South Carolina § 34-21-40 - Forms of security for funds received or held in trust.
Full text of South Carolina South Carolina Code of Laws § 34-21-40 — Forms of security for funds received or held in trust., with citation guidance and answers to common questions.
§ 34-21-40. Forms of security for funds received or held in trust.
Funds received or held in the trust department of the bank or by a trust company awaiting investment or distribution must be secured to the trust department or trust company if these funds have been deposited in its own bank, in any of its affiliate banks, or in any other banking corporation by:
(1) furnishing an indemnity bond in a responsible surety company authorized to do business in this State; or
(2) pledging as collateral:
(a) obligations of the United States;
(b) obligations fully guaranteed both as to principal and interest by the United States;
(c) general obligations of this State or a political subdivision of this State; or
(d) obligations of the Federal National Mortgage Association, the Federal Home Loan Banks, Federal Farm Credit Banks, or the Federal Home Loan Mortgage Corporation; or
(3) providing an irrevocable letter of credit issued by the Federal National Mortgage Association, the Federal Home Loan Banks, Federal Farm Credit Banks, or the Federal Home Loan Mortgage Corporation, in which the letter of credit otherwise meets any criteria established and prescribed by the State Treasurer for public funds.
HISTORY: 1962 Code SECTION 8-583; 1952 Code SECTION 8-583; 1942 Code SECTION 7907; 1932 Code SECTION 7907; 1930 (36) 1367; 1991 Act No. 156, SECTION 1, eff June 12, 1991; 2006 Act No. 308, SECTION 1, eff upon approval (became law without the Governor's signature on June 1, 2006).
Effect of Amendment
The 1991 amendment added "of the bank or by a trust company", "or trust company", and "in any of its affiliate banks".
The 2006 amendment substituted items (1) to (4) for "bonds acceptable for the securing of public funds in the State equal in market value to the amount of funds deposited".
Source: official South Carolina text · Last verified 2026-08-27
Frequently Asked Questions About South Carolina § 34-21-40
What does South Carolina Code of Laws § 34-21-40 cover?
Section 34-21-40 ("Forms of security for funds received or held in trust.") is part of the South Carolina Code of Laws, the codified statutory law of South Carolina. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite South Carolina § 34-21-40?
A common citation format is "South Carolina Code of Laws § 34-21-40" (South Carolina). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of South Carolina law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the South Carolina official source linked on this page or consult a licensed South Carolina attorney.
How does South Carolina § 34-21-40 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in South Carolina can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in South Carolina.