Title 7, Chapter 1, Section 370
( 7-1-370)
(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 bank 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 or equivalent to deposit
insurance provided by a federal public body to depositories of the
type involved. (b) If a director of the bank 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. |