Where funds are in the hands of a receiver pending a final disposition, the receiver may deposit the funds into a bank or trust company which is insured by the Federal Deposit Insurance Corporation, Federal Savings and Loan Insurance Corporation, or successor entities. If the receiver fails to utilize such an insured bank or trust company, he shall be personally liable for any resulting loss.
§ 9-8-11.Liability of receiver where bank fails
Chapter 8. Receivers · Last amended 1933 · Last verified July 17, 2026
In one sentenceO.C.G.A. § 9-8-11 lets a Georgia receiver holding funds pending final disposition deposit them in an FDIC- or FSLIC-insured bank or trust company, and if the receiver instead uses an uninsured institution that fails, the receiver bears personal liability for the loss.
Full Text of § 9-8-11
Plain-English Summary
Money that passes through a receiver’s hands has to sit somewhere between collection and final distribution, and this section tells the receiver where it can safely go: a bank or trust company carrying federal deposit insurance, whether through the FDIC, the former Federal Savings and Loan Insurance Corporation, or a successor to either.
The section backs that authorization with a consequence. A receiver who skips an insured institution and instead deposits the funds somewhere uninsured takes on personal liability if that choice leads to a loss — if the bank fails and the deposit isn’t covered, for instance. The receiver, not the parties whose money was lost, bears that cost.
That structure gives receivers a clear incentive: using an insured depository protects the funds and shields the receiver from personal exposure, while cutting that corner shifts the risk of institutional failure onto the receiver individually.
Frequently Asked Questions
Where may a receiver deposit funds under this section?
Into a bank or trust company insured by the FDIC, the Federal Savings and Loan Insurance Corporation, or a successor entity.
What happens if a receiver deposits funds in an uninsured institution that fails?
The receiver is personally liable for any resulting loss.
Does the section require the receiver to use an insured bank?
The section says the receiver may deposit funds in an insured institution, but ties personal liability to a failure to use one, which pushes receivers toward insured depositories.
What kind of funds does this section address?
Funds in the hands of a receiver pending a final disposition of the case.
Does this liability rule apply to losses unrelated to a bank’s failure?
The text ties the liability to the receiver’s failure to utilize an insured bank or trust company, so it is framed around that specific circumstance.
Amendment History
Civil Code 1895, § 4909; Civil Code 1910, § 5484; Code 1933, § 55-310.
Source & verification. Section text and amendment history are
reproduced verbatim from the Official Code of Georgia Annotated, published by the
Official Code of Georgia Annotated, Georgia Code Revision Commission / LexisNexis. Last verified July 17, 2026.
· Official source
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