Funds in the hands of a receiver may be deposited in one or more interest bearing accounts in the name and for the benefit of the receivership estate with one or more financial institutions, provided that all of the following conditions are satisfied:
(a) The deposits are fully guaranteed or insured under federal law.
(b) The financial institution in which the funds are deposited is not a party to the action in which the receiver was appointed.
(c) The receiver does not own 1 percent or more in value of the outstanding stock of the financial institution, is not an officer, director, or employee of the financial institution, and is not a sibling, whether by the whole or half-blood, spouse, aunt, uncle, nephew, niece, ancestor, or lineal descendant of an owner, officer, employee, or director.
(Amended by Stats. 1998, Ch. 932, Sec. 16. Effective January 1, 1999.)