New law that will help Georgia bank with troubled loans and liquidity.

"Banking bill first to gain Perdue signature

Feb 11, 2010 - The Atlanta Business Chronicle

Gov. Sonny Perdue signed a banking bill Thursday about an hour after it passed the Senate, making it the first measure to get through the legislative process this year.

The legislation, which passed the Senate unanimously and won overwhelming approval in the House last week, has been pitched by supporters as providing a way to ease the flow of capital in a tight economy.

It eliminates a provision in current Georgia law that has effectively prevented state-chartered banks from renewing large loans, even for performing customers. That, in turn, has made it more difficult for real estate developers and other large borrowers to gain access to additional capital.

“The legislation is a bank flexibility measure that will help Georgia banks and businesses navigate through these difficult times,” Perdue said shortly before signing the bill.

Many state-chartered banks in Georgia have complained that the state law was unfair because the lending limit to a single borrower it applied to them did not affect federally-chartered banks.

The bill became law with the governor’s signature.

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