2021 Georgia Code
Title 45 - Public Officers and Employees
Chapter 8 - Accounting for Public Funds
§ 45-8-18. Investment of Surplus Funds in War Bonds or Other Obligations by Treasurer of Governmental Entity

1. The treasurer of any municipality or county or board of trustees of any independent school district may invest any surplus funds in his hands, or any special funds held or being accumulated for any special purpose, or any funds on hand not required for the operation of the municipality, county, or school district for the current fiscal year. He may invest such funds in war bonds or other valid obligations of the United States government, repayable at face value or better, when such investment is authorized by the mayor and general council, county commission, judge of the probate court, board of trustees, or other authority in charge of the affairs of said municipality, county, or independent school district, provided funds accumulated for any special purpose shall be invested only in securities whose maturity date is prior to the date when such funds shall be needed for said special purposes or which are redeemable prior thereto without penalty or loss of principal.
2. Any bonds or other securities purchased or held pursuant to subsection (a) of this Code section shall be held subject to the same conditions as those attached to the funds from which same were purchased.

(Ga. L. 1943, p. 453, §§ 1, 2.)

- For note discussing and comparing the prudent man rule and the legal list rule in trustee investment, see 15 Mercer L. Rev. 530 (1964).

OPINIONS OF THE ATTORNEY GENERAL

Investment of funds granted to municipalities.

- The General Assembly intended the funds granted to the municipalities to be special funds and did not intend to restrict the funds so as to prohibit their temporary investment so long as the investment does not interfere in any way with the expedient use of the funds for the purpose provided in the Act, and the maturity date of the government obligations does not extend beyond the date when such funds shall be needed for these purposes. 1965-66 Op. Att'y Gen. No. 65-35.

The use of the word "bonds" as used in this section should be construed to include the obligation to repay the principal as well as the obligation to pay any interest or premium; any interest earned by the investment of the funds granted to the municipalities by the state are subject to the same conditions as those attached to the funds from which the bonds were purchased. 1965-66 Op. Att'y Gen. No. 65-35.

RESEARCH REFERENCES

ALR.

- Rights and liabilities of municipality as to interest earned on improvement assessments or other special funds collected or held by it, 143 A.L.R. 1341.