Section 610 - Deposits by an institution(a) Depositories--An institution may deposit its funds in a depository which:(i) Is selected by, or in a manner authorized by, the directors or trustees of the institution or by its owners in the case of a private bank without a board of directors, subject to the provisions of subsection (b) of this section, and(ii) If the depository is located in the United States, is authorized by law to receive deposits and is subject to supervision by banking authorities of the United States or of any state.(b) Approval where director or trustee has relationship--If a director or trustee of the institution has a relationship to a depository as either:(i) An officer or director,(ii) An owner if the depository is unincorporated, or(iii) An owner of five percent or more of the capital of the depository if it is incorporated, the depository shall be approved by a majority of the directors or trustees other than the director or trustee who has such relationship.
(c) Amount of deposit--An institution shall not have on deposit in a single depository at any time an amount which is in excess of twenty percent of the aggregate of its surplus, undivided profits and unallocated reserves in the case of a mutual savings bank, in excess of twenty percent of its net worth in the case of a private bank or in excess of twenty percent of its capital, surplus and undivided profits in the case of any other institution, without the approval of the depository for that purpose by the department.1965, Nov. 30, P.L. 847, No. 356, § 610. Amended 1982, April 8, P.L. 262, No. 79, § 9, imd. effective; 1984, July 6, P.L. 606, No. 125, § 4, imd. effective.