2006 Georgia Code - 53-12-174

53-12-174. (a) A trustee is not required to give a bond to secure performance of the trustee´s duties unless: (1) The trust instrument requires a bond; or (2) A bond is found by the court to be necessary to protect the interests of beneficiaries or creditors of the trust, even though the trust instrument waives the requirement of a bond. (b) Even though the trust instrument requires a bond, the court may excuse the requirement, reduce or increase the amount of a bond, release a surety, or permit the substitution of another bond with the same or different sureties. (c) The cost of the bond shall be charged against the trust. (d) If a bond is required, it must be payable to the court for the benefit of interested persons as their interests may appear and conditioned on faithful performance of the trustee´s duties, and if imposed by a court, must be in an amount and with sureties and liabilities required by the court. (e) Any other law to the contrary notwithstanding, a national banking association or a bank or trust company organized under the laws of this state that seeks to qualify as a trustee under any trust created under or governed by the laws of this state shall not be required to give bond for the faithful performance of its duties unless its combined capital, surplus, and undivided profits are less than $400,000.00 as reflected in its last statement filed with the comptroller of the currency of the United States or the commissioner of banking and finance or unless the instrument under which it seeks to qualify expressly provides that it shall give bond. (f) Any other law to the contrary notwithstanding, in every case in which the trustee of any trust is required by any law of this state or by the judge of any court of competent jurisdiction to give bond for the faithful performance of the trustee´s duties in such fiduciary capacity, the trustee may give bond in an amount equal to the value of the trust estate if the bond is secured by a licensed commercial surety authorized to transact business in this state. (g) Any other law to the contrary notwithstanding, in every case in which the trustee of any trust is required by any statute of this state or by the judge of any court of competent jurisdiction to give bond for the faithful performance of the trustee´s duties in such fiduciary capacity and the amount of the bond is dependent upon the value of the trust estate, the value of the trust estate for purposes of the bond shall be determined without regard to the value of any real property or improvements thereon held by the trustee in the trustee´s fiduciary capacity. Upon the conversion by any such fiduciary of the real property into personalty, the fiduciary shall give a new bond based upon the value of the estate, including the value of the personalty into which the real property is converted. (h) Failure to comply with this Code section shall not make void or voidable or otherwise affect an act or transaction of a trustee with any third party.

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