7-1-289. Security for deposits.

A bank may pledge or otherwise grant security interests in its assets to secure deposits of:#

1. (1)

   Public funds;#

2. (2)

   Funds of a pension fund for employees of a public body of the state;#

3. (3)

   Funds for which a public body of the state or an officer or employee thereof or any court of law is the custodian or trustee pursuant to statute;#

4. (4)

   Funds held by the department as receiver;#

5. (5)

   Funds which are required to be secured by law or by an order of a court;#

6. (6)

   Its own fiduciary funds or the fiduciary funds of an affiliate. In either case, the funds shall be deposited with the pledging institution and held in its commercial department; and#

7. (7)

   Public funds deposited in another bank.#

Except for the deposits listed in subsection (a) of this Code section, a bank may not pledge or otherwise grant security interests in its assets as security for deposits unless otherwise specifically approved in writing by the department.#