reglab/statecodes huggingface dataset:
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 2 - GENERAL POWERS OF BANKS AND TRUST COMPANIES (§§ 7-1-260 — 7-1-263) › Section 7-1-262 - Power to hold real estate; prior approval of acquisitions

(a)
A bank or trust company may solely or jointly with other persons or corporations acquire and hold such real property as it:
(1)
Occupies or intends to occupy primarily for the transaction of its business, the business of any subsidiary or affiliate, or the recreational use of its employees or partly so occupies and partly leases;
(2)
Acquires for the purpose of providing parking or other facilities primarily for the use of its tenants, customers, officers, and employees; or
(3)
Acquires with others for the purpose of providing data processing facilities or other support services for the bank or trust company or any subsidiary solely or in cooperation with others,
subject to the limitation that the investment of the bank or trust company in all such real property, in all furniture, fixtures, and equipment acquired in connection with any real property owned or leased by the bank or trust company, in all alterations of buildings on real property owned or leased by the bank or trust company, in all shares of corporations organized for the purpose of holding real estate in the categories described above where the bank or trust company or a subsidiary of the bank or trust company owns 25 percent or more of such shares outstanding, in obligations of or for the benefit of such corporations or loans upon the security of the shares of such corporations or, to the extent of the bank's or trust company's pro rata interest, the security of the real estate itself, and in all real estate, furniture, fixtures, or equipment held beyond the limits specified in Code Section
7-1-263
shall not exceed 60 percent of the statutory capital base of the bank or trust company, or such larger amount as may be approved by the department.
(b)
All acquisitions of real property for purposes authorized above must be accorded prior written approval by the department in advance of the acquisition except to the extent authorized by regulation.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 2 - GENERAL POWERS OF BANKS AND TRUST COMPANIES (§§ 7-1-260 — 7-1-263) › Section 7-1-263 - Property held to avoid loss

A bank or trust company may acquire and hold property for the purpose of avoiding loss as specified in paragraph (8) of Code Section
7-1-261
, subject to:
(1)
A determination by a majority vote of its directors at least once each year as to the advisability of retaining any such property, provided that no such property may be held for more than five years without the prior written approval of the department; and
(2)
Disposition within a period of six months after the date of acquisition or such longer period as the department may approve in writing of shares of its own stock so acquired and of shares of stock of any bank, bank holding company, or trust company held after such acquisition.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-280 - Major banking powers

Subject to restrictions contained in this chapter or in its articles, a bank shall have the power:
(1)
To receive money or commercial paper for deposit and to provide by its rules or by agreement for the terms of withdrawal and interest thereon;
(2)
To act as an agent to collect checks, drafts, and other items of commercial paper and in exercising this power to become a member of a clearing-house and grant security interests in its assets for its qualification therein;
(3)
To lend money and discount or purchase evidence of indebtedness and agreements for the payment of money and to take security title or security interests in real or personal property to secure obligations owing thereunder;
(4)
To service loans made by it or by others whether or not held by the bank;
(5)
To issue, advise, and confirm letters of credit authorizing the beneficiaries thereof to draw upon the bank or its correspondents;
(6)
To receive money for transmission;
(7)
To buy and sell exchange, coin, and bullion; and
(8)
To provide third-party payments services.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-281 - Participation in federal programs

Any bank may:
(1)
Become a member of the Federal Reserve System and conform to the rules and regulations of that system and the federal reserve bank of which it is a member;
(2)
Become an insured bank pursuant to the Federal Deposit Insurance Act and take all action necessary to the maintenance of insured status thereunder;
(3)
Apply for and obtain insurance on loans pursuant to national housing legislation.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-282 - Direct leasing of personal and real property

