Security for Deposits

1. Law
2. Georgia Code
3. Banking and Finance
4. Financial Institutions
5. Banks and Trust Companies
6. Powers of Banks
7. Security for Deposits

1. A bank may pledge or otherwise grant security interests in its assets to secure deposits of:
   1. Public funds;
   2. Funds of a pension fund for employees of a public body of the state;
   3. Funds for which a public body of the state or an officer or employee thereof or any court of law is the custodian or trustee pursuant to statute;
   4. Funds held by the department as receiver;
   5. Funds which are required to be secured by law or by an order of a court;
   6. Its own fiduciary funds or the fiduciary funds of an affiliate. In either case, the funds shall be deposited with the pledging institution and held in its commercial department; and
   7. Public funds deposited in another bank.
2. Except for the deposits listed in subsection (a) of this Code section, a bank may not pledge or otherwise grant security interests in its assets as security for deposits unless otherwise specifically approved in writing by the department.

(Code 1933, § 13-2068, enacted by Ga. L. 1973, p. 526, § 8; Code 1933, § 41A-1310, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1993, p. 929, § 1; Ga. L. 1995, p. 673, § 14; Ga. L. 2016, p. 390, § 7-6/HB 811.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 10 Am. Jur. 2d, Banks and Financial Institutions, §§ 610, 611.

C.J.S.

- 9 C.J.S., Banks and Banking, §§ 222, 223.

ALR.

- Power of bank to pledge assets to secure general depositors, 65 A.L.R. 1412; 87 A.L.R. 1456; 101 A.L.R. 515; 112 A.L.R. 483.

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