TITLE 7 BANKING AND FINANCE

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

ARTICLE 2 BANKS AND TRUST COMPANIES

7-1-370. Deposits by financial institutions.

1. 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.
2. 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.

(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.)

The 2016 amendment, effective July 1, 2016, substituted "financial institution" for "bank" in the introductory paragraph of subsections (a) and (b); and deleted "or equivalent to deposit insurance provided by" following "issued by" in paragraph (a)(3).