Notwithstanding any other provision of law to the contrary and subject to such regulations as the department may prescribe, a bank may:
(1)
Become the owner and lessor of personal property acquired upon the specific request and for the use of a customer and may incur such additional obligations as may be incident to becoming an owner and lessor of such property. At the end of any lease, the bank shall, within six months, enter into a new lease with respect to the property or dispose of it. The leasing shall constitute an indebtedness under Code Section
7-1-285
and shall be subject to the lending limitations of such Code section;
(2)
Become the owner and lessor of certain public real property and facilities. A bank may purchase or construct a municipal building, school building, or other similar state, local, or other governmental authority facility if, as holder of legal title, such purchase is for the purpose of leasing the facility to a municipality or other public or governmental authority which has the authority to enter into such lease, is authorized to levy taxes or is backed by the taxing authority of another political subdivision, and has the resources sufficient to make lease payments as they come due. The lease agreement must provide that the lessee will become the owner of the building or facility upon the expiration of the lease; and
(3)
Become the owner and lessor of real property acquired upon the specific request and for the use of a customer or an affiliate thereof and may incur such additional obligations as may be incidental to becoming an owner and lessor of such property. The lessee, or an affiliate thereof, shall be responsible for any and all construction of buildings or other improvements related to such real property. Any lease with respect to such real property shall provide that the lessee thereof shall be responsible for maintaining the property, insuring the property, and paying real estate taxes related to the property. At the end of any lease, the bank shall, within six months, enter into a new lease with respect to the property or dispose of it. The leasing shall be subject to credit approval by the bank in a manner substantially similar to a loan and shall constitute an indebtedness under Code Section
7-1-285
and shall be subject to the lending limitations of such Code section. The assignment of any purchase contract, or the right to purchase real property thereunder, by the lessee or an affiliate thereof to the bank shall not affect the entitlement of any real estate broker to any real estate brokerage commissions owing upon the sale of such real property.
Amended by 2004 Ga. Laws 517, § 3, eff. 7/1/2004.
Amended by 2001 Ga. Laws 2, § 7,,eff. 2/12/2001,
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-283 - Participations

(a)
A bank may purchase and may sell participations in:
(1)
One or more evidences of indebtedness or agreements for the payment of money, subject to regulations by the department; or
(2)
Pools of evidences of indebtedness or agreements for the payment of money, subject to regulations by the department.
(b)
The department may prohibit the sale of any type of participation to the public or otherwise not in the usual course of banking business, except as permitted by other provisions of this chapter.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-284 - Acceptances

(a)
A bank may accept drafts upon it having not more than nine months' sight to run arising out of transactions involving:
(1)
The import or export of goods;
(2)
The domestic shipment of goods, if secured by documents of title covering such goods; or
(3)
The storage of readily marketable staples, if secured by documents of title covering such staples.
(b)
The aggregate amount of acceptances under subsection (a) of this Code section shall not at any time exceed, for all such acceptances on behalf of one customer, 15 percent of the statutory capital base of the bank, exclusive of any acceptance secured by documents of title or other security growing out of the same transaction as the acceptance.
(c)
In addition, a bank may, with the prior approval of the department, accept drafts having not more than three months' sight to run drawn upon it by banking institutions or bankers in foreign countries or in dependencies or insular possessions of the United States for the purpose of creating dollar exchange as required in an aggregate amount which shall not at any time exceed:
(1)
For all such acceptances on behalf of a single banking institution or banker, 10 percent of the statutory capital base;
(2)
For all such acceptances, 50 percent of the statutory capital base, provided that the department may, by regulation, impose additional restrictions on the acceptance of drafts under this subsection.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-287 - Dealings in securities; conflicts of interest; divestiture and fines

Notwithstanding the limitations of Code Section
7-1-288
, a bank may purchase, sell, underwrite, and hold securities which are obligations in the form of bonds, notes, or debentures or mutual funds, investment trusts, or pools primarily consisting of such bonds, notes, or debentures, and may purchase, sell, and hold corporate debt obligations, to the extent authorized by regulations of the department. The department may issue regulations which prescribe operating restrictions and standards of conduct dealing with potential conflicts of interest and shall prescribe rules for divestiture of securities held in violation of such regulations and fines for violations not to exceed $10,000.00 per day during which each violation remains uncorrected. A bank may hold without limit securities which are obligations of the United States or obligations which are guaranteed fully as to principal and interest by the United States or general obligations of any state.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-289 - Security for deposits

