(a) Subject to the restrictions of subsection (b) of this Code section and of Code Section 7-1-371 in regard to reserve funds, a financial institution may deposit its funds in any depository which is:
(1) Selected by, or in any manner authorized by, its directors;
(2) Authorized by law to receive deposits; and
(3) In the case of a depository located in the United States, one which has deposit insurance issued by a federal public body to depositories of the type involved.
(b) If a director of the financial institution has a relationship to a depository as either:
(1) An officer or director; or
(2) An owner of 5 percent or more of the shares of the depository,
the depository shall be approved by a majority of the directors other than the director who has such relationship.
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