2023 CODE OF GEORGIA › Title 7 - BANKING AND FINANCE (§§ 7-1-1 — 7-9-13) › Chapter 1 - FINANCIAL INSTITUTIONS (§§ 7-1-1 — 7-1-1138) › Article 14 - FOREIGN BANKING INSTITUTIONS (§§ 7-1-1100 — 7-1-1138) › Part 2 - LICENSING (§§ 7-1-1111 — 7-1-1130) › Section 7-1-1124 - Asset maintenance

(a)
The department may require a foreign bank to hold certain assets in this state.
(b)
If the department requires asset maintenance, the amount of assets held by a foreign bank shall be prescribed by the department after consideration of the aggregate amount of liabilities of the Georgia state branch or Georgia state agency, payable at or through the Georgia state branch or Georgia state agency. To determine the aggregate amount of liabilities for purposes of this subsection, the foreign bank shall include bankers' acceptances, but exclude liabilities to the head office and any other branches, offices, agencies, subsidiaries, and affiliates of the foreign bank.
(c)
In determining compliance with the asset maintenance requirements, the department shall give the Georgia state branch or Georgia state agency credit for:
(1)
Assets pledged pursuant to Code Section
7-1-1123
; and
(2)
Reserves required to be maintained by the Georgia state branch or Georgia state agency pursuant to
12 U.S.C. Section 3105(a)
.
(d)
In determining eligible assets for purposes of this Code section, the Georgia state branch or Georgia state agency shall exclude:
(1)
Any amount due from the head office or any other branch, office, agency, subsidiary, or affiliate of the foreign bank;
(2)
Any classified asset;
(3)
Any asset that, in the determination of the department, is not supported by sufficient credit information;
(4)
Any deposit with a bank in the United States, unless that bank has executed a valid waiver of offset agreement;
(5)
Any asset not in the actual possession of the Georgia state branch or Georgia state agency, unless the branch or agency holds title to the asset and maintains records sufficient to enable independent verification of the ownership of the asset by the branch or agency, as determined at the most recent examination; and
(6)
Any other particular asset or class of assets as provided by the department, based on a case-by-case assessment of the risks associated with the asset.
(e)
In the event the department requires asset maintenance, assets to be held in this state for the purpose of satisfying the ratio of assets to liabilities shall:
(1)
Include:
(A)
Currency, bonds, notes, debentures, drafts, bills of exchange, or other evidences of indebtedness, including loan participation agreements or certificates;
(B)
Other obligations payable in the United States or in United States funds or, with the prior approval of the department, in funds freely convertible into United States funds; and
(C)
Other assets as may be specified by rule or regulation; and
(2)
Exclude obligations of a person for money borrowed to the extent that the total of the obligations of the person exceeds 10 percent of total assets considered for purposes of this Code section.
(f)
For purposes of this Code section, assets shall be valued at the lower of principal amount or market value. The department may determine the value of a nonmarketable security, loan, or other asset or obligation held or owed to the foreign bank or its Georgia state branch or Georgia state agency in this state. If the department cannot determine the value of a nonmarketable asset, such asset shall be excluded from the ratio computation.
(g)
The department may require a foreign bank to deposit the assets required to be held in this state pursuant to this Code section with specific banks in this state designated by the department if, because of the existence or the potential occurrence of unusual and extraordinary circumstances, the department considers it necessary or desirable for the maintenance of a sound financial condition; the protection of depositors, creditors, and the public interest in this state; and the maintenance of public confidence in the business of a Georgia state branch or Georgia state agency.
Added by 2023 Ga. Laws 348,§ 48, eff. 7/1/2023.