(a)
A bank may pledge or otherwise grant security interests in its assets to secure deposits of:
(1)
Public funds;
(2)
Funds of a pension fund for employees of a public body of the state;
(3)
Funds for which a public body of the state or an officer or employee thereof or any court of law is the custodian or trustee pursuant to statute;
(4)
Funds held by the department as receiver;
(5)
Funds which are required to be secured by law or by an order of a court;
(6)
Its own fiduciary funds or the fiduciary funds of an affiliate. In either case, the funds shall be deposited with the pledging institution and held in its commercial department; and
(7)
Public funds deposited in another bank.
(b)
Except for the deposits listed in subsection (a) of this Code section, a bank may not pledge or otherwise grant security interests in its assets as security for deposits unless otherwise specifically approved in writing by the department.
Amended by 2016 Ga. Laws 450,§ 7-6, eff. 7/1/2016.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-290 - Powers as surety or guarantor

(a)
Except as authorized in subsection (b) of this Code section, in paragraph (10) of Code Section
7-1-260
, and in paragraph (4) of Code Section
7-1-261
, a bank shall not lend its credit, bind itself as a surety to indemnify another, or otherwise become a guarantor.
(b)
A bank may act as a surety or guarantor if it has a substantial interest in the performance of the transaction involved or has a segregated deposit sufficient in amount to cover the institution's potential liability.
(c)
Nothing in this Code section shall be construed to prohibit banks from:
(1)
Giving warranties or guaranties in connection with the handling of items for collection; the transfer, exchange, or collection of securities; or the sale or disposition of its assets;
(2)
Issuing letters of credit; and
(3)
Pledging or otherwise granting security interests in their assets to secure public funds deposited in the bank or another bank, including, but not limited to, deposits made pursuant to a pledging pool.
(d)
Notwithstanding other provisions of law to the contrary, irrevocable letters of credit issued by banks domiciled in this state may, in the discretion of the party in whose favor such irrevocable letter of credit is issued, be accepted in lieu of any bond, surety, or pledge of assets required by the laws of this state or regulations promulgated pursuant to such laws.
Amended by 2016 Ga. Laws 450,§ 2-3, eff. 7/1/2016.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-291 - Borrowings; liabilities not subject to restrictions; restrictions; borrowing for emergencies

(a)
Subject to the restrictions of subsection (c) of this Code section, a bank may borrow money and issue notes, debentures, or other obligations to evidence such borrowings.
(b)
The following outstanding liabilities are not subject to the restrictions in this Code section:
(1)
Liabilities to a federal reserve bank on account of money borrowed or rediscounts;
(2)
Liabilities on account of the acquisition of reserve balances at a federal reserve bank or other reserve agent from a member or a nonmember bank;
(3)
Liabilities on account of agreements to repurchase securities sold by the bank (commonly known as "repurchase agreements");
(4)
Liabilities in the form of subordinated securities under Code Section
7-1-419
; and
(5)
Liabilities which do not constitute or result from the borrowing of money under definitions prescribed by regulation of the department.
(c)
A bank that wishes to borrow from sources other than those listed in subsection (b) of this Code section may borrow an aggregate amount which exceeds the sum of twice its unimpaired capital stock plus 100 percent of its unimpaired paid-in capital and retained earnings, provided that the bank's board of directors has approved a comprehensive written funding plan that addresses the following safety and soundness concerns:
(1)
The plan must contain a detailed evaluation of the bank's management expertise and information systems to support the plan; and
(2)
The plan must contain adequate asset and liability, liquidity, and funds management policies and procedures to specifically address the use of borrowings as an alternate funding source.
(d)
The department may, notwithstanding the other provisions of this Code section, temporarily waive the requirements of this Code section to permit an individual bank to borrow for emergency purposes. The department shall review the funding plan of each bank as a part of its normal supervisory program. The department may prohibit or place additional restrictions upon borrowings of any bank which would, in the judgment of the department, constitute an unsafe or unsound practice in view of the condition and circumstances of the bank.
Amended by 2020 Ga. Laws 521,§ 7, eff. 7/29/2020.
Amended by 2019 Ga. Laws 270,§ 5, eff. 7/1/2019.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-292 - Interest and fees

Any bank may take, receive, reserve, and charge interest and fees on any loan, advance of money, or forbearance to enforce the collection of money at rates not exceeding the limits set by the laws of this state. Whenever such laws authorize a special interest or fee rate with respect to a designated type of loan, then a bank may charge that special interest or fee on loans of that type made by it. Whenever such laws authorize a person or a corporation other than a bank to charge a special interest or fee rate with respect to a designated type of loan, then a bank may charge such rate or fee on loans made by it which would qualify as the designated type of loan if made by the person or corporation so authorized without any requirement for the bank to obtain any license, qualification, or permit.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-294 - Transaction of business on holidays and outside of banking hours

