§ 29-2-403. UNLAWFUL DEPOSIT OF PUBLIC FUNDS.

(a)

Deposit prohibited. A county official who is responsible for accounting for, investing, or managing public funds may not deposit public funds in a lending institution if:

(1)

The Commission has found that there is reasonable cause to believe that the lending institution has engaged in discrimination; and

(2)

A court of competent jurisdiction has upheld the finding of the Commission.

(b)

Notice to other public officials. After a court's judicial enforcement of any order to restrain discrimination by a lending institution or after any order for the lending institution to cease or desist a discriminatory practice, the executive director shall forward the name of the lending institution to all county officials in charge of public funds.

(c)

Withdrawal. Except as provided in subsection (d) of this section, on receiving notification from the executive director that a lending institution is engaging discrimination, the county official in charge of funds in the lending institution shall withdraw the funds and redeposit them in another lending institution.

(d)

Authorized deferral. If for reasons of sound economic management, the required withdrawal of the funds under this section will result in a financial loss to the county, the county official may defer the action for not more than 1 year.

(e)

Correction by the lending institution. If the executive director notifies the county officials that the lending institution has corrected its discrimination, a prohibition on the deposit of public funds is no longer applicable.

(1988 Code, § 19-43) (Bill No. 31-00, § 2, 7-1-2004)