state representative office upon approval by the department of an application for registration. Such application shall: (1) Be accompanied by all registration fees required by rule or regulation; (2) Be in the form speciﬁed by the department; (3) Be signed and acknowledged by an officer of the foreign bank; (4) Contain as an exhibit or attachment a copy of the foreign bank’s notice or application submitted to the Board of Governors of the Federal Reserve System under 12 U.S.C. Section 3107 of the International Banking Act, and, when issued, the order or notiﬁcation from the Board of Governors indicating that the representative office has been approved, if such notice or application is required; 606 7-1-1132 (5) Be submitted when the federal notice or application is submitted to the Board of Governors of the Federal Reserve System; and (6) Directly or in exhibits or attachments contain: (A) The name of the foreign bank; (B) The street and mailing address where each Georgia state representative office is to be located in this state and the name of the person who shall be in charge of the business and affairs of the Georgia state representative office; (C) The location of its initial registered office in this state; (D) The managerial resources of the foreign bank, including the competence, experience, and integrity of the officers and directors; the integrity of its principal shareholders; and management’s experience and capacity to engage in international banking; (E) A complete and detailed audited statement of the ﬁnancial condition of the foreign bank as of a date not more than 360 days before the date of the ﬁling; and (F) Other information the department requires. (b) Each Georgia state representative office shall submit an annual registration with the department as set forth in the rules and regulations enacted by the department. (c) The department may adopt rules and regulations prescribing abbreviated registration procedures and standards for foreign banks that have already established an initial Georgia state representative office to establish additional Georgia state representative offices. (d) A foreign bank that maintains a Georgia state branch, a federal branch, a Georgia state agency, or a federal agency in this state is authorized to establish or maintain one or more Georgia state representative offices. History. Code 1981, § 7-1-1131, enacted by Ga. L. 2023, p. 651, § 48/HB 55, effective July 1, 2023. 7-1-1132. Location and authority of offices; relocation.