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Official Code of Georgia Annotated

Title 7. BANKING AND FINANCE · Chapter 1. FINANCIAL INSTITUTIONS · Article 2. BANKS AND TRUST COMPANIES · Part 7. BANKING DEPOSITORIES, RESERVES, AND REMISSIONS

7-1-370. Deposits by financial institutions.

Active

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

  1. (a)

    Subject to the restrictions of subsection (b) of this Code section and of Code Section 7-1-371 in regard to reserve funds, a financial institution may deposit its funds in any depository which is:#

    1. (1)

      Selected by, or in any manner authorized by, its directors;#

    2. (2)

      Authorized by law to receive deposits; and#

    3. (3)

      In the case of a depository located in the United States, one which has deposit insurance issued by a federal public body to depositories of the type involved.#

  2. (b)

    If a director of the financial institution has a relationship to a depository as either:#

    1. (1)

      An officer or director; or#

    2. (2)

      An owner of 5 percent or more of the shares of the depository, the depository shall be approved by a majority of the directors other than the director who has such relationship.#

The notes below are printed with the section but are not enacted law (O.C.G.A. § 1-1-1(c)). They are shown apart from the text.

History

Code 1933, § 41A-1701, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1981, p. 1366, § 10; Ga. L. 1997, p. 485, § 14; Ga. L. 2016, p. 390, § 2-4/HB 811.

Read the official page (the state's PDF, opened at the page this text was read from).

Current through: Including Acts of the 2025 Regular Session of the General Assembly.

Text read from t7-t8-(v5)-2024-pdf.pdf, Volume V5, 2024 edition, pages 218 to 219; merge action: carried; file SHA-256 5c69f28428d8.