(a)
Notwithstanding any existing provisions of law relative to the time of maturity or presentment of negotiable instruments, any financial institution doing business in this state may, at its option, outside of regular banking hours on any day, or at any time on a day which is in whole or in part a holiday, pay, certify, or accept negotiable or nonnegotiable instruments including a demand instrument dated on the holiday on which it is presented for payment, certification, or acceptance and transact any other business which would be valid if done on a business day during regular banking hours.
(b)
Nothing in this Code section shall require any financial institution which remains open for business on all or a part of any holiday to do or perform any act on that day in its capacity as a collection agent which would not be required of it if it were closed on such holiday or part holiday.
Amended by 2017 Ga. Laws 57,§ 7, eff. 6/1/2017.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 3 - POWERS OF BANKS (§§ 7-1-280 — 7-1-296) › Section 7-1-295 - Transaction fees charged by operators of automated teller machines

An operator of an automated teller machine in this state may charge a transaction fee to the customer using the machine. An agreement to share automated teller machines may not prohibit, limit, or restrict the right to charge such transaction fees and no such agreement may prohibit, limit, or restrict the right of one or more financial institutions to enter into an agreement not to charge such transaction fees to their common customers.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4 - POWERS OF TRUST COMPANIES (§§ 7-1-310 — 7-1-318) › Section 7-1-310 - Powers to act as fiduciary and in other representative capacities

(a)
A trust company may act, alone or with others, as:
(1)
Fiduciary;
(2)
Investment advisor;
(3)
Custodian of property;
(4)
Agent or attorney in fact;
(5)
Registrar or transfer agent of securities;
(6)
Fiscal agent of the United States, a state or a public body thereof, a corporation, or a person; and
(7)
Treasurer of a public body or of a nonprofit corporation.
(b)
A trust company shall have, in respect to any capacity in which it may act pursuant to a power under subsection (a) of this Code section, all the rights and duties which a person has in such capacity under applicable laws and under the terms upon which the trust company is designated to act in such capacity.
(c)
Every bank and credit union operating pursuant to this chapter shall possess all of the rights, privileges, powers, and responsibilities herein conferred upon trust companies; provided, however, that no such bank or credit union shall exercise such powers and privileges without the prior written approval of the department after a careful consideration of the factors enumerated in Code Section
7-1-394
, relating to the chartering of trust companies. Any bank exercising or partially exercising trust powers prior to February 27, 1976, authorized by its articles may continue to exercise or partially to exercise those powers to the extent approved by the department without the necessity of obtaining a new approval.
(d)
Notwithstanding any other provisions of this chapter to the contrary, any bank, credit union, or trust company which does not exercise trust powers as provided in this chapter, whether or not such powers have been incorporated into its articles, may, with the consent of the department, contract with any bank, credit union, or trust company exercising trust powers to provide for the latter bank, credit union, or trust company to offer trust services through the branches and offices of the former bank, credit union, or trust company.
Amended by 2023 Ga. Laws 348,§ 5, eff. 7/1/2023.
Amended by 2016 Ga. Laws 450,§ 7-4, eff. 7/1/2016.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4 - POWERS OF TRUST COMPANIES (§§ 7-1-310 — 7-1-318) › Section 7-1-311 - Operations as a fiduciary

Except as otherwise permitted by Code Section
7-1-315
, a trust company in its capacity as fiduciary shall:
(1)
Segregate all property (other than items in the course of collection) held as a fiduciary from its nonfiduciary assets and keep separate records of all such fiduciary property for each account for which such property is held;
(2)
Hold property held as fiduciary in a form complying with applicable law;
(3)
Keep fiduciary funds awaiting investment or distribution in deposits in an authorized financial institution (including, in the case of a trust company which is also a bank, its own commercial department or the commercial department of an affiliate as provided in Code Section
7-1-289
) which is insured or, to the extent of any deficiencies in insurance coverage, fully secured by a pledge or assignment of bonds or obligations of the United States, this state, or a public body of either or other obligations guaranteed as to principal and interest by the United States, this state, or a public body of either or real estate loans secured by a first lien or security title to improved realty and insured pursuant to any title of the National Housing Act. The beneficial owners of such uninvested funds shall have a first and prior lien on such security;
(4)
Not be required to execute a bond or give any security required by the law of fiduciaries but may give its own bond and pledge or otherwise grant security interests in its assets as security for the faithful performance of its duties as fiduciary or as surety for such faithful performance by any cofiduciary where such is requested or otherwise required; and
(5)
Provide any oath or affirmation or any affidavit required of the trust company through an officer thereof acting on behalf of the trust company.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4 - POWERS OF TRUST COMPANIES (§§ 7-1-310 — 7-1-318) › Section 7-1-312 - Nonfiduciary investments

