No bank may pledge assets as security for deposits, except any bank is authorized to pledge acceptable assets as security for deposits of trust funds deposited by its trust department and of public funds, heretofore or hereafter deposited, by the United States or any agency or governmental instrumentality of the United States or by a state or any political subdivision of a state or any agency or other governmental instrumentality of such subdivision, including any county, municipal corporation, county, city, or other public board of education, including any custodian or treasurer of county, city, or other public school funds, any improvement authority heretofore or hereafter incorporated or any public corporation, including each board, authority, or district heretofore or hereafter organized or created in a state pursuant to authorization or determination by any municipality or municipalities or by any county or counties or the governing body of any one or more thereof. For purposes of this section, banks may only pledge assets to secure deposits of Alabama public entities that are defined as covered public entities or covered public officials under Section 41-14A-2. The word "deposits," as used in this section, means deposits of all kinds, including, without limiting the generality of the foregoing, deposits in savings accounts, deposits in checking accounts, deposits in special trust funds, demand deposits, special deposits, time deposits on which interest is to be paid, and deposits for which a bank has issued its certificates of deposit.
Structure Code of Alabama
Title 5 - Banks and Financial Institutions.
Chapter 5A - Organization and Operation of Banks.
Section 5-5A-1 - Procedure for Incorporation - Application for Permit.
Section 5-5A-2 - Procedure for Incorporation - Notice of Intention to Incorporate.
Section 5-5A-9 - Procedure for Incorporation - Judicial Review.
Section 5-5A-10 - Permit to Transact Business - Required.
Section 5-5A-11 - Permit to Transact Business - Examination; Issuance and Recordation of Permit.
Section 5-5A-12 - Membership in Federal Deposit Insurance Corporation, Etc.
Section 5-5A-13 - Filing Fee; Other Fees.
Section 5-5A-14 - Capital - Minimum Amount Required for Incorporation of Bank.
Section 5-5A-15 - Capital - Increase or Decrease.
Section 5-5A-16 - Issuance of Capital Notes and Debentures.
Section 5-5A-18 - Powers of Banks Generally.
Section 5-5A-20 - Branch Banks; Commercial Affiliates.
Section 5-5A-21 - Surplus; Restriction on Dividends.
Section 5-5A-22 - Limits of Indebtedness.
Section 5-5A-23 - Investments and Loans With Respect to Housing.
Section 5-5A-28 - Pledge of Assets.
Section 5-5A-29 - Security Not Required When Deposits Insured.
Section 5-5A-31 - Liability for Transactions on Legal Holidays.
Section 5-5A-32 - Closing of Banks, etc., Permitted on One Business Day of Each Week.
Section 5-5A-33 - Bank to Pay Checks Drawn on It at Par.
Section 5-5A-36 - Notice Upon Maturity of Certificate of Deposit Issued for More Than 90 Days.
Section 5-5A-37 - Rights of Minors.
Section 5-5A-40 - Disposition of Deposit in Trust for Another Upon Death of Trustee.
Section 5-5A-42 - Adverse Claims to Deposits.
Section 5-5A-43 - Disclosure of Customer Financial Records.
Section 5-5A-44 - Acquisition of Majority of Voting Shares of a Bank; Procedure.
Section 5-5A-45 - Initiation of Run on Banks, Etc.
Section 5-5A-46 - False, etc., Statements, etc., Affecting Financial Standing of Bank.
Section 5-5A-47 - Liability of Directors or Officers; Enforcement Powers of Superintendent.