Georgia § 7-1-370 Deposits by financial institutions

Georgia Statutes

§ 7-1-370 — Deposits by financial institutions

(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)Selected by, or in any manner authorized by, its directors;

(2)Authorized by law to receive deposits; and (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.

(b)If a director of the financial institution has a relationship to a depository as either:

(1)An officer or director; or (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.

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(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) Selected by, or in any manner authorized by, its directors; (2) Authorized by law to receive deposits; and (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. (b) If a director of the financial institution has a relationship to a depository as either: (1) An officer or director; or (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.

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