TITLE 7 BANKING AND FINANCE

Section 1. Financial Institutions, 7-1-1 through 7-1-1021.

ARTICLE 2 BANKS AND TRUST COMPANIES

7-1-289. Security for deposits.

1. A bank may pledge or otherwise grant security interests in its assets to secure deposits of:
   1. Public funds;
   2. Funds of a pension fund for employees of a public body of the state;
   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. Funds held by the department as receiver;
   5. Funds which are required to be secured by law or by an order of a court;
   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. Public funds deposited in another bank.
2. 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.

(Code 1933, § 13-2068, enacted by Ga. L. 1973, p. 526, § 8; Code 1933, § 41A-1310, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1993, p. 929, § 1; Ga. L. 1995, p. 673, § 14; Ga. L. 2016, p. 390, § 7-6/HB 811.)

The 2016 amendment, effective July 1, 2016, deleted ", unless otherwise specifically approved in writing by the department," following "A bank may" in the introductory paragraph of subsection (a) and substituted the present provisions of subsection (b) for the former provisions, which read: "A bank may not pledge or otherwise grant security interests in its assets as security for deposits other than the deposits listed in subsection (a) of this Code section."