| FROM THE IBAT LEGAL DEPARTMENT |
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Home Equity Interpretations Lawsuit
In a Special Compliance Bulletin dated October 18, 2005, we updated you on the status of the lawsuit filed by ACORN against the Finance Commission and the Credit Union Commission acting jointly in promulgating certain of the Interpretive Rules regarding home equity lending. After months of legal maneuvering, a final summary judgment and temporary stay order was issued May 1, 2006. As expected, the order invalidated a number of the interpretive rules. Bottom line: Bankers can continue to rely on the interpretations for at least the next 30 days, or until June 1. It is likely that an appeal will continue the stay until there is a final ruling. If you are uncomfortable with relying on these rules, then review the bulletin referenced above for recommendations on how to modify your practices in the event these interpretations are held invalid. We will keep you apprised of any developments. |
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| ON THE HILL |
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House Financial Institutions Committee Meets
An interim hearing was held to consider two issues: credit card payment notices and mortgage document preparation. Rep. Solomons expressed interest in providing greater protection to Texas consumers with regard to payment of credit cards to the extent this is NOT preempted by federal law (like Truth in Lending). Specifically, he feels that credit card companies do not always give consumers their statements in time for them to pay within the grace period.
In addition, the committee heard from attorneys and lenders with regard to the need for attorneys to prepare all documents relating to real property transactions. Forty other states permit lenders to prepare their own residential loan docs, savings consumers money. The tone of the questions from the committee reflected a general attitude that it is better for docs to be prepared by experts.
The remaining interim study issues will be addressed in a marathon hearing later this summer.
State Tax Update
The new business tax, HB 3, passed the Senate this week in the exact form sent over from the House - thus avoiding the potential for revisions or other potential "blow-ups" in a conference committee. The bill is now on its way to the Governor's desk. Struggles continue in the Senate regarding the the tobacco tax increase (HB 5), and a much amended bill designed to address controversial school funding issues (HB 1). As stated in last week's Bottom Line, the apportionment issue remains key to the ultimate impact of the new tax on your bank. A worksheet and other information are available on our website. |
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| LEGAL EASE QUESTION OF THE WEEK |
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Disaster planning is really on our minds. We have good procedures for retrieving data, but we are concerned about how we handle our staff. Any ideas?
To find out the answer, click on the flashing question mark. And you can also check out our searchable database of other frequently asked questions. |
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| 100 YEAR ANNIVERSARY |
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IBAT would like to congratulate the Burton State Bank on the occasion of its 100th Anniversary commemorating its past and the beginning of another century of service to the community. The IBAT Board of Directors and staff congratulate President and CEO E. J. Muehlbrad, Chairman Brian Fisher and Vice Chairman John Fuchs, along with the directors, officers and employees on this important milestone for the citizens of Burton, Washington County and the community banking industry. |
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| SOLUTIONS FROM SERVICES |
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The IBAT Bond Trust has recently added First National Bank in Trinity to their program, reports Tony Landry, the Bond Trust's new marketing director. Tony joined USI (the administrator of the IBAT Bond Trust since 1980) in late 2005, and his ambitious goal is to reach each IBAT member bank in 2006. The IBAT Bond Trust has broad coverage terms, experienced and local claims and administrative service, and competitive pricing.
If you have not already heard from Tony, it will not be long before you do. Should you wish to reach him, the IBAT Bond Trust's toll free number is (800) 392 2462 or via e-mail at anthony.landry@usi.biz. |
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| CONSUMER TIPS |
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According to recent estimates, a child who entered kindergarten in 1995 will face four-year college costs exceeding $100,000 if he or she attends a public college. You can double that amount for a private university. This month's Consumer Tips helps you navigate the college financial maze. |
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| BAKER WEEKLY |
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U.S. Adds 138k Jobs, Less Than Predicted; Jobless Rates Steady at 4.7% - Read more in this week's newsletter from The Baker Group.
Although this information has been obtained from sources, which we believe to be reliable, we do not guarantee its accuracy. This is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. |
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| 2006 LEADERSHIP CONFERENCE |
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DEADLINE FOR EARLY BIRD PRICING IS
FRIDAY, MAY 5
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| MAKING A DIFFERENCE AWARD |
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Nominations are now under way for the 2006 Making a Difference Award. Is there one special person in your bank who contributes above and beyond? The person everyone looks to for ideas or help. The person who contributes through attitude, character and deeds far more than their required job description. Or perhaps in addition to his or her bank responsibilities, this individual makes important contributions to the local community through volunteer efforts in the schools, hospitals, and civic organizations.
This is your opportunity to nominate this special person for the IBAT Making a Difference Award. IBAT is accepting nominations for this award from May 1-June 6.
For a Nomination Form and more information, click here. |
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| IBAT EDUCATION FOUNDATION |
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Which Texas Congressman is a fierce promoter of personal financial literacy and recently won an award for his passion for this topic? Click here for the answer. |
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ON THE EDUCATION FRONT |
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A Big Fiesta Thank you to last week's Exceptional Assistant Summit Attendees, as well as the following Sponsors:
AccuSource Solutions
IBAT Services
| Upcoming programs co-sponsored by IBAT and Professional Bank Services: |
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This month's Web Casts: |
June 5 - Lubbock
June 6 - Irving
June 7 - Waco
June 8 - San Antonio |
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COMING SOON |
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For a complete listing of upcoming events, click here. Meanwhile, please mark your calendar for some of our key events for 2006.
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June 15-17, 2006 - Galveston |
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August 6-11, 2006 - Lubbock |
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IBAT 32nd Annual Convention
October 1-3, 2006 - San Antonio |
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October 8-13, 2006 - Dallas | | |
