The treasurers of the several counties are authorized to deposit the county funds which may come into their hands as county treasurers in any bank or banking institution which has been designated by law as a depository for the funds of the state.
(Ga. L. 1917, p. 199, § 1; Code 1933, § 23-1017.)
Law reviews.- For article considering the public official's potential liability for funds, losses and torts, and suggesting insurance coverage, see 11 Mercer L. Rev. 288 (1960).
JUDICIAL DECISIONS
Requirements of section not absolute.
- None of these provisions, Ga. L. 1917, p. 199, §§ 1, 2, and Ga. L. 1924, p. 86, §§ 1, 2 (see now O.C.G.A. §§ 36-1-8,36-6-16 and36-6-17), make the statutory requirements absolute. Century Indem. Co. v. Fidelity & Deposit Co., 175 Ga. 834, 166 S.E. 235 (1932).
It must be observed that neither Ga. L. 1917, p. 199, § 1 (see now O.C.G.A. § 36-6-16) nor Ga. L. 1924, p. 86, §§ 1, 2 (see now O.C.G.A. § 36-1-8) make the statutory requirements absolute; county treasurers may follow the provisions of either of these statutes, and thereby become absolutely safe from loss, as well as making safe the public funds with which they are entrusted; however, it appears the treasurer may keep the funds in the treasurer's possession so long as the treasurer is prepared to pay the funds out when lawfully authorized and required so to do. Allen v. Henderson, 48 Ga. App. 74, 172 S.E. 94 (1933).
Right to receive deposit not conditional upon giving bond.
- Former Code 1933, § 23-1018 (see now O.C.G.A. § 36-6-17) did not purport to condition the right to receive the deposit upon the giving of a bond but fixed a duty on the depository which has undertaken so to act to give a bond to the treasurer sufficient to protect the treasurer officially from any loss. Hancock County v. Hancock Nat'l Bank, 67 F.2d 421 (5th Cir. 1933).
Fact of deposit is not default.
- County treasurers in Georgia very generally deposit the treasurers' public funds in a bank as a convenient and safe method of handling. Such deposits have never been considered as amounting to a default. Century Indem. Co. v. Fidelity & Deposit Co., 175 Ga. 834, 166 S.E. 235 (1932).
Treasurer liable if unable to produce funds.
- Notwithstanding such deposits, the treasurer and the treasurer's bondsmen are liable, if the funds are not forthcoming when officially required. Century Indem. Co. v. Fidelity & Deposit Co., 175 Ga. 834, 166 S.E. 235 (1932).
Cited in Hancock County v. Hancock Nat'l Bank, 67 F.2d 421 (5th Cir. 1933); American Sur. Co. v. City of Thomasville, 73 F.2d 584 (5th Cir. 1934); Austin-Western Rd. Mach. Co. v. Fayette County, 99 F.2d 565 (5th Cir. 1938).
RESEARCH REFERENCES
Am. Jur. 2d.
- 63C Am. Jur. 2d, Public Funds, § 7 et seq.
C.J.S.- 20 C.J.S., Counties, §§ 195, 205, 206. 26B C.J.S., Depositaries, § 40 et seq.