Status of Accounts

(1) Correspondent Funds Placed (Sold) shall not be considered to be extensions of credit but shall have the same status as a deposit provided the funds are withdrawable on demand and are unsecured. (2) Correspondent Funds Held (Purchased) shall not constitute borrowings, but shall have the same status as depositors of the financial institution receiving such funds provided the recipient financial institution does not pledge its assets to secure funds and such funds may be withdrawn upon demand. Authority: Ga. L. 1974, pp. 705, 733, 793-795, 801-802. History. Original Rule entitled "Status of Accounts" was filed and effective on June 27, 1975, as Emergency Rule 80-1-13-0.3-.02, to remain in effect for 120 days. Amended: Permanent Rule adopted replacing Emergency Rule 80-1-13-0.3-.02. Filed August 28, 1975; effective September 17, 1975. Amended: Rule repealed and a new Rule of the same title adopted. Filed July 13, 1981; effective August 2, 1981.