(a) As used in this Code section, the term:(1) 'Bank' shall have the same meaning as provided in paragraph (7) of Code Section 7-1-4.(2) 'Department' means the Department of Community Affairs.(3) 'Local government' means any county or municipality of this state.(b) Upon submission of an application by a local government, the department may designate a banking improvement zone within the jurisdiction of such local government for the purpose of encouraging the establishment of branches or representative offices of a bank within an area which is underserved by banking services. Application to establish a banking improvement zone shall be made to the department in such form as shall be prescribed by the department. The department may exercise its discretion in its consideration to approve a local government as eligible for a banking improvement zone; provided, however, that prior to the designation of a banking improvement zone, the department shall make a determination whether any potential gains to a bank from a below rate interest agreement authorized pursuant to subsection (c) of this Code section is ample consideration for a substantial public benefit in compliance with Article tial gains to a bank from a below rate interest agreement authorized pursuant to subsection (c) of this Code section is ample consideration for a substantial public benefit in compliance with Article III, Section VI, Paragraph VI(a) of the Georgia Constitution. Such decision shall also take into consideration:(1) The location, number, and proximity of sites where banking services are available in the proposed banking improvement zone;(2) Consumer needs for banking services in the proposed banking improvement zone;(3) The economic viability and local credit needs of the local government in the proposed banking improvement zone;(4) The existing commercial development in the proposed banking improvement zone; and(5) The impact additional banking services would have on potential economic development in the proposed banking improvement zone.(c) Upon approval of a banking improvement zone, the governing body of a local government may, through ordinance or resolution, designate a bank to be located within a banking improvement zone as the depository for local government funds, provided that applicable standards for deposits of public funds set forth in Chapter 8 of Title 45 have been be located within a banking improvement zone as the depository for local government funds, provided that applicable standards for deposits of public funds set forth in Chapter 8 of Title 45 have been satisfied. Subject to agreement between the governing body of a local government and a bank, such ordinance or resolution shall designate a fixed interest rate that is at or below the posted two-year certificate of deposit rate at the bank.Added by 2020 Ga. Laws 549,§ 1, eff. 1/1/2021.
Georgia Legal Code