Section 7-1-370 - Deposits by financial institutions(a) Subject to the restrictions of subsection (b) of this Code section and of Code Section 7-1-371 in regard to reserve funds, a financial institution may deposit its funds in any depository which is: (1) Selected by, or in any manner authorized by, its directors;(2) Authorized by law to receive deposits; and(3) In the case of a depository located in the United States, one which has deposit insurance issued by a federal public body to depositories of the type involved.(b) If a director of the financial institution has a relationship to a depository as either: (1) An officer or director; or(2) An owner of 5 percent or more of the shares of the depository, the depository shall be approved by a majority of the directors other than the director who has such relationship.
Amended by 2016 Ga. Laws 450,§ 2-4, eff. 7/1/2016.