Prohibition on Pledging or Creating a Lien by Trust Companies; Void Actions

  1. Law
  2. Georgia Code
  3. Banking and Finance
  4. Financial Institutions
  5. Banks and Trust Companies
  6. Powers of Trust Companies
  7. Prohibition on Pledging or Creating a Lien by Trust Companies; Void Actions

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  1. No trust company shall pledge or create a lien on any of its assets except to secure:
    1. The repayment of money borrowed; or
    2. Trust accounts administered by the trust company.
  2. An act, deed, conveyance, pledge, or contract in violation of this Code section shall be considered void.

(Code 1981, §7-1-318, enacted by Ga. L. 2017, p. 193, § 8/HB 143.)

RESEARCH REFERENCES

Am. Jur. 2d.

- 10 Am. Jur. 2d, Banks and Financial Institutions, § 23.

PART 4A AFFILIATE TRANSFERS

7-1-320. Definitions.

As used in this part, the term:

  1. "Affiliate transfer" means a transfer by which a bank or trust company delegates, assigns, or transfers to an affiliated trust company or to an affiliated bank which has received the required approvals from the appropriate regulatory authorities to exercise trust powers all of its rights, powers, privileges, accounts, and designations with respect to one or more of its various capacities as fiduciary.
  2. "Affiliated trust company" means a trust company which is affiliated with a bank.A trust company shall be considered an affiliate with a bank in accordance with the definition of such term set forth in paragraph (1) of Code Section 7-1-4. For the purposes of this part, the term affiliated trust company shall also include an affiliated bank which has received the required approvals from the appropriate regulatory authorities to exercise trust powers.
  3. "Bank" means a corporation as defined in either paragraph (7) or (23) of Code Section 7-1-4 and having its principal place of business in Georgia.
  4. "Fiduciary" means a bank or trust company acting in such capacity as set forth in paragraph (20) of Code Section 7-1-4 or as further defined by regulations of the department.
  5. "Trust company" means a corporation as defined in paragraph (40) of Code Section 7-1-4 or a national bank having:
    1. Authority to conduct business only to the extent of its trust powers as provided in 12 U.S.C. Section 92a; and
    2. A principal place of business in Georgia.

(Code 1981, §7-1-320, enacted by Ga. L. 1986, p. 1244, § 1; Ga. L. 1993, p. 915, § 1.)

Law reviews.

- For note on 1993 amendment of this Code section, see 10 Ga. St. U.L. Rev. 9 (1993).


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