(a)A foreign bank licensed to establish and maintain a Georgia state branch or Georgia state agency shall be required to keep dollar deposits or investment securities, with unaffiliated banks in this state that the foreign bank designates and the department approves, or money and securities pledged to the department in an aggregate amount to be determined by the department, valued at the lower of principal amount or market value, consisting of:
(1)United States dollar deposits;
(2)Bonds, notes, debentures, or other legally created, general obligations of a state, an agency or political subdivision of a state, the United States, or an instrumentality of the United States;
(3)Securities that this state, an agency or political subdivision of this state, the United States, or an instrument
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(a) A foreign bank licensed to establish and maintain a Georgia state branch or Georgia state agency shall be required to keep dollar deposits or investment securities, with unaffiliated banks in this state that the foreign bank designates and the department approves, or money and securities pledged to the department in an aggregate amount to be determined by the department, valued at the lower of principal amount or market value, consisting of: (1) United States dollar deposits; (2) Bonds, notes, debentures, or other legally created, general obligations of a state, an agency or political subdivision of a state, the United States, or an instrumentality of the United States; (3) Securities that this state, an agency or political subdivision of this state, the United States, or an instrumentality of the United States has unconditionally agreed to purchase, insure, or guarantee; (4) Certificates of deposit, payable in the United States, and bankers' acceptances, provided that, in either case, the issuer has an adequate capacity to meet financial commitments, meaning the risk of default by the obligor is low and the full and timely repayment of principal and interest is expected, for the projected life of the asset or exposure expected; (5) Repurchase agreements; or (6) Other assets as may be permitted by rule. (b) The aggregate amount of deposited investment securities and dollar deposits for each Georgia state branch or Georgia state agency established and operating under this Code section shall be not less than the greater of: (1) That amount of capital which would be required of a Georgia state bank under Code Section 7-1-410 ; or (2) One percent of the total liabilities of such Georgia state branch or Georgia state agency, including acceptances, but excluding accrued expenses and amounts due and other liabilities to offices, branches, agencies, and subsidiaries of such foreign bank. Notwithstanding the above deposit requirement, the department is authorized to enact rules and regulations pursuant to this article to establish a maximum dollar amount of deposited investment securities and dollar deposits for certain highly rated foreign banks. For prudential or supervisory reasons, the department may require that a foreign bank has deposited investment securities and dollar deposits above the minimum amount. (c) The assets deposited and the amount of the assets to be maintained under subsection (a) of this Code section are subject to the conditions and limitations the department considers necessary or desirable for the maintenance of a sound financial condition; the protection of depositors, creditors, and the public interest in this state; and the support of public confidence in the business of the Georgia state branch or Georgia state agency. (d) A foreign bank shall require its depository bank to segregate its dollar deposits and deposited investment securities on the depository bank's books and records. The funds deposited and obligations referred to in subsection (a) of this Code section that are placed in safekeeping at a depository bank: (1) Shall not be reduced in value below the minimum required for that Georgia state branch or Georgia state agency without the prior approval of the department, but in no event below the minimum amount required under Code Section 7-1-410 ; (2) Shall be maintained pursuant to an agreement prescribed by the department that shall be a written agreement entered into with the department; and (3) Shall be free from any lien, charge, right of setoff, credit, or preference in connection with any claim of the depository bank against the foreign bank. (e) Each Georgia state branch or Georgia state agency shall file with the department such reports as required by rule or regulation to determine compliance with this Code section.