07 LC 34
0942/AP
House
Bill 96 (AS PASSED HOUSE AND SENATE)
By:
Representatives Mills of the
25th,
Floyd of the
147th,
Hill of the
21st,
and Knight of the
126th
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 3 of Chapter 17 of Title 50 of the Official Code of Georgia
Annotated, relating to state depositories, so as to provide for letters of
credit issued by a Federal Home Loan Bank to be accepted to secure state funds
on deposit in state depositories; to provide for related matters; to repeal
conflicting laws; and for other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
3 of Chapter 17 of Title 50 of the Official Code of Georgia Annotated, relating
to state depositories, is amended by revising subsections (b), (c), and (d) of
Code Section 50-17-59, relating to deposit of securities in lieu of bond, to
read as follows: "(b)
The director
may accept letters of credit issued by a Federal Home Loan Bank to secure state
funds on deposit in state depositories.
(b)(c)
The director shall also accept the guarantee or insurance of accounts of the
Federal Deposit Insurance Corporation to secure state funds on deposit in state
depositories, to the extent authorized by federal law governing the Federal
Deposit Insurance Corporation.
(c)(d)
Upon approval by the director, a
A
state depository may secure deposits made with it in part by surety
bond,
and
in part by deposit of any or all of the bonds mentioned in subsection (a) of
this Code section, whether these bonds are owned by the depository or by another
bank, and in
part by letters of credit pursuant to subsection (b) of this Code
section, or by
either
any
such method. The board may determine,
however, that such security will be required only in the case of time deposits
under a contract providing for the payment of interest.
(d)(e)
The director is authorized to contract with any bank, other than the state
depository offering the security, for the purpose of safekeeping the securities
deposited with the director under this provision."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.