GA Code § 7-1-261 (2021)
2021 Georgia Code|Title 7 - Banking and Finance|Chapter 1 - Financial Institutions|Article 2 - Banks and Trust Companies|Part 2 - General Powers of Banks and Trust Companies|§ 7-1-261. Additional Operational Powers

 Banks and trust companies shall, in addition, have the power:    To act as agent of the United States or any public body thereof for the sale or issue of bonds, notes, or other obligations of the United States, or those for which the full faith and credit of the United States is pledged, and to grant security interests in its assets for the faithful performance of its duties as agent;   To receive for safekeeping or to rent out receptacles or safe-deposit boxes for the deposit of papers and other personal property;   To grant security interests in their assets for borrowings authorized by this chapter and to dispose of their assets in the same manner as corporations generally;   To give bond in any proceeding in any court in which they are a party or upon any appeal in any such proceeding and to secure such bond;   To acquire and hold real property to the extent permitted by Code Sections 7-1-262, 7-1-282, and 7-1-286;   To acquire and hold stocks and investment securities subject, in the case of banks, to the restrictions of Code Sections 7-1-287 and 7-1-288 and, in the case of trust institutions, to the restrictions of Code Section 7-1-312;   To acquire and hold personal property necessary in the exercise of powers conferred by this chapter;   To acquire and hold any property in order to avoid loss on an evidence of indebtedness, agreement for the payment of money, or an investment security previously acquired lawfully and in good faith subject to the restrictions of Code Section 7-1-263;   To hold property lawfully held on April 1, 1975, irrespective of any restriction or limitation in this chapter, subject to the inclusion of any such property in any computation of limitation on the acquisition of property of like character under this chapter;   To enter into an agency relationship as defined in Code Section 7-1-4 subject to restrictions and qualifications prescribed by regulations of the department; and   To have and exercise all powers necessary, convenient, or incidental to effect any and all purposes for which the bank or trust company and its subsidiaries and affiliates is organized, provided that the commissioner may establish approval procedures by regulation for additional powers as needed to satisfy the objectives of this chapter. Powers shall include but not be limited to: sale of securities, annuities, and other investment products upon the order of and for the account of its customers, subject to applicable federal or state securities requirements; sale of insurance subject to state insurance laws, regulations, and licensing requirements, applicable federal laws, and departmental regulations and policies; sale or lease of excess computer capacity; expansion of customer services through the use of technology; other powers including those bank and trust powers authorized to subsidiaries of the bank or trust company pursuant to subparagraph (c)(2)(F) of Code Section 7-1-288; and other such powers to carry on banking, trust, or other activities determined by the commissioner to be financial in nature or incident or complementary to such financial activities and consistent with the objectives of this chapter and the regulations of the department.    (Ga. L. 1898, p. 78, § 3; Civil Code 1910, § 2817; Ga. L. 1917, p. 56, § 1; Ga. L. 1919, p. 135, art. 17, § 1; Ga. L. 1920, p. 76, § 1; Code 1933, §§ 13-1801, 109-201; Code 1933, § 13-1802, enacted by Ga. L. 1968, p. 1044, § 1; Code 1933, § 41A-1202, enacted by Ga. L. 1974, p. 705, § 1; Ga. L. 1983, p. 602, § 4; Ga. L. 1989, p. 1249, § 2; Ga. L. 1995, p. 673, § 12; Ga. L. 1996, p. 6, § 7; Ga. L. 1997, p. 485, § 11; Ga. L. 2000, p. 174, § 4.)   Code Commission notes.   - Pursuant to Code Section 28-9-5, in 1997, commas were deleted preceding and following "and its subsidiaries and affiliates" in the first sentence in paragraph (11).   Law reviews.   - For survey article on insurance, see 34 Mercer L. Rev. 177 (1982).   JUDICIAL DECISIONS   Section 33-3-23 and paragraph (10), (now paragraph (11)), must be construed in pari materia.    - O.C.G.A. § 33-3-23 and O.C.G.A. § 7-1-261(10), (now paragraph (11)) were enacted at the same legislative session and relate to the same subject matter - permissible scope of bank's powers - and must, therefore, be construed in pari materia. Department of Banking & Fin. v. Independent Ins. Agents of Ga., Inc., 158 Ga. App. 556, 281 S.E.2d 265 (1981), rev'd on other grounds, 248 Ga. 787, 285 S.E.2d 535 (1982).   Approval of proposed exercises of incidental powers guided by    § 7-1-3(a)(6). - O.C.G.A. § 7-1-261 establishes legislative intent that state banks be authorized to exercise "incidental powers" and delegates authority to approve such powers to the commissioner, who shall be guided in this determination by the statutory objective stated in O.C.G.A. § 7-1-3(a)(6) of making state banks competitive with national banks. Department of Banking & Fin. v. Independent Ins. Agents of Ga., Inc., 158 Ga. App. 556, 281 S.E.2d 265 (1981), rev'd on other grounds, 248 Ga. 787, 285 S.E.2d 535 (1982).    General words following list of particulars are construed to embrace only objects similar in nature to particulars. Independent Ins. Agents of Ga., Inc. v. Department of Banking & Fin., 248 Ga. 787, 285 S.E.2d 535 (1982).    Operation of general insurance agency does not qualify as "incidental power" as it is not convenient or useful in connection with one of the bank's activities established pursuant to the exercise of the bank's express powers. The business of a general insurance agency encompasses selling various types of insurance to the general public. In operating such an agency, a bank would be engaged in an independent, profit-seeking venture unrelated to the bank's express powers. Independent Ins. Agents of Ga., Inc. v. Department of Banking & Fin., 248 Ga. 787, 285 S.E.2d 535 (1982).   OPINIONS OF THE ATTORNEY GENERAL    Sale of data processing equipment and technology services  by bank to other banks is authorized. 1974 Op. Att'y Gen. No. 74-121.    Banking corporations of this state may not make political contributions.  1970 Op. Att'y Gen. No. 70-144.    State trust company may establish foreign branch office  for purpose of developing new international business. 1970 Op. Att'y Gen. No. 70-59.   RESEARCH REFERENCES   Am. Jur. 2d.   - 10 Am. Jur. 2d, Banks and Financial Institutions, § 595 et seq. 19 Am. Jur. 2d, Corporations, §§ 1979 et seq., 2071.   C.J.S.   - 9 C.J.S., Banks and Banking, §§ 222, 223.   ALR.    - Levy upon or garnishment of contents of safety deposit box, 19 A.L.R. 863; 39 A.L.R. 1215.    Insurance of bank or trust company against loss by burglary or robbery as covering contents of safety deposit boxes rented to customers, 30 A.L.R. 623.    Liability for loss of contents of safe-deposit box, 42 A.L.R. 1304; 133 A.L.R. 279.    Power of bank or trust company with respect to assistance of or cooperation with another bank financially embarrassed, 84 A.L.R. 1425.    Trust company's agreement to repay in cash principal of trust fund investment as ultra vires, 96 A.L.R. 453.    Power of bank or trust company to create trust out of its securities and sell participation certificates therein, 97 A.L.R. 1182.    Presumption as to ownership of property in safe deposit box, 101 A.L.R. 832.    Dealings between bank or trust company and itself acting as executor, administrator, or trustee, 112 A.L.R. 780.   Power of savings bank or similar institution to provide checking facilities or negotiable orders of withdrawal (NOW) to customers, 64 A.L.R.3d 1314.