A trust company which is not a bank may, apart from its fiduciary activities, invest in stock and investment securities, except that it may not acquire or hold its own stock otherwise than pursuant to paragraphs (8) and (9) of Code Section
7-1-261
.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4 - POWERS OF TRUST COMPANIES (§§ 7-1-310 — 7-1-318) › Section 7-1-314 - Purchase in fiduciary capacity of securities underwritten by syndicate including institution

A trust company or a financial institution with fiduciary powers may, in its fiduciary capacity, purchase securities underwritten by a syndicate which includes the financial institution or an affiliate of the financial institution, provided such purchase is otherwise prudent, not prohibited by the instrument governing the fiduciary relationship, and not otherwise inconsistent with regulations issued by the department.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4 - POWERS OF TRUST COMPANIES (§§ 7-1-310 — 7-1-318) › Section 7-1-315 - Satisfaction of fiduciary obligations respecting investment of funds awaiting investment or distribution and charging of fees

(a)
A trust company complying with this Code section will be deemed to have satisfied its fiduciary obligations and duties with respect to:
(1)
The investment of fiduciary funds awaiting investment or distribution;
(2)
The charging of fees in connection therewith; and
(3)
The disclosure of policies, procedures, and fees in connection therewith.
(b)
A trust company may invest fiduciary funds awaiting investment or distribution in short-term, trust-quality investment vehicles, through the medium of a collective investment fund or otherwise. A trust company may also place fiduciary funds awaiting investment or distribution in deposits of the commercial department of such trust company, in the case of a trust company which is also a bank, or in deposits of an affiliate bank; provided, however, that the rate of interest paid on such deposits shall be at least equal to the rate paid by such department or affiliate bank on deposits of similar terms and amounts. A fiduciary shall have complied with this Code section if cash awaiting investment or distribution in excess of $1,000.00 is invested or deposited within 30 days of receipt or accumulation thereof. The provisions of this subsection shall apply notwithstanding any other law or rule restricting or limiting the investments of fiduciaries.
(c)
In addition to any other compensation to which it may be entitled, a trust company may, without necessity of obtaining the approval of any person or court, charge a reasonable fee for the temporary investment of fiduciary funds awaiting investment or distribution, which fee may be calculated upon the amount of such funds actually invested and upon the income produced thereby.
(d)
A trust company shall have complied with its duty to disclose fees and practices in connection with the investment of fiduciary funds awaiting investment or distribution if the trust company's periodic statements set forth the trust company's practice and method of computing fees.
(e)
This Code section shall be construed as a codification of existing law concerning the fiduciary duties of trust companies and not as a change in such law.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4 - POWERS OF TRUST COMPANIES (§§ 7-1-310 — 7-1-318) › Section 7-1-316 - Irrevocable letter of credit or pledge of securities for receivership contingency

(a)
(1)
A trust company shall provide an irrevocable letter of credit or pledge securities acceptable to the department to defray the costs of a liquidation of the trust company in the event it should be placed into receivership.
(2)
The amount of the securities or the letter of credit required in this Code section shall be determined by the department as appropriate to defray the costs associated with receivership, provided that such amount shall be no less than $500,000.00.
(3)
Any letter of credit shall be:
(A)
Made payable to the department and issued by a Federal Home Loan Bank or a federally insured financial institution, approved by the department and authorized to do business in this state;
(B)
In a form and with terms acceptable by the department; and
(C)
Obtained from an entity in which the trust company has no financial interest.
(4)
Any pledged securities shall be held at a bank authorized to do business in this state, and any fees associated with holding such securities shall be the responsibility of the trust company.
(b)
If a trust company is placed in receivership, the department may, without regard to any priorities, preferences, or adverse claims, reduce the pledged securities or the letter of credit provided by a trust company to cash and, as soon as practicable, utilize the cash to defray the costs associated with receivership.
Added by 2017 Ga. Laws 57,§ 8, eff. 6/1/2017.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4 - POWERS OF TRUST COMPANIES (§§ 7-1-310 — 7-1-318) › Section 7-1-317 - Minimal amount of capital

