Deposits by financial institutions

(a) Subject to the restrictions of subsection (b) of this Code section 204 7-1-371 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. History. Code 1933, § 41A-1701, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1981, p. 1366, § 10; Ga. L. 1997, p. 485, § 14; Ga. L. 2016, p. 390, § 2-4/HB 811.