O.C.G.A.

O.C.G.A. § 7-1-780 (2019)

Lien on deposits to secure loans

✓ O.C.G.A. — 2019 edition (Public.Resource.Org Release 73)

Code text and O.C.G.A. statutory annotations on this page reflect the 2019 Official Code of Georgia Annotated (Public.Resource.Org Release 73, 2019-08-21; public domain per Georgia v. Public.Resource.Org, 2020). The Syfert case-law annotations in Notes of Decisions, below, are current.

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To secure loans, savings and loan associations shall have a lien without further agreement or pledge upon all deposits with it by a borrower; and, upon default upon any loan, any such association may, without notice to or consent of the borrower, cancel on its books part or all of the amount outstanding to the credit of the borrower not exceeding his obligations to the association and apply such amount in payment of the obligations.

History

Ga. L. 1937-38, Ex. Sess., p. 307, § 11; Code 1933, § 41A-3511, enacted by Ga. L.

1974, p. 705, § 1; Ga. L. 2016, p. 390, § 7-4/HB 811.

Annotations

JUDICIAL DECISIONS “Freeze” on checking account funds did not violate the automatic stay provisions of the Bankruptcy Code.

Georgia Fed. Bank v. Owens-Peterson, 39 B.R. 186, 1984 Bankr. LEXIS 5820 (Bankr. N.D. Ga. 1984).

RESEARCH REFERENCES Am. Jur. 2d. 10 Am. Jur. 2d, Banks and Financial Institutions, § 780. C.J.S. C.J.S., Building and Loan Associations, Savings and Loan Associations, and Credit Unions, § 69. ALR. Bank’s right of setoff, based on debit of

one depositor, against funds in account standing in names of debtor and another, 68 A.L.R.3d 192. Acts in Violation of Bankruptcy Stay as Void or Voidable Under Federal Law - Federal Appellate Cases, 81 A.L.R. Fed. 3d 6.