(a)
The department may require, based on safety and soundness, that a trust company maintain a minimum amount of capital, provided that such amount shall in no event be less than $3 million. The department may alter the amount of capital required to be maintained by a trust company from time to time as may be necessary for the safe and sound operation of such trust company.
(b)
The department may consider the following in establishing the minimum amount of capital:
(1)
The nature and type of business to be conducted;
(2)
The nature and liquidity of assets to be held;
(3)
The amount of fiduciary assets to be under management of the trust company;
(4)
The type of fiduciary assets to be held and the depository for such assets;
(5)
The complexity of fiduciary duties and degree of discretion to be undertaken;
(6)
The competence and experience of management;
(7)
The extent and adequacy of internal controls;
(8)
The presence or absence of annual unqualified audits by an independent certified public accountant;
(9)
The reasonableness of business plans for retaining or acquiring additional equity capital;
(10)
The existence and adequacy of insurance to protect the clients, beneficiaries, and grantors of the trust company;
(11)
Any history of operating losses;
(12)
Any history of loss in relation to fiduciary or custodial accounts; and
(13)
The amount of support from the trust company's parent or affiliate.
Added by 2017 Ga. Laws 57,§ 8, eff. 6/1/2017.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4 - POWERS OF TRUST COMPANIES (§§ 7-1-310 — 7-1-318) › Section 7-1-318 - Prohibition on pledging or creating a lien by trust companies; void actions

(a)
No trust company shall pledge or create a lien on any of its assets except to secure:
(1)
The repayment of money borrowed; or
(2)
Trust accounts administered by the trust company.
(b)
An act, deed, conveyance, pledge, or contract in violation of this Code section shall be considered void.
Added by 2017 Ga. Laws 57,§ 8, eff. 6/1/2017.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4A - AFFILIATE TRANSFERS (§§ 7-1-320 — 7-1-325) › Section 7-1-320 - Definitions

As used in this part, the term:
(1)
"Affiliate transfer" means a transfer by which a bank or trust company delegates, assigns, or transfers to an affiliated trust company or to an affiliated bank which has received the required approvals from the appropriate regulatory authorities to exercise trust powers all of its rights, powers, privileges, accounts, and designations with respect to one or more of its various capacities as fiduciary.
(2)
"Affiliated trust company" means a trust company which is affiliated with a bank. A trust company shall be considered an affiliate with a bank in accordance with the definition of such term set forth in paragraph (1) of Code Section
7-1-4
. Such term shall also include an affiliated bank which has received the required approvals from the appropriate regulatory authorities to exercise trust powers.
(3)
"Bank" means a corporation as defined in either paragraph (7) or (23) of Code Section
7-1-4
and having its principal place of business in Georgia.
(4)
"Fiduciary" means a bank or trust company acting in such capacity as set forth in paragraph (20) of Code Section
7-1-4
or as further defined by regulations of the department.
(5)
"Trust company" means a corporation as defined in paragraph (40) of Code Section
7-1-4
or a national bank having:
(A)
Authority to conduct business only to the extent of its trust powers as provided in
12 U.S.C. Section 92a
; and
(B)
A principal place of business in Georgia.
Amended by 2024 Ga. Laws 701,§ 1, eff. 7/1/2024.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4A - AFFILIATE TRANSFERS (§§ 7-1-320 — 7-1-325) › Section 7-1-321 - Affiliate transfers authorized; powers and duties of affiliated trust company transferees

