Deposit Insurance Requirements; Public Notices When Deposits Not Properly Insured

  1. Law
  2. Georgia Code
  3. Banking and Finance
  4. Financial Institutions
  5. Banks and Trust Companies
  6. General Matters
  7. Deposit Insurance Requirements; Public Notices When Deposits Not Properly Insured

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  1. Every bank shall obtain and maintain deposit insurance satisfactory to the department; provided, however, that banks which have had their deposit insurance withdrawn or canceled may, in the discretion of the department, continue to accept deposits; provided, further, that such banks shall within six months after such withdrawal or cancellation of insurance obtain deposit insurance, satisfactory to the department, written by an insurance company authorized to transact business in this state or by the Federal Deposit Insurance Corporation. The department may, in its discretion, for cause shown, extend the time limitation in which deposit insurance must be obtained.
  2. Deposit insurance required to be obtained in subsection (a) of this Code section need not be in excess of amounts insured by the Federal Deposit Insurance Corporation at the time the insurance is obtained; but wherever the insurance coverage is, in the opinion of the department, less than amounts insured by the Federal Deposit Insurance Corporation, the bank shall be required to post at a conspicuous place near the entrance of such bank a sign in boldface print, in letters at least four inches high, which states "Deposits Not Insured" or "Deposits Insured Up To (insert amount of deposit insurance)." Such wording shall also follow the name of the bank wherever it is written or printed and shall be posted in writing which is easily legible in letters at least one inch high at each window or desk receiving deposits.

(Ga. L. 1966, p. 692, § 17; Code 1933, § 41A-1105, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 2020, p. 493, § 7/SB 429.)

The 2020 amendment, effective July 29, 2020, part of an Act to revise, modernize, and correct the Code, substituted "provided, further, that such" for "provided, further, such" in the second proviso of subsection (a).

Cross references.

- Restrictions on advertising for sale instruments purporting to be insured or guaranteed in manner comparable to insured deposit or shared account when such instrument does not in fact possess comparable insurance coverage, § 7-1-133.

For similar provisions as to deposit insurance requirements for credit unions, § 7-1-666.

For similar provisions pertaining to building and loan association deposit insurance requirements, § 7-1-797.

RESEARCH REFERENCES

Am. Jur. 2d.

- 11 Am. Jur. 2d, Banks and Financial Institutions, §§ 1086, 1087.

C.J.S.

- 9 C.J.S., Banks and Banking, § 25.

ALR.

- Insurance of bank or trust company against loss by burglary or robbery as covering contents of safety deposit boxes rented to customers, 30 A.L.R. 623.

Liability on bond for security of public funds deposited in banks as affected by form of transaction, or nature or validity of deposit, 65 A.L.R. 798.

Purchaser or holder of draft, cashier's check or certified check as a depositor within statutes relating to guaranty or insurance of deposits or deposit liability, 111 A.L.R. 228.

Circumstances under which federal appellate court will allow Federal Deposit Insurance Corporation (FDIC) or Resolution Trust Corporation (RTC) to raise on appeal issues not raised at trial involving financial institution put in receivership or conservatorship after trial, 120 A.L.R. Fed. 469.

Determination, under 12 USCS § 1821(f), of disputes concerning insured nature of deposits as entitled to Federal Deposit Insurance Protection, 120 A.L.R. Fed. 485.

PART 2 GENERAL POWERS OF BANKS AND TRUST COMPANIES

RESEARCH REFERENCES

ALR.

- Duty of bank when several checks which, in the aggregate, exceed the depositor's balance, are presented at the same time, 26 A.L.R. 1486; 66 A.L.R. 404; 109 A.L.R. 858; 114 A.L.R. 518.

Liability of bank for loss of liberty bonds and war savings stamps, 40 A.L.R. 899.

Right of savings bank to liquidate voluntarily and close business, 69 A.L.R. 1255.

Liability for interest or profits on funds of estate deposited in bank or trust company which is itself executor, administrator, trustee, or guardian, or in which executor, is interested, 88 A.L.R. 205.

Statute regulating banks and trust companies as special or class legislation, or as denying the equal protection of the laws, 111 A.L.R. 140.


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