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Current Events - 06/2/2003

College student credit education opportunity through ABA

Recent statistics indicate that the average college freshman receives eight credit card solicitations a year. With so much attention being paid to the availability of credit for young adults, the American Bankers Association has put together an education kit called the "In Charge Kit." This kit provides information on how to establish and maintain good credit. On October 16, 2003, the ABA will celebrate its "In Charge Day," highlighting the efforts and achievements of banks across the country who have taken part in distributing the "In Charge Kit" to teens in their communities. If you would like to participate in the "In Charge" campaign (please see attachment for details), please contact the ABA at 800/BANKERS for more information.

Pre-emption hearing in Sacramento

On May 21st, the Assembly Banking and Finance Committee and Senate Banking, Commerce and International Trade Committee sponsored a joint hearing on the issue of federal pre-emption and its impact on California financial institutions and consumers. The committees heard from Attorney General Bill Lockyer, Department of Corporations Commissioner Demetrios Boutris and Department of Financial Institutions Commissioner Don Meyer. In addition, several academics were invited to testify as well as representatives from Consumers Union and U.S. Public Interest Research Group (PIRG).

CBA testified on behalf of its members with the able assistance of Richard Darwin of Buchalter, Nemer, Fields and Younger and CBA's general counsel Leland Chan. As a result of the hearing, the committee chairs are considering whether or not they will send a letter or a joint resolution to Congress urging that both legislative bodies work together to preserve the dual banking system.

ATM fee decision final

As expected, the U.S. Supreme Court let stand the 9th Circuit Court of Appeal's decision that nullified the ATM fee bans in San Francisco and Santa Monica. The decision marks the final chapter in the cities' costly attempt to regulate a core banking service at the local level. One reason for the decision is that the 9th Circuit's decision is consistent with those of other federal courts that have considered similar cases. It is likely that the Supreme Court's action will prove to be the end of ATM fee regulation, if not nationally, then certainly in California and other western states within the 9th Circuit's jurisdiction.

CBA commemorative video

This year's Regulatory Compliance Conference in San Francisco will be CBA's 25th anniversary, and we will commemorate the occasion with a video montage honoring the accomplishments and good works of California banks and bankers over the years. The video will be shown during the conference in October as part of the keynote presentation. Jim Curtis, an attorney with Bank of the West and long-time contributor to the conference, will be the keynote speaker and is spearheading this effort. Please read Jim's attached letter and take the time to submit photos or other visual materials about your bank, employees, customers, or community to be included in the video.

Transition rules for HMDA changes

The Federal Reserve has issued transition rules applicable to the new Home Mortgage Data Act (HMDA) rules, applicable to mortgage applications received before January 1, 2004 but not completed until after that date. Please see CBA's attached summary of the rules.

Fed PAC fundraising update

This week brings some major movement in the standings of our PAC contribution campaign. Though F&M Bank remains in the lead, Pacific State Bank moved onto the list and tied Mission Community Bank for fourth place. Temecula Valley Bank moved up from 14th to 11th place. CBA thanks the employees of the following members who have exceeded their CBA Federal PAC goal:

F&M Bank 265%
The Mechanics Bank 256%
Bank of Stockton 173%
Mission Community Bank 157%
Pacific State Bank 157%
Visalia Community Bank 155%
Pacific Crest Bank 152%
Encino State Bank 146%
First Northern Bank 141%
Affinity Bank 135%
Temecula Valley Bank 133%
Mid-State Bank & Trust 129%
Montecito Bank & Trust 125%
Alliance Bank 124%
Verdugo Banking Company 118%
Union Bank of California 107%

As of 5/28/03

Legislative meetings update

The following meetings have been scheduled between CBA members and their elected officials. If you would like more information on these meetings, or would like to participate in any of the meetings, please contact Mary Boruff at 916/441-7377, ext. 207. If you are not available, please send a senior officer from your bank. These meetings are a good opportunity for your senior management to get to know the legislators who vote on the issues of importance to your bank.

You are welcome to phone in to a grassroots conference call (888/903-2663) every Thursday afternoon (4:00 pm - State Legislature / 4:30 pm - House of Representatives) prior to a scheduled district office meeting(s) to discuss CBA's priority issues and to answer any questions you may have regarding meeting with your legislator.

*          Freshman legislator

**        Meeting rescheduled – new time

***      Meeting rescheduled – new date/time