(a)
Any bank authorized by law to engage in the business of acting as a fiduciary is authorized and empowered to make an affiliate transfer whether or not each governing instrument expressly provides for or contemplates an affiliate transfer or whether or not the fiduciary capacity was created by will, indenture, trust, court order, agreement, or other means. No affiliate transfer shall constitute:
(1)
A resignation or disqualification of the bank as fiduciary; or
(2)
A relinquishment of trust powers by the bank making the affiliate transfer.
Upon execution of an instrument effecting an affiliate transfer by a bank, the affiliated trust company shall, as of the date specified in the instrument, have all of the rights, powers, privileges, appointments, accounts, and designations of the bank regarding each fiduciary capacity so transferred and shall have title to all property, real, personal, and mixed, and all debts due on whatever account, and all other choses in action, and each and every other interest of or belonging to or due to the bank as fiduciary shall be taken and deemed to be transferred to and vested in the affiliated trust company as fiduciary without further act or deed. The affiliated trust company shall file a certificate of transfer with the department setting forth its name, a copy of its governing instrument, a list of the banks with which it is affiliated, a statement of the facts which establish the affiliate relationship, and such other information as may be appropriate.
(b)
Upon an affiliate transfer by a bank, the affiliated trust company, in each fiduciary capacity transferred, shall thenceforth be responsible for the performance of all of the duties, responsibilities, and obligations of the bank in such fiduciary capacity, and any claim existing or action or proceeding pending by or against the fiduciary may be prosecuted as if the affiliate transfer had not taken place and the affiliated trust company, as fiduciary, may be substituted in place of the bank, as fiduciary. Neither the rights of creditors to nor any liens upon the property held in any fiduciary capacity shall be impaired by any affiliate transfer.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4A - AFFILIATE TRANSFERS (§§ 7-1-320 — 7-1-325) › Section 7-1-322 - Effect of affiliate transfer on bank; abandonment of transfer; substituted fiduciary

(a)
Notwithstanding the provisions of Code Section
7-1-321
, no affiliate transfer shall relieve the bank of any liability with respect to any of its acts and doings as fiduciary, and the bank shall remain liable and responsible to all affiliate transfer beneficiaries and other parties at interest with respect to all actions of the affiliated trust company as if performed by the bank itself.
(b)
The bank shall be relieved of any claims, liabilities, or actions arising after the affiliate transfer where such affiliate transfer is expressly authorized by the terms of the instrument governing the fiduciary capacity.
(c)
Upon application by an interested party, the bank shall within 30 days either abandon the affiliate transfer subject to such application or proceed to have a successor fiduciary appointed as provided by law.
(d)
Nothing in this Code section shall be construed to impair any right of the grantor or beneficiaries of any fiduciary relationship under applicable instruments or otherwise to secure or provide for the appointment of a substituted fiduciary.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4A - AFFILIATE TRANSFERS (§§ 7-1-320 — 7-1-325) › Section 7-1-323 - Appointment of affiliated trust company as agent for bank; liability of bank for actions of agent

In addition to and not in limitation of the other powers provided in this part, any bank shall be entitled and empowered to designate an affiliated trust company as its agent for the performance of all acts, obligations, and responsibilities of the bank with respect to any fiduciary capacity. In such event, the bank shall remain fully responsible and liable with respect to all actions of the affiliated trust company as if performed by the bank itself. No such agency relationship shall:
(1)
Be deemed an impermissible delegation of responsibility or duty by the bank; or
(2)
Constitute a resignation or disqualification of the bank as fiduciary or a relinquishment of trust powers by the bank.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4A - AFFILIATE TRANSFERS (§§ 7-1-320 — 7-1-325) › Section 7-1-324 - Designation of affiliate trust company as successor fiduciary

Upon any affiliate transfer, the affiliate trust company may be designated in any deed, trust, agreement, filing, instrument, notice, certificate, pleading, or other document as successor fiduciary pursuant to this part.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 4A - AFFILIATE TRANSFERS (§§ 7-1-320 — 7-1-325) › Section 7-1-325 - Other banking laws unaffected by part

Except as expressly provided, nothing in this part shall be construed to amend or modify in any way the laws of the State of Georgia with respect to the establishment of banks, trust companies, branch banks, or bank holding companies or the conduct of the banking business or any part thereof.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 5 - FIDUCIARY INVESTMENT COMPANIES (§§ 7-1-330 — 7-1-338) › Section 7-1-330 - Definitions

