An Oct. 29 agreement between the Federal Reserve System and Georgia Bancshares, the holding company of Bank of Georgia (BOG), stipulates that the company will not declare or pay dividends and will not incur debt or buy or redeem shares without Fed approval.

BOG President Pat Shepherd said Wednesday the agreement with the Federal Reserve earlier in the day mirrored the Cease and Desist order from the Federal Deposit Insurance Corp. (FDIC) issued June 30.

Shepherd said the FDIC order pertained to the bank while the Federal Reserve agreement pertained to the holding company, Georgia Bancshares.

“It’s an agreement with the Fed that says the holding company will comply with the agreement the bank has with the FDIC,” Shepherd said.

The holding company is a shell of the bank, so the procedure applies to the bank/holding company relationship, said Shepherd.

And following in course, the Fed agreement customarily comes a couple of months after the FDIC order, Shepherd said.