Funds received or held in the trust department of the bank or by a trust company awaiting investment or distribution must be secured to the trust department or trust company if these funds have been deposited in its own bank, in any of its affiliate banks, or in any other banking corporation by: (1) furnishing an indemnity bond in a responsible surety company authorized to do business in this State; or (2) pledging as collateral: (a) obligations of the United States; (b) obligations fully guaranteed both as to principal and interest by the United States; (c) general obligations of this State or a political subdivision of this State; or (d) obligations of the Federal National Mortgage Association, the Federal Home Loan Banks, Federal Farm Credit Banks, or the Federal Home Loan Mortgage Corporation; or (3) providing an irrevocable letter of credit issued by the Federal National Mortgage Association, the Federal Home Loan Banks, Federal Farm Credit Banks, or the Federal Home Loan Mortgage Corporation, in which the letter of credit otherwise meets any criteria established and prescribed by the State Treasurer for public funds. ederal Farm Credit Banks, or the Federal Home Loan Mortgage Corporation, in which the letter of credit otherwise meets any criteria established and prescribed by the State Treasurer for public funds. HISTORY: 1962 Code Section 8-583; 1952 Code Section 8-583; 1942 Code Section 7907; 1932 Code Section 7907; 1930 (36) 1367; 1991 Act No. 156, Section 1, eff June 12, 1991; 2006 Act No. 308, Section 1, eff upon approval (became law without the Governor's signature on June 1, 2006).
South Carolina Legal Code