HOHENWALD, Tenn. (AP) _ A great-grandson of the founder of Coca-Cola Co. may be allowed to avoid a prison sentence for bank fraud in return for setting up a $2 million scholarship fund for Lewis County students.

John H. Candler Jr. of Atlanta was convicted in November on eight counts of passing $3.8 million in fraudulent checks on the now-defunct Hohenwald Bank and Trust Co. He was sentenced to 11 years in prison.

Circuit Judge Elmer Davies on Tuesday set a July 13 hearing on the proposal by the great-grandson of Coca-Cola founder Asa Candler.

''The man stole nearly $4 million from those kids' parents,'' said former bank director Bob Weeks. ''To ask him to give $2 million back to the parents is a small price to pay.''