October 28, 2008
Authored by: Robert Klingler
On October 24, 2008, the Georgia Department of Banking and Finance issued a press release waiving approval of a state financial institution seeking to amend its articles to facilitate the issuance of preferred stock to the U.S. government as part of its participation in the Treasury program. Shareholder approval is still required, but this news provides some regulatory relief for Georgia banks without holding companies that must amend their articles to provide for blank check preferred stock.
De novo Georgia banks would still be required to submit changes to their business plan for Department review and approval, although such review related to participation in the Treasury program will be expedited.