HB 15: Banking and finance; update terminology; provisions

Georgia's banking and finance code (Title 7) governs banks, credit unions, mortgage companies, foreign banking institutions, and merchant acquirer limited purpose banks (specialty banks that process merchant card payments). House Bill 15 makes dozens of technical updates across these areas rather than one single policy change. Among the changes: credit union and bank incorporation papers would list founders' counties of residence instead of home addresses. New licensing rules let the Department of Banking and Finance withdraw incomplete applications after 30 days. A new statewide definition of 'disqualifying crime' lets regulators deny or revoke licenses at any time for certain serious felonies, not just within seven years. Mortgage lenders and brokers face new minimum net worth, liquidity, corporate governance, and board of directors requirements. Foreign banks get updated relocation notice rules, and merchant acquirer banks move from government fingerprint checks to commercial background checks. The bill repeals conflicting laws and does not state a delayed effective date beyond the standard process.

• Replaces home addresses with counties of residence in published incorporation notices for banks and credit unions, and updates credit union incorporation and approval procedures.
• Creates a statewide definition of 'disqualifying crime' allowing the Department of Banking and Finance to deny or revoke licenses at any time for serious felonies like fraud, embezzlement, or money laundering, not just within seven years.
• Lets the department administratively withdraw incomplete license applications after giving applicants 30 days to fix them, across several license types.
• Adds new minimum net worth ($50,000 to $100,000) and liquidity ($1 million or more) requirements for mortgage brokers and lenders, plus mandatory board of directors and risk management programs.
• Changes background check procedures for merchant acquirer limited purpose banks from government fingerprint checks to commercial background checks paid for by the applicant.
• Revises foreign bank relocation rules, replacing formal applications with 30-day advance notifications unless the department flags supervisory concerns.

Banks, trust companies, credit unions, mortgage lenders and brokers, foreign banking institutions operating in Georgia, merchant acquirer limited purpose banks (specialty payment-processing banks), and the Department of Banking and Finance, which administers and enforces these licensing and oversight rules.

People applying to run or work for these financial institutions could face license denial for old serious crimes, and mortgage companies would need to hold more capital and set up formal governance and risk oversight, which could affect how these businesses are structured and staffed in Georgia.

• Section 9 lets the department deny or revoke money transmission licenses at any time if the applicant committed a 'disqualifying crime,' expanding beyond the prior seven-year lookback.
• Section 19 (new Code Section 7-1-1022) sets minimum net worth and liquidity requirements for mortgage brokers and lenders, ranging from $50,000 net worth for brokers to $1 million liquidity for larger lenders.
• Section 20 (new Code Section 7-1-1023) requires mortgage lenders and brokers to establish a board of directors, a written corporate governance framework, internal audits, and an annual risk management assessment.
• Section 25 changes foreign bank branch relocation from a formal application process to a 30-day advance notification, unless the department requires an application due to supervisory concerns.
• Section 33 replaces Georgia Crime Information Center fingerprint-based background checks for merchant acquirer bank employees with commercial background checks paid for by the employer.
• Section 17 requires mortgage lenders to obtain an annual external audit of their books, with limited exceptions the department may grant by rule.

1. 2025-07-01Effective Date
2. 2025-05-14Act 250
3. 2025-05-14House Date Signed by Governor (House)
4. 2025-04-07House Sent to Governor (House)
5. 2025-03-10Senate Passed/Adopted (Senate)
6. 2025-03-10Senate Third Read (Senate)
7. 2025-02-20Senate Read Second Time (Senate)
8. 2025-02-19Senate Committee Favorably Reported (Senate)

• Bruce Williamson (R, HD-112)Primary sponsor
• Noel Williams, Jr. (R, HD-148)
• Demetrius Douglas (D, HD-78)
• Robert Dickey (R, HD-134)
• Jason Ridley (R, HD-6)
• Jaclyn Ford (R, HD-170)
• John F. Kennedy (R, SD-18)

1. PassedHouse voteFebruary 12, 2025

   163 yea, 1 nay (9 not voting, 7 excused)

   PASSAGE: House Vote #26

2. PassedSenate voteMarch 10, 2025

   46 yea, 1 nay (1 not voting, 8 excused)

   PASSAGE: Senate Vote #222

• banking regulation
• mortgage lending
• credit unions
• financial licensing
• consumer finance