Ga. Comp. R. & Regs. R. 80-7-2-.04 - Interpretations

(1) The phrase "deposits subject to check or draft" as used in O.C.G.A. §§ 7-1-730 through 7-1-734 shall not include deposits withdrawn by wire transfer or by check or draft where the check or draft is payable to the owner of the deposit or an affiliate of the owner and where there are five or fewer checks/drafts in any thirty-day (30) period.

(2) For purposes of distinguishing between "deposits" and "credit balances," the following guidelines shall be applicable:

(a) The maintenance of all credit balances shall be supported by appropriate file memorandum relating to the class of credit balances generally, e.g. compensating loan balances, letter of credit transactions, or to the specific credit balance being maintained and its related exercise of lawful power. Such memorandum shall recite the terms under which the credit balance(s) is maintained, the nature of the transaction out of which the credit balance arose, and the terms under which the credit balance must be terminated.

(b) Access to credit balance accounts (other than by internally generated entry) may be by draft or transfer. Such items should not represent any significant volume relative to the nature of the account and should be two-party items, i.e. the payee should also be either the maker, the international bank, or an affiliate of the maker or international bank.

(3) The phrase "through its parent organization" as used in O.C.G.A. § 7-1-731 includes funds placed with and used internally for the benefit of the parent organization.

Notes

Ga. Comp. R. & Regs. R. 80-7-2-.04

O.C.G.A. § 7-1-61.

Original Rule entitled "Interpretations" adopted. F. Dec. 20, 2024; eff. Jan. 9, 2025.