Section 45-8-13. Deposit of funds in banks or depositories -- Deposit of securities by banks or depositories; contract as to interest or compensation

   (a) Any depository in this state is authorized to give such bond or to secure deposits of public funds by deposits of securities, whether the securities are owned by the depository into which the public funds are deposited or are owned by another bank, and the proper authorities are authorized to make contracts with depositories as to interest or compensation of the depository.

(b) Depositories may secure deposits of public funds using the dedicated method or the pooled method as enumerated in this subsection:

   (1) Under the dedicated method, a depository shall secure the deposits of each of its public depositors separately. It is intended that the dedicated method is the method permitted under Code Section 45-8-12 and that this method will not be affected by this subsection; or

   (2) Under the pooled method, a depository shall secure deposits of public funds of public bodies which have deposits with it through a pool of collateral established by the depository with a custodian for the benefit of public bodies having deposits with such depository as set forth in Code Section 45-8-13.1. If a depository elects the pooled method, it may use the pooled method with some public depositors and the dedicated method with other public depositors.

(c) No depository shall be required to use the pooled method. However, any depository that offers the pooled method shall also offer the dedicated method.

Ga. L. 1933, p. 78, § 6; Code 1933, § 89-812; Ga. L. 1993, p. 929, § 3; Ga. L. 1994, p. 97, § 45; Ga. L. 1997, p. 868, § 2.