On Friday, November 5, 2010, the Georgia Department of Banking and Finance determined that the final rule being adopted to address loan renewals will not contain the requirement that the loan be a performing loan, and elected not to make any revisions to Rule 80-1-5-.01.  In addition to withdrawing the proposed rule, the Georgia DBF has affirmatively confirmed that it no longer interprets the statute as pertaining only to “performing” loans.  As we’ve previously discussed, this brings the Georgia legal lending limits in the context of a loan renewal into parity with the comparable requirements for national banks.

The Georgia DBF’s announcement was as follows:

In an effort to ensure parity between state and federally chartered banks regarding the renewal of loans, the Department no longer interprets 7-1-285(c)(9) as pertaining to only “performing” loans as originally stated in our February 2010 bulletin. Bankers are encouraged to familiarize themselves with 7-1-285(c)(9) and ensure that safe and sound underwriting procedures are undertaken and documented when making these renewal/restructuring decisions.

Credit Debit and Prepaid Cards,  cc