§ 115D-58.7. Selection of depository; deposits to be secured. - North Carolina Statutes

§ 115D‑58.7. Selection of depository; deposits to be secured.

(a)        Each board of trustees shall designate as the official depositories of the institution one or more banks, savings and loanassociations or trust companies in this State. It shall be unlawful for anymoney belonging to an institution, other than moneys required  to be depositedwith the State Treasurer, to be deposited in any place, bank, savings and loanassociations, or trust company other than an official depository except aspermitted in G.S. 115D‑58.6(b).  However, public moneys may be depositedin official depositories in Negotiable Order of Withdrawal (NOW) accounts wherepermitted by applicable federal or State regulations.

(b)        Money deposited in an official depository or deposited atinterest pursuant to G.S. 115D‑58.6(b) shall be secured in the manner prescribed in G.S. 159‑31(b). When deposits are secured in accordancewith this subsection, no public officer or employee may be held liable for anylosses sustained by an institution because of the default or insolvency of thedepository. (1981, c. 157, s.1; c. 612, s. 1.)