As used in this part, the term:
(1)
"Fiduciary investment company" means a corporation which is an investment company as defined by the act of Congress entitled "Investment Company Act of 1940" and is incorporated in accordance with Chapter 2 of Title 14 so as to constitute a medium for the investment of funds held by trust institutions and foreign trust institutions in a fiduciary capacity, either alone or with one or more cofiduciaries.
(2)
"Foreign trust institution" means any state banking institution or trust company organized under the laws of any state other than Georgia or any national banking association incorporated under the laws of the United States and having its principal office in some state other than Georgia which has trust powers and is authorized to act in a fiduciary capacity under the laws under which it was incorporated.
(3)
"Investment adviser" of a fiduciary investment company means:
(A)
Any trust institution which, pursuant to contract with a fiduciary investment company possessing the qualifications provided by this part, regularly furnishes advice to such investment company with respect to the desirability of investing in, purchasing, or selling securities or other property or is empowered to determine what securities or other property shall be purchased or sold by such investment company; and
(B)
Any person or corporation other than a trust institution, who, pursuant to contract with such trust institution, regularly performs substantially all of such duties undertaken by such trust institution.
(4)
"Trust institution" means any trust company or any national bank with its principal office located in this state, authorized to act as a fiduciary.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 5 - FIDUCIARY INVESTMENT COMPANIES (§§ 7-1-330 — 7-1-338) › Section 7-1-331 - Organization; approval by department

Any one or more trust institutions may cause a fiduciary investment company or companies to be organized and incorporated, but no trust institution or foreign trust institution may own an interest in more than seven fiduciary investment companies. A fiduciary investment company shall not begin business, except to select an investment adviser, until it is approved by the department.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 5 - FIDUCIARY INVESTMENT COMPANIES (§§ 7-1-330 — 7-1-338) › Section 7-1-332 - Incorporation

Any such fiduciary investment company shall be incorporated under and subject to Chapter 2 of Title 14. The incorporators shall be persons who are officers or directors of the trust institution or institutions causing such fiduciary investment company to be incorporated; and the articles of incorporation shall set forth the name of each trust institution participating in such incorporation and the amount of stock originally subscribed for by each, together with such other facts as are required by Chapter 2 of Title 14.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 5 - FIDUCIARY INVESTMENT COMPANIES (§§ 7-1-330 — 7-1-338) › Section 7-1-333 - Limitations on investments

Trust institutions and foreign trust institutions, as defined by this part, acting in a fiduciary capacity and for fiduciary purposes, if exercising due care as a prudent investor, and with the consent of any cofiduciary, may invest and reinvest funds held in such fiduciary capacity in the shares of stock of one or more fiduciary investment companies, except where the will, trust indenture, or other instrument under which such trust institution or foreign trust institution acts prohibits such investment, provided that the fiduciary investment company, by its articles of incorporation issued and granted in conformity with Chapter 2 of Title 14, shall have and possess the corporate powers required by this part and be subject to the limitations set forth by this part; provided, further, that no such trust institution or foreign trust institution shall invest in the stock of a fiduciary investment company on behalf of any estate, trust, or fund administered by such trust institution or foreign trust institution a sum or amount which would result in such estate, trust, or fund having a total investment in such stock in excess of the maximum amount or percentage that might be invested by such estate, trust, or fund, under the regulations of the department in effect at the time of such investment, in any common trust fund having total assets equal to the total assets of the fiduciary investment company as increased by the proposed investment; and no trust institution or foreign trust institution shall invest in the stock of a fiduciary investment company if, immediately after such investment and as a consequence thereof, it would own more than 25 percent of the voting securities of such fiduciary investment company which would then be outstanding.
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 2 - BANKS AND TRUST COMPANIES (§§ 7-1-240 — 7-1-628.15) › Part 5 - FIDUCIARY INVESTMENT COMPANIES (§§ 7-1-330 — 7-1-338) › Section 7-1-335 - Rules and regulations; examinations

Without limitation on the authority conferred by Article 1 of this chapter, the department shall have authority to adopt and issue reasonable and uniform rules and regulations to govern the conduct and management of all fiduciary investment companies. The department shall not examine fiduciary investment companies subject to regular examination by the comptroller of the currency of the United States or the Board of Governors of the Federal Reserve System but shall otherwise have full power to examine fiduciary investment companies and enforce laws concerning them as though they were financial institutions.